WHAT DOES ESG STAND FOR?

ESG stands for Environmental, Social (and Corporate) Governance. It refers to a business practice that, in addition to economic success, also strives to make improvements in these three areas. Compliance with ESG principles results in the creation of sustainability-oriented industrial and financial products.

Many regulations and instruments with specific criteria and indicators have been published in recent years that allow developments and progress in these three areas to be measured and compared. The aim is for the areas E, S and G to be seen as opportunities for creating a sustainable future so that entrepreneurial activity can be aligned accordingly. Until recently, companies have undertaken the systematic assessment of opportunities and risks based on such economic factors as their capital resources or market value. In the future, sustainability and ESG principles will also be crucial elements of such assessments. 

600 pages that is the size of the report by the Technical Expert Group (TEG) on the EU taxonomy.
85 % of DAX companies use the GRI Standards as a framework for their sustainability reports.
49.000 is the number of companies to which the new EU Corporate Sustainability Reporting Directive (CSRD) will apply.

WHY IS ESG RELEVANT TO YOUR COMPANY?

  • Increasingly, sustainability criteria are seen as an entrepreneurial duty and not simply an option.
  • Keyword ‘divestment’: Investors and stakeholders evaluate their investments according to ESG criteria. Fulfillment of these criteria offers opportunities today, whereas non-fulfillment represents a future financial risk.
  • Your customers and business partners expect transparency and disclosure, added to which the demand for genuinely environmentally and socially responsible products is steadily increasing.
  • Buildings and infrastructure have the largest ecological footprint. From an investor’s point of view, real estate, as a long-term asset class, is particularly exposed to the risk of high loss of value – with the risk of turning into stranded assets.
  • Sustainable business models will dominate the market in the medium to long term, so a sustainability strategy with clear objectives will give you a decisive competitive edge.
Companies
  • How resilient is your current business model?
  • Where do you stand in relation to your competitors?
  • What key opportunities and risks does ESG represent for your sector?
  • Do you know your ESG reporting obligations?
Real estate and portfolio
  • How can emissions from new and established buildings be effectively reduced?
  • How can I create workplaces that are both attractive and profitable when leased?
  • What are ‘green leases’ and how can these be implemented?
  • How can I decarbonize a property?
Urban quarters and industrial sites
  • How can livable sustainability-oriented quarters be developed?
  • What will the industrial campus of the future look like?
  • How can quarters be made climate-resilient and climate-neutral?
  • How can SDGs and ESG criteria be applied to and implemented in urban quarters?
  • Which forms of mobility are the most sustainable?
Infrastructure and mobility
  • How can infrastructure be planned, built and operated efficiently and sustainably?
  • How can Cradle to Cradle-inspired materials be used in road building?
  • How can the challenges of resource scarcity, the energy transition and climate change be solved in the infrastructure sector?
Industrial products
  • What is your product’s carbon footprint?
  • What is the status of your supply chain?
  • What potential does the circular economy offer for your business?
  • How is your product integrated into your corporate sustainability approach?

WHAT ESG STRATEGY ARE YOU PURSUING?

Compliance-oriented

Numerous regulations, many of them complex and far-reaching, have emerged for different market players following the Paris Climate Agreement and Agenda 2030 (Sustainable Development Goals, SDGs). It is important to stay abreast of evolving sustainability systems to ensure that your business activity remains lawful and compliant in the future, and to meet the EU’s ESG criteria. It is also essential to manage sustainability risks and be in a position to act with suitable tools and strategies. We can support you in these areas.

Future-oriented

The sustainability megatrend requires adapted or completely new business models. But it also opens up huge opportunities. Our future-oriented consulting undertakes a 360-degree view with you and supports you on your way to becoming a successful sustainability pioneer – with measures ranging from a Quick Check to developing and implementing an appropriate strategy and reporting.

Whether you want to establish legally compliant reporting or to establish your company as a sustainable pioneer in your sector, we can offer a custom-fit solution.

WHICH SECTOR DOES YOUR COMPANY BELONG TO?

The following sectors of the EU taxonomy represent the economic activities that are responsible for 80 percent of carbon emissions under the classification system.

Real Estate
Real Estate

The building sector is the largest energy consumer in the EU. It is responsible for about 40 percent of energy consumption and 36 percent of carbon emissions. How can the construction sector get onto a path to zero emissions?

Transport, Mobility and Infrastructure
Transport, Mobility and Infrastructure

The transport sector accounts for one third of the EU’s total energy consumption – the bulk of it from fossil fuels, particularly oil – and accounts for over 25 percent of carbon emissions. How can mobility become emission-free and climate-friendly in the future?

Manufacturing
Manufacturing

The manufacturing sector ranks second in terms of carbon emissions. What contribution can it make to achieving the goal of a circular economy?

Energy
Energy

The energy sector accounts for over 25 percent of greenhouse gas emissions and is the backbone of the other sectors. How can the energy transition get on the ‘path to zero’?

Finance
Finance

The Green Deal aims to redirect capital flows towards investment in sustainability as the only way to overcome the climate crisis. The resulting EU Disclosure Regulation requires financial market participants to disclose information on the sustainability of their investment decisions. How can the highly dynamic financial sector meet this requirement and get fit for the future?

ICT
ICT

Digitization offers enormous potential to facilitate the EU’s transition to a low-carbon circular economy. The key role of the technology sector as an enabler has not been fully exploited to date. The sector offers a broad range of target areas – from the energy requirements of cloud services and highly globalized supply chains to the use of critical raw materials in chip production. 

WHAT IS THE PATH TO 2050?

Where does Path 2050 lead? You can read here about currently applicable directives and regulations – and the requirements you will face in the future.

 

WHICH DIRECTIVES AND LEGISLATION APPLY TO YOU?

The following provides an overview of the key ESG regulations:

  • EU taxonomy
  • SFDR (Sustainable Finance Disclosure Regulation)
  • NFRD (Non-Financial Reporting Directive)

The information provided here is limited to selected key aspects. 

What is the EU taxonomy?
Who does it apply to?
When does it take effect?
How will it be implemented?
What is SFDR?
Who does it apply to?
When does it take effect?
How will it be implemented?
What is CSRD?
Who does it apply to?
When does it take effect?
How will it be implemented?

WHAT ARE THE KEY TERMS?

ESG
EU Green Deal
EU-Taxonomy

DO YOU HAVE QUESTIONS ABOUT ESG?

Michael Jelencsits Manager


michael.jelencsits@dreso.com