The implementation of ESRS reporting (European Sustainability Reporting Standards) presents significant challenges, especially for medium-sized businesses in Germany. Many of my clients fall into this category: often, they can only dedicate a small team to ESRS reporting, and these tasks are frequently added to other responsibilities, such as compliance, marketing, or finance.
In my daily work, I often see how complex and opaque the technical requirements of the ESRS standards are – regardless of whether a company already has experience in sustainability or not. This is where many businesses are looking for support.
Double Benefit through the Double Materiality Analysis
Despite the frustration that the CSRD topic causes in many companies, it has become clear that the structured approach to double materiality – which considers both the impacts and the risks and opportunities along the entire value chain – often leads to a shift in corporate thinking. Sustainability is now being tackled systematically and more seriously, a process that likely would not have been initiated without these regulations.
While the ESRS framework may initially seem like an added burden, I believe it is also a necessary step to initiate transformation processes that might otherwise never have occurred. Companies are forced to address issues they might have previously overlooked – and this is an opportunity they should not let pass by. More and more companies are realizing that sustainability is not just a regulatory issue, but an essential part of their corporate strategy. Businesses that do not actively engage with this change may fall behind in the long run.
Sustainability as a Competitive Advantage
Companies that actively engage with sustainability can more easily establish themselves in the market over the medium term. Additionally, in times of skill shortages, it has become evident how important sustainability is for attracting talent. More and more professionals prefer employers who integrate sustainable practices into their business strategy. For these companies, it is significantly easier to attract and retain qualified talent.
One thing is certain: sustainability is not just a legal obligation, but a valuable opportunity to secure a company’s long-term future – both from a business and a social perspective.
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This blog article is based on an interview with Phillip Blumenthal.
Watch the full video on YouTube here.
