{"id":22467,"date":"2024-08-20T08:07:30","date_gmt":"2024-08-20T08:07:30","guid":{"rendered":"https:\/\/www.cplace.com\/?page_id=22467"},"modified":"2025-09-03T12:29:55","modified_gmt":"2025-09-03T12:29:55","slug":"esg-reporting","status":"publish","type":"page","link":"https:\/\/www.cplace.com\/en\/glossary\/esg-reporting\/","title":{"rendered":"Glossary – ESG Reporting"},"content":{"rendered":"\n\t\t
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ESG Reporting<\/h1>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t
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What Is ESG Reporting?<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

The term ESG reporting plays an important role in sustainability reporting and is a central component of it. The abbreviation ESG stands for Environmental Social Governance<\/em>. The term therefore refers to the process in which the three areas of environmental, social and governance are measured, evaluated and presented transparently. The aim here is for companies to be able to disclose their sustainability and CSR (Corporate Social Responsibility) activities.<\/p>\n

The term originally comes from the world of finance and is primarily used by stakeholders as a basis for decision-making. The key figures published in the report make the reports measurable and comparable.<\/p>\n

ESG reporting is also becoming increasingly important, particularly in the software and project management sectors, in order to meet all requirements, provide stakeholders with sufficient information and also strengthen competitiveness and reputation through responsible business practices.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\n\n\n\n\t

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European Sustainability Reporting Standards (ESRS) <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

The first drafts of the European Sustainability Reporting Standards (ESRS) show how complex reporting can be. A total of 70 indicators are included in the drafts and assigned to the three areas.<\/p>\n

32 of these indicators fall under the area of the environment. This means that the ESRS divides the relevant environmental topics into the following categories, among others: Climate Change, Pollution, Water and Marine Resources, Biodiversity and many more.<\/p>\n

A further 32 key figures are assigned to the area of social issues. Here, the topics can be subdivided as follows: own workforce, workforce in the value chain, customers, end consumers and affected communities.<\/p>\n

Governance is more about responsible business practices (focus on diversity, anti-corruption, etc.) and less about data-driven indicators. The last six indicators are assigned to this area.<\/p>\n

These indicators also help shareholders and stakeholders to better evaluate the company. The more ESG criteria a company fulfills, the better it is ranked in the reporting.<\/p>\n

The ESRS are binding standards for all European companies that are required to prepare ESG reporting.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n

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\n\t\t\t\t\t\tOther Mandatory EU Directives\t\t\t\t\t<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

In addition to the ESRS, the CSRD (Corporate Sustainability Reporting Directive) guidelines<\/a> must also be complied with, with non-financial reporting playing a particularly important role (e.g. sustainability targets, role of the Supervisory Board).<\/p>\n

Another important EU directive is the EU Taxonomy, which contains guidelines for climate and environmentally friendly investments and tasks. The SFDR (Sustainable Finance Disclosure Regulation) also plays an important role. This requires all parties involved to disclose the sustainability of their financial products.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t

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Who Is Obliged to Provide ESG Reporting?<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

ESG reporting is still voluntary for some sectors, but all capital market-oriented companies are obliged to prepare a sustainability report.\u00a0 This regulation is also to come into force for all large companies (such as banks, insurance companies, limited liability partnerships) from 01.01.2025.<\/p>\n

However, such companies are only obliged to prepare a report as soon as they fulfill two of these three criteria:<\/p>\n