
Focal points
Sustainability Reporting (ESG)


ESG-Reporting
Becoming the first climate-neutral continent – this is the core objective the European Commission aims to achieve with the European Green Deal by 2050. In this context, the “Sustainable Finance” action plan, which views Environmental, Social, and Corporate Governance (ESG) criteria as integral components of corporate activities, plays a key role in achieving this goal. In addition to European standards for “green” bonds and the intended reorientation of capital flows towards sustainable investments, sustainable finance also emphasizes transparency, ultimately resulting in the mandatory reporting of material ESG information by companies.
The concept of ESG or sustainability reporting is not new, however. Already in 2014, the EU’s Non-Financial Reporting Directive (NFRD) required large capital market-oriented EU companies, under sections 289b et seq. of the German Commercial Code (HGB), to include a non-financial statement in the (consolidated) management report or publish a separate non-financial report. However, until now, there has been no obligation for the audit of non-financial disclosures by independent third parties or for the use of generally accepted standards.

In the context of the so-called Green Deal of the EU, the existing provisions of the NFRD have been reviewed. As a result, the previously applicable regulations were tightened and clarified with the Corporate Sustainability Reporting Directive (CSRD), which came into effect on January 5, 2023. The scope of companies required to report has been significantly expanded, and binding reporting standards, the European Sustainability Reporting Standards (ESRS), were introduced. At the same time, the CSRD – indirectly through its amendments to the EU Accounting Directive (2013/34/EU) – also expanded the scope of the EU Taxonomy, which has been in effect since 2020. Finally, the criterion ‘of public interest’ in the relevant Articles 19a and 29a of the EU Accounting Directive will henceforth be removed.
While large capital market-oriented companies have been familiar with the concept of sustainability reporting since the NFRD, the CSRD will particularly pose significant temporal and personnel challenges for large mid-sized companies due to the increasing regulatory requirements.
We guide you on the path to reporting readiness – from understanding the regulations, selecting and implementing an appropriate software solution, to the final publication of key information and KPIs in the financial or management report!
Our consulting services
ESG Compliance
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- Reporting Readiness Assessment
- Conducting regulatory workshops, in particular:
- Architecture of the ESRS & Double Materiality Analysis
- Functioning of the EU Taxonomy
- Interdisciplinary training for ESG responsible parties
- Process consulting for the implementation of regulatory requirements
- Design of ESG reporting
Technology & Reporting
Our Recommendation
With the CSRD amendment, sustainability reporting becomes an integral part of the financial statement preparation for large companies and corporate groups and, as a component of the (consolidated) management report, is a mandatory part of the audit. ESG information is comprehensive and spans across various frameworks and regulations. The ESRS, which will be mandatory from 2024, alone comprise over 1,000 data points that need to be materially assessed, documented, and reported. The complexity of sustainability information also requires clearly defined processes to ensure the reliability of the data and effective management. Therefore, supporting technologies play a significant role in the implementation of regulatory requirements in multiple ways.
Benefits and Features of an ESG Reporting Solution:
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- Data Collection and Aggregation Across Various Subsystems
- Data Management (“Single Point of Truth”) and Audit Trail
- Dashboarding and Performance Analysis
- Disclosure Management (ESEF, iXBRL Tagging)
ESG reporting solutions enable a reliable and audit-proof reporting process and should be integrated early in the context of fulfilling ESG reporting obligations. Without a reporting strategy tailored to the company and without an appropriate ESG reporting solution, implementing CSRD-compliant reporting will be difficult to achieve efficiently.
Our Vision
“We provide comprehensive advisory services to our clients on the new regulatory challenges of sustainability reporting. In the finance sector, we design and implement processes and systemic solutions for data management, reporting, and the management of ESG KPIs.”
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