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Chapter 1

Sustainability as a competitive advantage

Beyond Compliancy

Although the "E" in ESG receives the most attention, the "S" and the "G" represent important considerations to achieve not just CSRD compliance but business advantages.

In today’s dynamic business landscape, Environmental, Social, and Governance principles are reshaping the ways we do business. We are pivoting towards more sustainable practices and nurturing trust among stakeholders. But it’s not just about fulfilling regulatory obligations and aligning your business with global Sustainable Development Goals. For companies, neglecting ESG initiatives can have profound financial consequences. It can impact investor relations, IPO preparations, and even become a critical component in mergers and acquisitions.

But there is also a positive side. Making an investment that allows you to leverage ESG data fosters transparency throughout the supply chain and empowers you to reengineer products. This allows companies to mitigate their environmental impact and increase their bottom line.

Read below to learn more about each pillar of ESG reporting.

Environmental

  • Reduction of the Impact of Corporate Operations on Climate Change
  • Protection of Natural Resources
  • Enhancement of Resource Efficiency
  • Implementation of a Circular Economy
  • Utilization of Renewable Energy
  • Production of Sustainable Products
  • Adoption of Sustainable Technologies and Processes
  • Sustainable Building Management
  • Sustainable Water Management
  • Sustainable Mobility and Logistics Concepts

Action Items

Moving beyond the surface, what do these regulations mean in practical terms for businesses? Remember that the ESG reporting requirements were designed with a very specific purpose: to provide transparency around business' carbon footprints and generate participation in the global sustainability movement. These activities can also go a long way towards building consumer trust, preparing for mergers & acquisitions, and supporting the business' overall financial health. In addition to the regulations, businesses must take the following actions in order to (1) become ESG compliant and (2) gain competitive advantages from the increased transparency and sustainability focus.
  • 1

    Measure emissions from business operations

    Businesses can measure their emissions from their operations to identify the biggest drivers of emissions and take action to reduce them. This includes emissions from buildings, travel, procurement, and more.

  • 2

    Measure emissions from financial activities

    Businesses can look into their financial activities to determine their carbon impact. Investments and banking activities can be adjusted to minimize carbon impact.

  • 3

    Offer more sustainable products and services

    Moving outside of the business itself, businesses can clearly examine the carbon emissions generated by their products and services. New, sustainable products and services can be offered to customers. Additionally, existing products and services can be adjusted to reduce their carbon impact.

  • 4

    Work together with customers

    Businesses can invite their customers to join them on their journey to reducing carbon emissions. This topic is increasingly important to consumers and businesses alike, which makes it a financially savvy move.

Foundations for ESG Compliancy & Advantages

Before the above action items can be taken, there are many steps that must be taken first. Depending on a business' data and reporting maturity, this can be a very length process.

Continue reading to discover the preparatory steps required to achieve both ESG compliancy and open the door to competitive business advantages.

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Preparing for ESG Compliancy:

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