Establishing sustainability in a company is by no means just about minimizing the ecological footprint or using fewer resources, for example - it requires a holistic ESG strategy. An ESG strategy can reduce risks and expand opportunities in the company, which has a direct impact on business performance and valuation. This article describes the 5 steps to start the ESG strategy.
When it comes to ESG, the term Scope 1, 2 and 3 emissions also often comes up. But the various greenhouse gas (GHG) emissions may still be a mystery to many companies. What is the difference between the different scopes and direct and indirect emissions? And what does the GHG Protocol have to do with the emission scopes?
Companies that do not meet ESG (Environment, Social, Governance) requirements will disappear from the market in the medium term. EU legislation is already on its way in this area. Many companies are already feeling the effects of ESG requirements on their own business model. Financing from banks is being denied and tenders require evidence of ESG compliance before being awarded. But how can a company make itself ESG-compliant? Where can the relevant guidelines and standards be found?
The topic of sustainability is becoming increasingly important and it is no longer possible to imagine society without it. Awareness of sustainability has long since ceased to be relevant only for private consumers. Companies are also becoming increasingly aware of their influence on the environment and society. In order to anchor sustainability strategically, company managers must consider how they want to operate an active and targeted sustainability management in the company and what needs to be taken into account.
With the decision of the European Green Deal of the EU of 2019, a comprehensive program was proclaimed with the goal of making the EU climate neutral by 2050, promoting sustainable business and anchoring sustainability more strongly in companies. The European Green Deal includes a number of regulations and laws, which also form the basis for ESG and sustainability reporting. We present the most important ones.
Munich-based Cubemos GmbH offers Software , which helps organizations to comply with EU sustainability regulations such as CSRD/ESRS, EU taxonomy or carbon footprints.
