What is an ESG report?

Lately we have been hearing a lot about the ESG report and all the regulations behind it. The real question is: do we really know what it is all about?

First, ESG stands for Environmental, Social and Governance. An ESG report is a disclosure of a company’s Environmental, Social, and Governance practices. It reflects the company’s commitment to sustainable and ethical operations.

Why is it important?

The ESG report became a key factor for many industries in the latest years. Increasing pressure from customers, investors, bankers, but also institutions and their goal to be NET ZERO by 2050 are a driving force behind this.

Different legislations are related to the ESG report, for example:

• Corporate Sustainability Reporting Directive: which extends the scope of mandatory ESG reporting to all large companies and SMEs listed on regulated market.
• EU Green Bonds Regulation (EUGBR): which aims to set an EU standard for how companies and public authorities can use green bonds to raise funds on capital markets.
• Corporate Sustainability Due Diligence Directive (CSDDD): which proposes a horizontal framework to foster the contribution of businesses operating in the single market to respect human rights and the environment.

What to do now?

If you are a large company, as from 2024 you are obliged to publish your ESG report. Regarding the SMEs, there is not yet a due date for the report. This means that even though small and medium enterprises won’t be obliged to report their operations in terms of ESG, they will have to provide data and certificates to big companies and follow up on following legislations.

There is no specific industry that must comply more than others, this means that every company will be touched by the ESG revolution.

How can we help?

Since we know that moving into this new field is complicated and that setting up a strategy for the ESG report requires knowledge and time, we organize a new training on June 11th, 2024 to help you understanding better where to look for legislation, how to set up new operations and gathering data.

Program and registration : Click here!