The term ESG describes three sustainability-related areas of corporate responsibility. ESG is the abbreviation for “Environmental, Social and (Corporate) Governance.” Below you will find a brief introduction to ESG Reporting, and what challenges this means for your company.
In addition to the abbreviation ESG, the term “sustainable” is often used synonymously in the press and literature.
The ESG Criteria
- Resource scarcity
- Safety and health
- Demographic change
- Food Security
- Risk and reputation management
- Supervisory structures
ESG reporting - when does it concern you?
You are required to report from 01.01.2025 if you meet two of these three criteria:
- 250 Employees
- 20 Mio EUR Balance sheet total
- 40 Mio EUR Revenue
You are required to report from 01.01.2026 if you meet two of these three criteria:
- 10 Employees
- 350.000 EUR Balance sheet total
- 700.000 EUR Revenue
You are obliged to report (as a non-EU company) from 01.01.2028 if you meet these criteria:
- At least one subsidiary or branch in the EU
- 150 Mio EUR Group turnover in the EU
The significance of the new reporting requirements in practice
The new regulations of the CSRD not only massively extend the obligation for ESG reporting / sustainability reporting to companies that were not previously affected, it is also becoming increasingly important. Non-financial information is now accorded the same status as financial information and is subject to comparable requirements in terms of reporting quality, reliability and discoverability.
This poses a number of challenges for the companies concerned:
- Obtaining and preparing the right data and filtering out high-quality and reliable information
- An expanded scope of ESG reporting
- The digital provision of the sustainability report
- The redesign and expansion of the content of the sustainability report (incl. the ESRS to be taken into account)
- The external audit requirement for the sustainability report
At the same time, the introduction/implementation of meaningful ESG reporting is also a new challenge for change management: For example, employees who were previously unfamiliar with professional reporting now have to collect, filter and prepare extensive data.
For this reason, the companies concerned should address the new reporting requirements at an early stage and make preparations for implementing the necessary processes. Many affected companies are faced with the problem of having to record and provide financial and non-financial data in a standardized way for the first time. While mid-sized companies have decades of experience in reporting financial data. However, they lack this experience when reporting non-financial data because data source and data format differ, sometimes significantly.
At Bluebird, we help you achieve your sustainability and ESG goals and are always there to support you with our professional know-how as well as our technical expertise.
We look forward to hearing from you.
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Are you looking for an ESG reporting solution?
Since it is a particular challenge for meaningful ESG reporting / sustainability reporting to fully prepare the right data and to filter out high-quality and reliable information, we recommend using a platform solution.
The difference between a single solution and a platform solution is that a platform solution maps all CPM processes and does not just focus on a specific sub-area. In terms of data availability, this results in a seamless transition without redundant data storage. In addition, a comprehensive solution is much more user-friendly and faster to introduce (implement) than individual stand-alone solutions.