The obligation to report on ESG (environmental, social and governance) is becoming increasingly important and presents companies with new challenges. From 2024, companies with more than 500 employees in the EU will be obliged to report regularly on their ESG strategies and activities. From 2025, companies that meet 2 of the following 3 criteria will also be affected.
- Employees > 250
- Turnover > € 50 million
- Balance sheet total > € 25 million
The trickle-down effect will also put partners of reporting companies in the position of having to prepare a report without being legally obliged to do so.
What does that mean in concrete terms?
Transparency and responsibility: Companies must not only disclose their financial results, but also their environmental, social and governance strategies. It is about how companies minimize their impact on the environment, how they assume social responsibility and how they make their corporate governance transparent and sustainable.
Integration into the corporate strategy: ESG aspects must be integrated into the long-term corporate strategy. Reporting goes beyond mere compliance and becomes an important part of corporate governance that strengthens the trust of investors, customers and other stakeholders.
Competitive advantage: Companies that focus on ESG at an early stage and establish sustainable corporate governance can not only position themselves as responsible brands, but also benefit from a positive image and a stronger market position.
Risk management and efficiency: Regular ESG reporting enables companies to identify risks at an early stage and take measures to optimize their business practices and remain competitive in the long term.
For us at AC Alpha Interim Experts, this development offers an exciting opportunity to support companies with interim management expertise in the areas of ESG and sustainable corporate governance. Our interim managers have the necessary experience to help companies efficiently implement the new requirements and successfully put their ESG strategies into practice.
For initial information on ESG reporting, we recommend:
EU Commission – Sustainable finance and ESG reporting: The EU provides comprehensive information and guidelines on ESG reporting and sustainable finance, which are particularly relevant for companies that are legally obliged to report on their ESG practices. Sustainable finance – European Commission
Are you ready to take your ESG reporting to the next level? Find out more about our consulting services or contact us to find out how our experts can support you!
