Tipps & Learnings aus der EFRAG-Studie zu den ersten CSRD-Berichten
04.10.2024

EFRAG-Studie: Learnings und Tipps für Ihren CSRD-Bericht 

Die EFRAG hat einige der ersten ESRS-Nachhaltigkeitsberichte analysiert und die Ergebnisse in einer umfassenden Studie veröffentlicht. Hier finden Sie die Learnings aus der Untersuchung und unsere Tipps zur CSRD-Umsetzung.

Im Jahr 2024 haben einige Unternehmen ihren ersten freiwilligen Bericht nach den ESRS (European Sustainability Reporting Standards) veröffentlicht. In einer Studie hat die EFRAG einige dieser ersten ESRS-Berichte analysiert.

Die European Financial Reporting Advisory Group (EFRAG) ist eine unabhängige Beratungseinrichtung der EU, die die Entwicklung von Berichtsstandards, insbesondere im Bereich der Nachhaltigkeit, vorantreibt. Sie hat die ESRS, die Standards zur Umsetzung der CSRD, mit entwickelt.

Unternehmen, die sich erstmals mit der Nachhaltigkeitsberichterstattung beschäftigen, erhalten durch die Studie Learnings, Best-Practice-Ansätze und Hilfestellungen. Wir haben uns das umfangreiche Dokument angesehen und für Sie übersichtlich aufbereitet.

In diesem Beitrag erhalten Sie: 

  • Praktische Ansätze zur ESRS-Umsetzung sowie ihre Vor- und Nachteile
  • Dos & Don’ts für Ihren CSRD-Bericht
  • Unsere 5 Top-Tipps für einen CSRD-konformen Bericht

Praktische Ansätze zur ESRS-Umsetzung sowie ihre Vor- und Nachteile

Die EFRAG hat sich die bisherigen Berichte aus vier Perspektiven angesehen:

  • Wie sind die Unternehmen die Doppelte Wesentlichkeitsanalyse angegangen?
  • Wie wurden die Datenpunkte ausgewählt und wie war die Qualität der Beantwortung?
  • Wie detailliert wurde die Wertschöpfungskette in den Berichten abgebildet?
  • Wie waren die Verantwortlichkeiten im ESG-Berichtsmanagement geregelt?

Für diese vier Perspektiven hat die Organisation unterschiedliche Ansätze beobachtet, die alle ihre Vor- und Nachteile haben. Je nach Erfahrung, Datenlage und Organisation sind unterschiedliche Ansätze für Unternehmen sinnvoll. Mit dieser Übersicht erhalten Sie Inspirationen für die Umsetzung in Ihrem Unternehmen:

Thema Vorläufig beobachtete Ansätze Vorteile Nachteile
Doppelte Wesentlichkeitsanalyse Basierend auf Datenerhebungen, ergänzende Einbindung von Stakeholdern und Expert:innen Objektive, evidenzbasierte Bewertung von wesentlichen Themen Qualität und Effizienz können leiden, wenn wenige oder unpräzise Daten vorhanden sind und Expert:innen nicht ausreichend einbezogen werden
Basierend hauptsächlich auf Input von externen Stakeholdern und internen Beteiligten Breitere Spanne von möglicherweise wesentlichen Themen kann den Horizont weiten Themenvielfalt kann überfordern; Bewertungen könnten subjektiv sein
Datenpunkte Bewertung der Wesentlichkeit auf Ebene einzelner Datenpunkte (Bottom-up) Präventives Aussortieren von unwesentlichen Datenpunkten spart Arbeit und verschlankt den Bericht aufs Wesentliche Das Konzept der Wesentlichkeit auf Datenpunktebene (“Ist dieser Datenpunkt für das Unternehmen wesentlich?”) wird selten vollständig verstanden
Nutzung der Phase-in-Optionen (Auslassung von Datenpunkten im ersten oder zweiten Berichtsjahr) Unternehmen können sich besser auf den Aufbau der Datenbasis, die Korrektheit des Berichts und den Aufbau von Prozessen fokussieren Vergleichbarkeit (Basisjahre etc.) nicht konsistent und ggf. irreführend; Sorge vor dem Übersehen von Berichtspflichten
Offenlegung aller Datenpunkte ohne Nutzung der Phase-in-Optionen Sicherstellung, dass keine Berichtspflicht übersehen wird Hoher Aufwand; möglicherweise sind nicht alle Datenpunkte relevant; geringere Datenqualität aufgrund des größeren Berichtsumfangs
Wertschöpfungskette Stark segmentiertes Mapping (z. B. nach Produktionsstufen) Sehr detaillierte Berichterstattung mit einer hohen Transparenz Schwierig, das Gleichgewicht zwischen Aggregation und Granularität zu finden; branchenspezifische Leitlinien wären hilfreich
Grobe Aggregation (z. B. auf Gesamtstufen von Upstream, Downstream und eigenen Operationen Verschlankung des Berichts; ein Überblick ohne Detailtiefe ist für Leser:innen oft ausreichend Kann die Bewertung von IROs auf der richtigen Detailebene einschränken und möglicherweise Nuancen komplexer Wertschöpfungsketten übersehen
Über direkte Geschäftsbeziehungen (Tier 1) hinausgehen Hohe Transparenz; vollständige ESRS-Konformität Begrenzte Datenverfügbarkeit, insbesondere für Finanzinstitute; Schwierigkeiten bei der Anwendung über Tier-1-Beziehungen hinaus
Fokus nur auf direkte Geschäftsbeziehungen (Tier 1) Daten sind in diesem Bereich eher vorhanden; für einige Unternehmen ist nur Tier 1 wesentlich Nicht konform mit ESRS-Anforderungen; Informationsverzerrungen und unzureichende Berücksichtigung wesentlicher Auswirkungen im Zusammenhang mit indirekten Geschäftsbeziehungen
ESG-Berichtsmanagement Eine Person ist in der Hauptverantwortung; häufig aus dem Bereich Nachhaltigkeit oder Finanzen Es gibt eine klare Ansprechperson im Unternehmen Schulungen sind erforderlich, um den Führungskräften umfassende Kenntnisse im Management von ESG-Inhalten und Datenmanagement zu vermitteln
Gemeinsame Verantwortung zwischen Abteilungen (z. B. Finanzen und Nachhaltigkeit) Eine Aufteilung der Verantwortung wird möglich; Skills können gebündelt werden Erfordert klare Governance und regelmäßige Foren für Updates, Koordination und Entscheidungsfindung zwischen den beteiligten Abteilungen

Dos & Don’ts für Ihren CSRD-Bericht

Dos:

Strukturieren Sie die Nachhaltigkeitsberichterstattung klar: Legen Sie klare Verantwortlichkeiten für Berichtsprozesse, Datenlieferung, Überprüfung, Kommunikation etc. fest – ähnlich wie bei der Finanzberichterstattung.

Beziehen Sie interne und externe Expert:innen ein: Führen Sie Workshops und Interviews durch, um fundierten Input – insbesondere für Ihre wesentlichen Themen – zu erhalten.

Kommunizieren Sie Umfang, Ziel und Zweck des Berichts intern und extern: Ein gemeinsames Verständnis zur CSRD-Berichtspflicht fördert eine konsistente Datenqualität und einen einheitlichen, lesbaren Bericht.

Don’ts:

Vermeiden Sie eine zu hohe Aggregation der Daten: Wenn Sie Daten, Prozesse und Beschreibungen zu allgemein oder kurz fassen, können relevante Informationen untergehen.

Keine rein subjektiven Einschätzungen: Greenwashing war gestern – die CSRD fordert Beweise für Ihre Aussagen. Ergänzen Sie qualitative Informationen immer durch datenbasierte Nachweise.

Berichten Sie keine überflüssigen Datenpunkte: Vermeiden Sie es, mehr Datenpunkte als notwendig aufzunehmen, da dies von relevanten Informationen ablenken kann.

Praxisleitfaden: Fit für den ersten CSRD-Bericht

Unser Praxisleitfaden mit Checkliste erleichtert Ihnen den Einstieg und die Vorbereitung auf die CSRD und die ESRS.

Unsere 5 Top-Tipps für einen CSRD-konformen Bericht

  1. Klar definierte Prozesse etablieren: Entwickeln Sie klare Prozesse für die Datenerhebung und Berichterstattung – nur so können Sie Konsistenz und Zuverlässigkeit sicherstellen.
  2. Die Berichterstattung gut organisieren: Etablieren Sie klare Verantwortlichkeiten und fördern Sie die bereichsübergreifende Zusammenarbeit. Bei der Umsetzung der CSRD müssen alle Abteilungen anpacken.
  3. Datengap-Analyse durchführen: Nutzen Sie die EFRAG Implementation Guidance 3. Damit finden Sie Ihre Lücken in der Datenerhebung und können diese schließen.
  4. Lieferkette schon jetzt mitbedenken: Trotz der Übergangsfristen raten wir Ihnen schon jetzt dazu, an der Transparenz Ihrer Lieferketten zu arbeiten – denn Lieferantendaten einzuholen gelingt auch mit einem Top-Tool wie dem Supply Chain Hub nicht von heute auf morgen.
  5. IT-Integration: Trennen Sie sich von den unübersichtlichem Excel-Listen und implementieren Sie eine Software wie den VERSO ESG Hub, der für die Sammlung und Berichterstattung der über 1.000 Datenpunkte gemacht ist.

Fazit

Unser Fazit zur Studie der EFRAG: Es gibt für die Umsetzung der CSRD-Berichtspflicht unterschiedliche Ansätze. Es zeichnet sich aber ab, dass die Anforderungen nur erfüllbar sind, wenn

  • eine hohe Datenqualität vorhanden ist,
  • der Fokus auf den wesentlichen Themen, Angabepflichten und Datenpunkten liegt und
  • die berichtspflichtigen Datenpunkte faktenbasiert und detailliert berichtet werden.

Dazu sind eine zentrale Datenerhebung und klare Kommunikation der Anforderungen essenziell. Es sollten genügend Zeit und Ressourcen für die Wesentlichkeitsanalyse eingeplant werden. Und zum korrekten Reporting ist umfangreiches Wissen (intern und/oder extern) über die einzelnen Anforderungen notwendig.

Sie brauchen hierbei Unterstützung? Bei VERSO gibt es alles aus einer Hand: Software, Consulting und Weiterbildung.

* Bei diesen Informationen handelt es sich um redaktionell zusammengefassten Content, der nicht als Rechtsberatung zu verstehen ist. VERSO übernimmt keine Haftung. 
10 CSRD-Tipps
23.09.2024

10 CSRD-Tipps für
ESG-Verantwortliche

„CSRD – was müssen wir da genau machen?” Viele Unternehmen stehen vor dieser Frage. Der Umfang der Berichtspflicht und der dazugehörigen ESRS-Standards ist sehr herausfordernd. Verlieren Sie nicht gleich die Nerven – mit diesen 10 CSRD-Tipps fällt Ihnen der Start leichter.

Der erste Blick auf die Anforderungen der Corporate Sustainability Reporting Directive (CSRD) und der European Sustainability Reporting Standards (ESRS) kann den Puls von Nachhaltigkeitsverantwortlichen schonmal erhöhen. Die CSRD ist zwar herausfordernd, aber das ist noch lange kein Grund zur Panik! Hier sind 10 CSRD-Tipps für Sie, wenn Sie sich erstmals mit der europäischen Berichtspflicht auseinandersetzen.

CSRD-Tipp 1: Betroffenheit von ESG-Regularien klären

Verschaffen Sie sich einen Überblick über die CSRD und darüber, ob Ihr Unternehmen betroffen ist und wann Sie erstmals berichten müssen. Klären Sie ab, ob Sie von weiteren ESG-Regularien betroffen sind oder sein werden. Denn ggf. können oder müssen diese Regularien im CSRD-Bericht mit abgedeckt oder berücksichtigt werden. Wichtig sind in diesem Zusammenhang unter anderem die EU-Taxonomie, das deutsche Lieferkettengesetz LkSG und die europäische Lieferkettenrichtlinie CSDDD. Einen Überblick über die CSRD gibt es im Factsheet CSRD.

CSRD-Tipp 2: Den Berichtsstandard ESRS genauer anschauen

Um den Umfang und die Anforderungen der CSRD an Ihren Nachhaltigkeitsbericht zu verstehen, ist es wichtig, dass Sie zumindest einen groben Überblick über das Framework, die ESRS, haben. Keine Sorge, Sie müssen dazu nicht alle über 1000 Datenpunkte lesen und verstehen: Am besten schauen Sie sich hier den Aufbau des ESRS-Berichts an. Und falls Sie doch genauer reinschauen wollen, können Sie sich auf der Website der EFRAG alle ESRS-Standards in der Originalversion herunterladen.

CSRD-Tipp 3: Die Theorie mit der Praxis verknüpfen

Es gibt einige Unternehmen, die in diesem Jahr einen CSRD-Bericht veröffentlicht haben. Sie können davon lernen und bekommen ein Gefühl dafür, wie Ihr Bericht aussehen könnte. Allerdings ist jedes Unternehmen so individuell, dass Sie sich nicht genau an einem dieser Berichte entlanghangeln können. Jeder Bericht hat unterschiedliche Dinge gut gemacht.

Aber ein Spoiler vorweg: Der CSRD-Bericht wird vermutlich näher am Finanzbericht sein als die meisten bisherigen Reportings nach GRI oder DNK. Aktuell wird viel diskutiert, welche Richtung der Nachhaltigkeitsbericht einschlagen wird. Hier finden Sie eine Studie der EFRAG über einige erste Berichte.

Kurs: Fit for Sustainability – Nachhaltigkeit für Fach- und Führungskräfte

Verschaffen Sie sich ein umfassendes Verständnis von Sustainability-Compliance, ESG-Management und der Umsetzung der Nachhaltigen Transformation. Speziell zugeschnitten auf die Bedürfnisse und Perspektiven von Fach- und Führungskräften!

CSRD-Tipp 4: Methodik der doppelten Wesentlichkeit verstehen

Die Basis des CSRD-Berichts ist die Analyse der doppelten Wesentlichkeit. Die Wesentlichkeitsanalyse gibt es schon länger, aber das Prinzip der doppelten Wesentlichkeit, um berichtsrelevante Nachhaltigkeitsthemen zu identifizieren, ist erst mit der CSRD verpflichtend geworden. Die ESRS schreiben hierfür einen konkreten Prozess vor, der dokumentiert werden muss. Hier gilt es, kritisch zu hinterfragen: Wie steht es um unser Wissen und unsere Kapazitäten für die Wesentlichkeitsanalyse? Schaffen wir das intern oder brauchen wir externe Hilfe?

Unsere Erfahrung zeigt: Das Hinzuziehen von externen Berater:innen ist auf jeden Fall hilfreich – allein schon, um bei der Bewertung und Auswahl der Themen auf ihre Erfahrung zurückgreifen zu können. Egal, wie Sie sich entscheiden: Den Prozess für die Analyse haben wir Ihnen hier skizziert. Einen guten Überblick über die Methode erhalten sie auch in der Implementation Guideline der EFRAG und in den unterstützenden Dokumenten des DNK.

CSRD-Tipp 5: Ressourcen und Know-how für das Projekt CSRD schaffen

Die CSRD ist eine große Herausforderung und kein einmaliges Projekt. Ein:e Nachhaltigkeitsmanager:in allein reicht oft nicht aus. Schauen Sie sich die To-dos realistisch an: Welche Ressourcen brauchen wir für die Umsetzung? Sind weitere Skills oder Fortbildungen notwendig? Müssen wir jemanden einstellen? Für den Fall, dass es am Know-how scheitert: Bei der VERSO Academy finden Sie bestimmt die richtige Weiterbildung.

CSRD-Tipp 6: Prozess im Detail planen

Es gibt einige Schritte bei der CSRD-Berichterstattung, die entweder viel Zeit, viele Abstimmungen mit internen Stakeholdern oder beides benötigen. Wichtig ist daher, dass der Prozess realistisch und vorausschauend ist. Auch Puffer sollten Sie einkalkulieren und gerne etwas großzügiger planen. Folgende Meilensteine sollten Sie beachten:

  • Wann wollen wir den Bericht veröffentlichen?
  • Gibt es zeitliche Einschränkungen, die wir beachten müssen (Urlaube, andere Projekte?)
  • Wann schreiben wir den Bericht?
  • Wer muss wann in den Prozess eingebunden werden?
  • Wann sammeln wir die Daten?
  • Wann machen wir die Analyse der doppelten Wesentlichkeit?
  • Wann müssen wir starten?

Die Herausforderung des ersten Nachhaltigkeitsberichts

Der erste ESG-Bericht eines Unternehmens ist stets besonders aufwendig. Wir haben für Ihre ersten Nachhaltigkeitsbericht einen praxisorientierten Leitfaden erstellt. Sie werden Schritt für Schritt durch den Prozess zu einem aussagekräftigen Nachhaltigkeitsbericht geführt.

CSRD-Tipp 7: Ansprechpartner festlegen

Die Berichterstattung ist Teamarbeit: Bei der Umsetzung der CSRD sind neben den Nachhaltigkeitsmanager:innen die unterschiedlichsten Bereiche eines Unternehmens gefragt. Legen Sie frühzeitig Ihre Ansprechpartner aus den Teams fest, holen Sie sie mit an Bord und klären Sie die Verantwortlichkeiten. Welche Teams warum und wie mit der CSRD beschäftigt sind, haben wir in einer Grafik zusammengefasst.

CSRD betrifft das ganze Unternehmen – Geschäftsführung, Stakeholder, Risikomanagement, Marketing, HR, Einkauf.

CSRD-Tipp 8: Prozess für die Datensammlung erarbeiten

Sie werden viele, viele Daten für Ihren CSRD-konformen Nachhaltigkeitsbericht brauchen. Da stellt sich schnell die Frage: Wie sammeln wir die Daten? Etablieren Sie dafür einen möglichst nahtlosen Prozess. Und dann: Wo sammeln wir die Daten? Ja, das kann eine Excel-Liste sein, die wird aber erfahrungsgemäß schnell unübersichtlich. Unsere Empfehlung: Nutzen Sie dafür eine Nachhaltigkeitssoftware.

CSRD-Tipp 9: Nachhaltigkeit strategisch betrachten

Die CSRD fragt aktiv nach einer Nachhaltigkeitsstrategie – Sie benötigen ein Konzept für jeden einzelnen wesentlichen Nachhaltigkeitsaspekt. Darüber hinaus müssen Sie zeigen, wie Nachhaltigkeit in der Unternehmensstrategie verankert wird. Hier sind Tipps zur Erarbeitung einer Nachhaltigkeitsstrategie.

CSRD-Tipp 10: Lieferkette nicht vergessen

Sie können hier zwar die Übergangsfrist ziehen, früher oder später benötigen Sie aber die Daten aus der Lieferkette. Und die Erfahrung zeigt: Lieferkettentransparenz erreichen Sie nicht von heute auf morgen – das ist ein längerer Prozess. Daher: Jetzt schon Fragebögen ausschicken, Assessments durchführen und einen Überblick über die Lieferkette erhalten – am besten direkt über ein zentrales Tool wie den VERSO Supply Chain Hub.

Unsere Bonus-Tipps:

Zuletzt haben wir noch zwei Bonus-Tipps für Sie: Wie sollte der Prozess beim Erstellen des Nachhaltigkeitsberichts optimal ablaufen? Der Guide mit 7 Schritten zum Nachhaltigkeitsbericht hilft Ihnen.

Und wenn Sie tiefer in die CSRD-Berichterstattung eintauchen wollen, haben wir einen umfassenden Leitfaden für Sie: CSRD-Praxisleitfaden.

* Bei diesen Informationen handelt es sich um redaktionell zusammengefassten Content, der nicht als Rechtsberatung zu verstehen ist. VERSO übernimmt keine Haftung. 

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Die Geschichte des Nachhaltigkeitsberichts beginnt in den 1980er Jahren – damals gab es die ersten freiwilligen Umweltberichte. Seitdem hat sich enorm viel getan – bis hin zu einer Berichtspflicht.
20.08.2024

The history of the sustainability report: how it has evolved

The history of the sustainability report begins in the 1980s, when the first voluntary environmental reports were published. A lot has happened since then – right up to mandatory reporting. Read about the milestones and drivers that have shaped the ESG report and how the reports have developed in terms of depth and quality.

History of the sustainability report from 1980-2000: The era of environmental reports

The history of the sustainability report goes back to the 1980s.
But for the introduction to this blog article, let’s go back a little further.
This will help us to understand why the topic of sustainability and ESG suddenly became so popular.
Let’s transport ourselves back to the early 1970s, so to speak.
The world was characterized by rapid change and far-reaching social, economic and political developments.
The Cold War dominated international politics.
The oil crisis made people aware of their dependence on fossil fuels and their finite nature.
Economic growth and industrialization continued.
At the same time, however, environmental conditions deteriorated, for example due to polluted air and water.
It was precisely at this time that a book was published that attracted worldwide attention.
The title: “The Limits to Growth”.
It was published by the Club of Rome, an association of scientists, economists, business people and former politicians.
This was a turning point.
The Club of Rome played a central role in ensuring that the issues of environmental awareness and sustainability were recognized globally for the first time.
But here we need to put the brakes on: not everything changed immediately.
Awareness was only gradually followed by action.
But there have already been the first Forerunner of the sustainability report.
In the 1980s, chemical companies published so-called environmental reports on their environmental activities.
These were voluntary and mainly served to improve their image, as the industry was subject to strong criticism.
In the 1990s, small and medium-sized enterprises (SMEs) followed suit and became involved in environmental issues.

However, the reports of the time were still a decade away from the holistic approach of today’s sustainability reports.
Only then did the consideration of all ESG aspects – i.e. environmental, social and corporate governance – become established.
Before we continue our journey through time, let’s take a look at a few highlights from the years of environmental reports:

  • 1979: The first world climate conference under the auspices of the UN takes place in Geneva.
  • End of 1980: Many chemical companies publish environmental reports.
  • Early 1990: Some small and medium-sized companies follow suit and also publish environmental reports for marketing purposes.
  • 1995: With the introduction of EMAS, more and more environmental declarations are drawn up (equivalent to environmental reports).

The challenge of the first sustainability report

A company’s first ESG report is always particularly time-consuming.
We have created a practical guide for your first sustainability report.
You will be guided step by step through the process of creating a meaningful sustainability report.

History of the sustainability report from 2000-2010: Major corporations report

Our journey through the history of sustainability reporting continues with the turn of the millennium.
Compared to today, the attention paid to sustainability and ESG was manageable.
But there were important developments that brought it into the national and international spotlight.
The Kyoto Protocol was signed in 1997 and came into force in 2005.
It was the first international agreement to set binding targets for reducing greenhouse gas emissions.
In 2002, Germany, like other countries, adopted a “National Sustainability Strategy”. In addition to public interest, new technologies also gave the topic of sustainability a boost.
At the turn of the millennium, wind power became the most important of all renewable energies.
Ten years later, it was replaced at the top by solar energy.
The overall advance of all renewable energies was unstoppable.
While the topic of sustainability itself gained in importance, this did not yet have a major impact on ESG reporting.
Until 2010, it was mainly large companies that published a voluntary sustainability report – they recognized the increasing attention for the topic.
However, two events provided a significant impetus here.
The Global Reporting Initiative (GRI) published its first guidelines.
They provided companies with a framework for reporting on environmental, social and economic aspects.
Over the years, the guidelines were further developed into the GRI Standards (from 2016).
The topic of sustainable finance also emerged.
Special indices were created with companies that act more sustainably.
Before the history of sustainability reports really picks up speed, let’s take a look at the most important milestones from this period:

  • 1999: The GRI guidelines are published, at the same time the topic of sustainable finance gains in importance.
    The era of environmental reports is over and social and economic aspects are increasingly included in sustainability reports.
  • 2000: The non-profit organization Carbon Disclosure Project (CDP) is founded.
    Its aim is for companies to publish environmental data such as greenhouse gas emissions and water consumption, and it now manages the largest database of its kind in the world.
  • 2003: The first statutory reporting obligation in Europe comes into force with the EU Modernization Directive.

History of the sustainability report from 2014-2019: boom in frameworks

A veritable boom in ESG reporting regulations began in 2010.
This was accompanied by the development of numerous reporting standards and frameworks that offered companies a standardized method for disclosing sustainability aspects.
As a result, reports became more standardized and clearer and transparency increased.
A holistic view of sustainability was anchored in the standards.
Typically, the environmental aspects were CO2 emissions, energy consumption and waste.
Social aspects included working conditions, human rights and communities.
Governance covered topics such as corporate management and ethical business practices.
Companies began to define and measure their sustainability goals and progress more clearly.
Many companies realized that sustainable practices are not only good for their image.
They can also bring economic benefits, such as cost savings, risk reduction and an improved competitive position.
You can read about the business value that sustainability can bring in the blog post“Why is sustainability important for companies?”. As this decade draws to a close, we would also like to look at a few highlights.
This time it’s about important frameworks and regulations:

  • 2014: The EU Non-Financial Reporting Directive NFRD (predecessor of the CSRD) and its German implementation law CSR-RUG (followed in 2017) come into force.
    This means that large listed companies with certain criteria, such as over 500 employees, are required to report.
  • 2016: The UN’s Sustainable Development Goals, the 17 SDGs, come into force and have been a popular framework for reports ever since.
  • 2017: The TCFD framework is published.
    It provides good recommendations for reporting on the effects of climate change, particularly for the financial sector and capital market-oriented companies.
  • 2018: Another framework: the SASB standards.
    Today, they are part of the ISSB, which creates standards for global comparability.

By the way: If you need an overview of standards and frameworks, take a look at our factsheet.

CSRD beyond bureaucracy: potential and opportunities

Even if the CSRD is primarily a bureaucratic obligation and entails many requirements, it also conceals valuable opportunities for business.
Read our blog article to find out what these are.

History of the 2019-2024 Sustainability Report: The EU and the Green Deal

The story of the sustainability report is now slowly coming to an end.
But only in this blog post.
A lot will certainly happen in this area in the coming years.
However, we don’t want to speculate, but rather take a closer look at what has happened since 2019.
The initial situation: there was a reporting obligation.
However, this only affected around 500 companies in Germany.
Companies had some freedom in the information they provided.
The main criticism was the poor comparability.
The new approach: With its Green Deal, the EU not only wanted to optimize and standardize ESG reporting, but also drive forward the entire sustainable transformation of the economy.
The central goal: Europe will be the first climate-neutral continent by 2050.
In order to implement this ambitious plan, the EU has put together a comprehensive package of directives and measures.
These included, for example, the Corporate Sustainability Reporting Directive (CSRD) and the European Supply Chain Directive (CSDD).
As part of the CSRD reporting obligation, a standardized European framework, the ESRS, was even developed for the first time, which provides companies with clear guidelines regarding content and form.
Here is an overview of important regulations from recent years:

  • 2019: The EU Green Deal is adopted.
  • 2020: The EU taxonomy applies and defines which economic activities can be classified as sustainable.
  • 2022: The CSRD is adopted and gradually increases the number of companies subject to reporting requirements from 2024 to around 50,000 in Europe and around 15,000 in Germany.
  • 2023: The German Supply Chain Act LkSG comes into force and requires companies to submit a report on sustainability in their supply chain.
  • 2024: The European supply chain law CSDDD is passed.
    The reports are to be submitted together with the CSRD report, thus further expanding the content of the sustainability reports.
1980-2000: Die Ära der Umweltberichte
Bis 2010 haben dann hauptsächlich große Unternehmen berichtet, die bereits einen zunehmend Druck, sich des Themas Nachhaltigkeit langsam anzunehmen, verspürt haben. Daran war besonders stark die Global Reporting Initiative und das Aufkommen des Themas Sustainable Finance beteiligt. Die wichtigsten Meilensteine aus der Zeit:

1999: Die GRI-Leitlinien werden veröffentlicht, zeitgleich gewinnt das Thema Sustainable Finance an Bedeutung. Die Ära der Umweltberichte ist damit vorbei und es fließen zunehmend soziale und ökonomische Aspekte in die Nachhaltigkeitsberichte ein.
2000: Die Non-Profit-Organisation Carbon Disclosure Project (CDP) wird gegründet. Sie hat das Ziel, dass u.a. Unternehmen Umweltdaten wie THG-Emissionen sowie Wasserverbrauch veröffentlichen, und verwaltet inzwischen die größte Datenbank dieser Art weltweit.
2003: Mit der EU-Modernisierungs-Richtlinie tritt die erste gesetzliche Berichtspflicht in Europa
in Kraft.
Seit 2010 gibt es einen regelrechten Boom an Regularien, die Unternehmen dazu veranlassen, über Nachhaltigkeit in all ihren Aspekten zu berichten. Mit den Regularien wurden auch zahlreiche Standards und Frameworks entwickelt, die Unternehmen bei dem Projekt Nachhaltigkeitsbericht helfen. Wir haben einige wichtige Frameworks und Regularien herausgegriffen:

2014: Die EU-Richtlinie zur nicht- finanziellen Berichterstattung NFRD (Vorgänger der CSRD) und ihr deutsches Umsetzungsgesetz CSR-RUG gelten. Damit werden große börsennotierte Unternehmen mit bestimmten Kriterien, wie etwa data-lazy-src=

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    Sonnenstrahlen brechen durch Wolken hindurch – Symbolbild für die Chancen, die die CSRD bringt, auch wenn sie erst einmal wie belastende Bürokratie wirkt
    07.08.2024

    Why the CSRD is more than bureaucracy

    Despite the many requirements, working on the CSRD report creates a profound awareness of genuine sustainability. Even if the CSRD is primarily a bureaucratic obligation, it also conceals valuable opportunities for business. Read this article to find out what these are.

    The first companies have already published their CSRD report, and many more have yet to do so.
    In Germany alone, around 15,000 companies are affected by the new EU directive on sustainability reporting.
    And if we look a little further: Across Europe, a total of around 50,000 companies will have to report in accordance with the CSRD in the coming years.

    What is the aim of the CSRD?

    The CSRD is primarily intended to improve the transparency and comparability of sustainability reports, but also to close gaps in previous reporting obligations.
    To understand this, it helps to look back at the past of sustainability reporting.
    Sustainability reporting used to be voluntary for companies, was subject to no or only a few rules and often ended up as a kind of marketing brochure.
    The first EU directives then put a stop to this.
    However, the CSRD now goes one step further.
    On the one hand, a whole host of companies are affected by the new reporting obligation, from small and medium-sized enterprises to large corporations.
    Across Europe.
    And in some cases even beyond the EU.
    On the other hand, there are stricter rules: All disclosures must now be verifiable and signed off by auditors. The CSRD also requires significantly more and more in-depth quantitative and qualitative data.
    This should make the reports more comparable.
    In this way, the EU wants to drive forward the sustainable transformation of the economy.
    At the same time, the CSRD is a sensible response to the growing expectations of investors, customers and society as a whole.
    Companies are increasingly being held accountable for their sustainability performance – and more and more often, sustainability efforts also form the basis for economic success.
    In a nutshell: CSRD makes sustainability transparent and comparable, creating the basis for us to steer our economy towards a more sustainable future in a targeted manner.
    “That sounds all well and good,” you may be thinking, “but what’s the point of all the pink clouds if I’m sitting here at my desk and can’t see sustainability for all the data?”

    Awareness arises from bureaucracy

    PwC recently published a study according to which the majority of the companies surveyed were confident: Yes, we will be ready for our new reporting obligations by the deadline.
    The respondents were mainly listed companies with an annual turnover of over one billion.
    However, we know from our own experience that small and medium-sized enterprises in particular are groaning in the face of the work involved in preparing and implementing the CSRD.
    They tend to have mixed feelings about the CSRD.
    “The CSRD is just another useless bureaucracy that will create a burden, stress and work and tie up considerable resources, but ultimately won’t change anything at all.”
    This and similar criticism of the new directive is often voiced.
    And yes – of course there is a lot of bureaucracy behind the new laws and reporting obligations relating to sustainability.
    A lot of data has to be collected, a lot of time is spent on preparation and implementation and a lot of employees are involved.
    However, in our work with our customers, we see time and again that anyone who writes sustainability reports and takes an in-depth look at the topic of sustainability also recognizes the potential of CSRD.

    Practical guide: Fit for the first CSRD report

    Our practical guide with checklist makes it easier for you to get started and prepare for the CSRD and ESRS.

    More than just a bureaucracy monster: 6 potentials of CSRD for your company

    Despite (or perhaps because of!) the many requirements, working on the CSRD report creates a profound awareness of genuine sustainability.
    So even if the CSRD is primarily a bureaucratic obligation, it conceals valuable insights and potential.
    And let’s take a look at them now.

    1. the CSRD promotes a better understanding of one’s own risks and opportunities

    Before the actual CSRD report is prepared, the double materiality analysis is carried out.
    Here you determine:

    • How do sustainability aspects influence your company?
    • What impact does my company have on the environment and society?

    Background: The ESRS, the CSRD framework, lists over 1,000 possible data points for the report.
    In the end, however, only selected data points such as ESRS 2 and those whose associated impacts, risks and opportunities (IROs) you have determined to be material are required to be reported.
    On the one hand, the double materiality analysis gives you clarity as to what belongs in your CSRD report.
    On the other hand, it also gives you a very helpful picture of how your company relates to the environment and society. You also get a crystal-clear overview of the risks your company could still face – where undiscovered opportunities for the future of your company lie dormant – and how your company is developing.
    Find out more in our article “The double materiality analysis in 7 steps”.

    2. the CSRD brings economic benefits, supports innovation …

    The majority of decision-makers surveyed in a Noerr study assume that ESG will bring about change in the company.
    However, the transformation of business models in turn requires comprehensive adjustments to product development, internal processes and management.
    This is where the wealth of data you collect and analyze for CSRD provides useful insights.
    Where are resources still being wasted without this being noticed?
    Which processes that “we’ve always done this way” could be optimized – and thus promote not only sustainability but also efficiency?
    Where do we need to rethink in order for the sustainable transformation to succeed?
    These are just a few situations in which ESG data management lays the foundation for a sustainable future.
    Ideally, you should not write your CSRD report just for the sake of it, but rather take something away from it for the success of your company.

    3. … and strengthens the resilience of your company

    Let’s take a concrete example: ESRS E1, the “climate change standard”.
    Here you have to report, among other things,

    • how your company has a positive and negative impact on the climate,
    • which climate protection measures you implement,
    • what risks and opportunities arise from climate change,
    • and how to adapt your company to climate change.

    The smaller the company, the greater the likelihood that the issue of climate change will not necessarily be a high priority due to time constraints – i.e. it will be postponed for the time being without the CSRD.
    However, the first consequences of climate change are already making themselves felt.
    And will occur more frequently in the future.
    Heavy rain, floods, heatwaves, droughts and fires can paralyze production facilities, lead to staff absences, cause supply chain delays or destroy transport routes.
    55% of managers surveyed in Germany in a Capgemini study estimate that climate change will cause the majority of operational disruptions in the coming years.
    So it only makes sense to look at what climate change means for your company and how you can counteract it.
    And in the course of CSRD, you approach such and similar considerations in a very structured way.

    The ESRS standards at a glance

    With the CSRD, the EU is also introducing uniform European standards.
    The European Sustainability Reporting Standards (ESRS) are intended to make sustainability reports more meaningful and comparable.
    All information can be found in the whitepaper.

    4. solid sustainability reports create trust

    Investors and other stakeholders are now looking very closely at what your company is doing in terms of sustainability.
    Sustainability reports are a great way to communicate your status quo and your ambitions in this area.
    The best way to do this, however, is with a reporting standard that specifies uniform requirements for all companies concerned in order to ensure maximum comparability.
    As we wrote at the beginning, CSRD transforms sustainability reports into transparent and, above all, verifiable documentation of your sustainability journey.
    And if we want to look at things from a negative perspective: Intentional and grossly negligent errors in the CSRD report are punishable by, among other things, “naming and shaming” – i.e. public disclosure.
    If your company violates its CSRD reporting obligations or attempts to falsify data, this can ruin its reputation and trust.
    In this respect too, it is therefore worth seeing the CSRD as an opportunity and implementing it conscientiously.
    You can find more information on the possible sanctions in our article “The cost of mistakes in reporting and implementing sustainability.”

    5 The CSRD report as a repository for fact-based sustainability communication

    Once you have identified stakeholders, determined opportunities and risks, set up strategies and collected ESG data from all possible areas as part of your CSRD obligation, you have one thing in addition to the report: a very useful repository of information.
    This, in turn, is ideal for any sustainability communication outside of the report.
    After all, this is also becoming increasingly important.
    Here we would like to quote a Capgemini survey once again: 77% of consumers surveyed are changing their purchasing behavior in favor of more sustainability.
    66% are even specifically looking for sustainable products.
    Conversely, 36% of the companies surveyed also stated that Our customers are not interested in sustainability!
    This shows a major perception gap that needs to be closed.
    The best way to do this is with comparable reports that are checked by a third party (you guessed it: the CSRD…).
    This is what 34% of consumers surveyed in a Deloitte study would like.
    Fact-based sustainability communication is also beneficial when it comes to recruiting talent and employee satisfaction.
    According to the EIB Climate Survey 2023, 56% of people surveyed value an employer that thinks and acts sustainably.
    According to a Gartner survey, a strong ESG culture even boosts employee engagement by up to 43%.

    6 ESG data facilitates access to credit

    It’s not just investors and the public who are demanding ESG measures, but also banks and credit institutions.
    Just as a disability insurer is interested in whether you prefer to solve crossword puzzles or skydive in your free time when taking out insurance, financial institutions are now increasingly looking at ESG risks when granting loans.
    The list of questions is based on the CSRD, among other things.
    This means that if you are already collecting ESG data for the CSRD anyway, you will have it to hand more quickly when applying for financing.
    Read more about this in our article “ESG in financing: This data decides on loans”.

    Conclusion: CSRD is worthwhile in many respects – and it doesn’t have to be complicated at all

    Let’s summarize once again.
    CSRD helps you to identify risks and opportunities for your company in a targeted manner.
    It provides your company with economic advantages and can even become a driver of innovation.
    Furthermore, it strengthens your company’s resilience in the long term if you take a close look at sustainability.
    Externally, CSRD promotes the trust of your stakeholders and serves as a basis for general sustainability communication, which in turn appeals to customers and employees.
    Last but not least, the data once collected will help in future when granting loans.
    It’s exciting to see the wide-ranging effects of this report, which seems so dry at first, isn’t it?
    And the best thing is that CSRD doesn’t necessarily have to be a nerve-wracking challenge.
    With software and advice at eye level, VERSO will guide you step by step through the CSRD process.
    For example, with our new AI-supported module for audit-proof double materiality analysis.
    Or with our all-in-one solution for ESG management and ESG reporting – including carbon footprint and supply chain transparency.
    Feel free to contact us!

    * This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

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    Earth Overshoot Day
    18.07.2024

    Earth Overshoot Day:
    3 tips for sustainable resource management

    Earth Overshoot Day marks the day on which we humans have used up all the natural resources we are entitled to for the year. Earth Overshoot Day shows us that we must take action! In this blog post, you will find lots of information about Earth Overshoot Day as well as three tips for more sustainable resource management in your company.

    Let’s imagine that: At the beginning of August, we have already spent our entire annual salary.
    We should now be planning our big summer vacation – but no, there’s not a single cent left.
    From now on, we’ll have to live on credit and somehow get by until the end of the year.
    Not a nice idea, is it?
    The scary thing is: This is exactly how we are treating our planetary resources – and this is what Earth Overshoot Day stands for.
    In 2024, Earth Overshoot Day falls on August 1.
    All the natural resources that we humans are actually entitled to this year have been used up.
    From this day onwards, we will be living at the expense of the future – for another 5 months.
    A bitter day?
    Absolutely, there’s no denying it.
    But it doesn’t help to bury our heads in the sand.
    Let’s use the day as a reminder: let’s act now and push Earth Overshoot Day as far back as possible!
    Following the information about Earth Overshoot Day, this blog post therefore contains three tips on how you can make your company’s resource management more sustainable.
    These simple measures, which every company can implement, actively contribute to environmental and climate protection.  

    Definition: What is Earth Overshoot Day?

    Earth Overshoot Day has been calculated since 1971.
    In German, it is also known as Earth Overshoot Day or World Exhaustion Day.
    It marks the date on which humanity’s demand for ecological resources and services in one year exceeds what the earth can regenerate in that year.
    This is how the WWF describes it, for example.
    The overshoot days are calculated globally and nationally – the total global consumption of resources is used or the consumption of a specific country is extrapolated to the global availability of resources.
    The calculations for the overshoot days are based on the concept of the ecological footprint.
    It describes the biologically productive area on earth that is necessary to enable a person’s lifestyle and standard of living.
    In short, it documents how much nature we have and how much we need.
    Earth Overshoot Day is calculated by the Footprint Data Foundation, York University and the Global Footprint Network.

    Why is sustainability important for your company?

    Sustainability is becoming increasingly important – not only for private individuals, but also for companies.
    We use facts and figures from the year 2024 to show why you should not view sustainability as a mere compulsory exercise.

    Earth Overshoot Day earlier and earlier

    It’s no big surprise: Earth Overshoot Day is always earlier, and it has steadily moved forward over the past 50 years.
    Since the 2010s, however, it has settled around the beginning of August.

    Der Earth Overshoot Day, auf deutsch auch Erdüberlastungstag oder Welterschöpfungstag genannt, fällt 2024 auf den 1. August. Der Tag zeigt, wann wir Menschen alle natürlichen Ressourcen, die uns für dieses Jahr zur Verfügung stehen, aufgebraucht haben. Er ist seit 1971 kontinuierlich früher. © Global Footprint Network www.footprintnetwork.org

    It all started in 1971: the first Earth Overshoot Day came as a worrying Christmas present under the Christmas tree, so to speak.
    It fell on December 25, but at least we were still almost on target.
    However, the consumption of resources continued to increase and so did Earth Overshoot Day.
    As early as 1974, it moved to November, from 1987 to October and in 1999 it was in September for the first time.
    Since 2005, Earth Overshoot Day has been in August and is steadily approaching July.
    In 2018 and 2022, Earth Overshoot Day was already on August 1, the earliest date to date.
    Each time it was a little later the following year.
    In 2024, it will fall on August 1 for the third time.
    The coronavirus pandemic and specifically the year 2020 represent a notable break in the statistics.
    Global lockdowns and restrictions, the decline in production and transportation had a drastic impact on people and the economy.
    But energy and resource consumption and CO2 emissions also fell significantly and the Earth Overshoot Day slipped back to August 16.
    However, the effect did not last long and was no longer strongly felt the following year.
    If you follow the development of Earth Overshoot Day closely, you will have noticed the fluctuations.
    From time to time the day is later than in the previous year or it is adjusted retrospectively.
    This can also be related to optimizations in resource consumption.
    However, the reasons are usually more precise calculation methods and improved data sets.

    CSRD: New requirements for sustainability reports

    As part of the Green Deal, the EU is driving forward numerous measures for sustainable transformation – including the CSRD, the Corporate Sustainability Reporting Directive.
    You can find all the details in our factsheet.

    Overshoot Day for Germany

    Calculated for Germany alone, Overshoot Day is even earlier.
    In 2024, it already fell on May 2.
    This means that if every country consumed resources like we do in Germany, everything the planet can offer and regenerate would already be used up by that day.
    In other words, if everyone lived like we do, we would need three Earths.
    Compared to previous years, not much has changed with regard to Germany’s Overshoot Day.
    It is consistently at the beginning of May – except for the outlier in 2020 due to coronavirus.
    So we haven’t got worse in Germany, but we haven’t really improved either.

    Der Country Overshoot Day für Deutschland ist 2024 auf den 2. Mai gefallen. Würden alle Menschen auf der so leben wie wir in Deutschland, wären an diesem Tag alle natürlichen Ressourcen, die uns eigentlich zur Verfügung stehen, aufgebraucht. Das bedeutet: Wir bräuchten drei Erden. © Global Footprint Network www.footprintnetwork.org

    However, it is also worth taking a look at other countries for comparison.
    The three earliest Country Overshoot Days in 2024 were in:

    • Qatar: February 11
    • Luxembourg; February 20
    • United Arab Emirates: March 4

    The three countries for which the respective Country Overshoot Day was calculated for the latest date are:

    • Guinea: December 27
    • Moldova: December 28
    • Kyrgyzstan: December 30

    And to conclude the comparison, let’s take a look at three G12 countries:

    • USA: March 14
    • France: May 7
    • China: June 1

     

    What Earth Overshoot Day means for your company

    Earth Overshoot Day is first and foremost a wake-up call to humanity.
    The initiators want to show that our actions can lead to unpleasant consequences.
    And these consequences will also be felt by companies, or are already being felt.
    One example is extreme weather events such as droughts or floods, which are occurring more frequently and more intensively as a result of climate change.
    They show how vulnerable global supply chains are.
    The consequences are often crop failures, shortages of raw materials or blocked transport routes.
    All of this is already leading to bottlenecks in supply and production – and the trend is currently increasing rather than decreasing.

    Practical guide to CSRD

    Our practical guide, including a checklist, will help you prepare for CSRD reporting.
    Find out what challenges there are and how you can overcome them.

    3 tips for sustainable resource management in your company

    Resource consumption affects us all.
    Even as private individuals, we can make a difference.
    The WWF lists various ways for end consumers to live more sustainably and thus push back the date of World Exhaustion Day.
    “Buy green, consume less and eat less meat” is the succinct but effective recommendation for private individuals.
    However, one of the biggest levers for saving resources worldwide is the economy.
    Anyone who now thinks that sustainability is just something for a clear conscience or regulatory reporting obligations is mistaken: sustainable management brings business value, creates competitive advantages and strengthens the future viability and resilience of companies.
    Many measures can save you money.
    These three tips will help you get closer to sustainable resource management:  

    The three big Rs – Reduce, Reuse, Recycle

    One of the most effective methods for establishing sustainable resource management in a company is the circular economy.
    It starts with the big three Rs: Reduce, Reuse, Recycle.
    It is about reducing the use of resources and materials, reusing products and reusing the materials from one product in another product.
    One approach is an internal recycling process in which production waste is collected, processed and reused.
    This can significantly reduce waste and thus the amount of raw materials required.
    In addition, recycled or bio-based materials can be ordered from suppliers.
    Resources can also be saved during shipping.
    For example, packaging that can be reused.
    But also in transport itself.
    There are special pooling systems for pallet cages and Euro pallets – a reusable system for load carriers, so to speak.
    Empty runs by truck should also be avoided.
    But savings can also be made quite simply in the office.
    For example, in water or energy consumption.
    Refillable printer cartridges produce less waste.
    Or you can switch completely to a paperless office.
    Incidentally, the three big Rs are just the beginning: the circular economy goes a big step further and focuses on the 10 Rs. The concept and many other interesting facts about the circular economy can be found in this blog post “How the circular economy works and what it can achieve in Germany“.  

    Save energy and use it more efficiently

    Energy is an important resource for every company – which is why it makes sense to start here.
    The range of measures to save energy and use it efficiently is very broad.
    It starts with obvious and simple steps:

    • Use LED instead of halogen lamps
    • Install motion detectors for the lighting
    • Adjusting the brightness of screens downwards
    • Use laptops instead of desktop computers

    You should also take a systematic approach here – an energy management system in accordance with ISO 50001, for example, is helpful.
    Although individual measures can lead to savings, they can also cause problems in other areas.
    Therefore, look at the big picture and start looking for energy guzzlers.
    Air conditioning, heating and ventilation often offer opportunities for optimization.
    Important: Also check whether there is a state subsidy for the replacement.
    Or have you ever thought about hosting your website?
    With tools such as the Website Carbon Calculator, you can calculate the CO2 footprint of your company website in no time at all.
    In the blog post “How to communicate your sustainability on your website“, we provide simple tips under point 6 on how to make your website more sustainable without any design or coding knowledge.
    Another way to save energy: your company can become an electricity producer itself.
    Photovoltaic systems are not only suitable for building roofs, but also for parking lots.
    Not only do you generate green electricity and cover part of your energy requirements, you also create a source of shade.
    You can also participate in local wind farms.  

    Sensitize and train employees

    Employees are the key to a company’s success.
    This applies not only to purely financial success, but also to the implementation of ESG initiatives.
    It is therefore important to sensitize the entire team to sustainable action and train them accordingly.
    This firmly anchors sustainability in the corporate culture.
    During workshops, you should emphasize waste separation and avoidance and give tips on saving water and energy.
    If everyone, or at least many people, adapt their behavior a little, a lot can be achieved.
    One question that everyone should ask themselves, for example: Do I really need to print out this document or will it suffice in digital form?
    One major lever is the transport sector.
    Switch to public transport for business trips within Germany.
    At the same time, your company can reward environmentally friendly behavior – for example with rental bikes or a subsidy for public transport.  

    Is your company doing enough in terms of sustainability?
    Here’s how to find out

    A sustainability report is a good measurement tool for companies in terms of ESG and implementation.
    It allows you to determine the status quo and see your development over the years.
    On this basis, you can develop or adapt measures and targets.
    The CSRD reporting obligation may even mean that your company is obliged to prepare a sustainability report.
    VERSO provides you with comprehensive support for this task.
    With the VERSO ESG Hub, you can collect all relevant data and create a meaningful sustainability report.
    The Climate Hub also calculates the corporate carbon footprint. And the VERSO Sustainability Experts will support you throughout the entire process. Would you like to acquire even more knowledge about ESG and sustainability yourself? Then it’s worth visiting our VERSO Academy. In the online courses, you and your colleagues can learn all about sustainability in the company – now with a brand new course for specialists and managers.  

     

    * This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

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    Sign up and receive regular news about:

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    • Individual advice from the VERSO experts
    • Developed with expertise from 12+ years of sustainability management
    • Trusted by 250+ customers

    Get to know the software!

    Nuvia Maslo im neuen Kurs der VERSO Academy, Fit for Sustainability
    09.07.2024

    What specialists and managers should know about sustainability

    ESG regulations, sanctions and real environmental threats are putting companies under increasing pressure. This means that sustainability must now be implemented in companies.

    And in such a way that it does not become a bureaucratic monster. Because sustainability is not a spoilsport, but can create real business value. Read here to find out how this works and what you need to know as a specialist or manager.

    Sustainability starts with specialists and managers

    Sustainability ambitions must come from the management level.
    Then it can create real business value with competitive advantages, cost savings and resilience.
    At management level, the importance of the topic must be understood, priorities set and strategic decisions made for sustainability.
    For specialists and managers, this means getting to grips with the topic of sustainability, acquiring knowledge and at least understanding the basics.
    We give you 4 tips to help you successfully drive forward the sustainable transformation in your company.

    Training tip: The new ESG course “Fit for Sustainability”

    Learn everything that specialists and managers need to know about sustainability in our “Fit for Sustainability” online course.
    The early bird phase is currently still running – register here for a 25% voucher!

    4 tips for starting the sustainable transformation

    1. find out about the role of companies in sustainability

    Climate change is real.
    The first effects are already being felt.
    Extreme weather events are more extreme and occur more frequently.
    There is a lot to be done to ensure that this planet remains liveable for future generations.
    But what role do companies play in this?
    Where are the most serious problems and how can we solve them?
    You should be clear about this before you put sustainability on the agenda.
    Because only then will you be able to win over your employees to the issue and only then will you have the know-how to implement measures with real impact.

    2. familiarize yourself with the most important ESG regulations

    With the Green Deal, the EU is bringing many laws and directives to the table that oblige companies to be more sustainable.
    These include the CSRD reporting obligation, the CSDDD supply chain law and special regulations such as the EU Taxonomy, the SFDR regulation for the financial sector, the CBAM carbon border adjustment mechanism and the EUDR deforestation regulation.
    In addition, there are also laws in Germany that require companies to deal with sustainability at all ESG levels, such as the German Supply Chain Act LkSG.
    Of course, you don’t need to know all the directives and laws in detail.
    However, an overview of the implementation deadlines, what needs to be done and which roles are required in the company is essential.

    3. communicate sustainability transparently and without greenwashing

    Regardless of whether you have to publish a sustainability report due to the CSRD obligation or would like to report on your sustainability activities voluntarily: Communicating sustainability is a fine line between correct and misleading.
    What is communicated can quickly verge on greenwashing, and the CSRD also requires very comprehensive statements that have to be watertight.
    Successful and legally compliant communication requires a good understanding of sustainability, of the company’s own activities, of sustainability communication and of the regulatory framework.

    4. develop a sustainability strategy and use it to leverage potential for your company

    The topic of sustainability and the associated laws and guidelines are often referred to as a “bureaucracy monster”.
    But that doesn’t have to be the case: take a strategic approach to the topic and integrate sustainability firmly into your corporate strategy.
    This will open up real opportunities for your company.
    Because sustainable management makes your company resilient and fit for the future and opens up new business models and competitive advantages.

    How do you get started? With knowledge building!

    Now it’s time to get started!
    At the VERSO Academy, we have the ideal course for you to gain knowledge on all these topics: You will efficiently learn everything important that specialists and managers should know about sustainability in the shortest possible time – tailored to your needs and potential.
    After the training course, you can get started with the sustainable transformation straight away. Sounds good?
    Get the
    25 % Early bird discount – redeemable as soon as the course is bookable:

    * This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

    Subscribe to our newsletter!

    Sign up and receive regular news about:

    • Pragmatic all-in-one solution for ESG reporting, climate and supply chain management
    • Individual advice from the VERSO experts
    • Developed with expertise from 12+ years of sustainability management
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    Get to know the software!

    Foto eines Pflanzensprosses, der sich spiralenförmig entrollt
    10.06.2024

    How the circular economy works and what it can achieve in Germany

    Circular economy and circular economy are terms that you come across more and more often in the context of sustainability. What is behind them, why is the circular economy presented as an important system change and what would it look like in everyday life?

    Circular Economy and circular economy are terms that you come across more and more frequently in the context of sustainability.
    What is behind them, why are
    Circular Economy as an important system change and what would that look like in everyday life?
    We have for you
    a brief insight with the most important topics compiled.
    One
    really small. Dbecause the whole is so ramified and comprehensive that we could probably write a whole book about it.n couldnten

    Circular economy and circular economy – what are they?

    Circular economy and circular economy – what are they?

    Let’s start with a classic definition.
    Because – spoiler – the terms
    Circular economy” and Circular Economy” are often used synonymously, but are strictly speaking different.

    Circular Economy

    Circular economy describes an economic model in which resources and products are used for as long as possible within a closed cycle.
    Once they have reached the end of their useful life, they are not simply disposed of, but returned to the cycle – i.e. made usable again.

    The reference point is ISO 59004:2024.
    It describes the basic principles and concepts of the circular economy, but also provides assistance for implementation in the company.
    Circular economy is defined here as:

    “Economic system that takes a systemic approach to maintaining the cycle of resources by recovering, preserving or enhancing their value while contributing to sustainable development.”

    The WWF‘s definition is somewhat clearer and more direct:

    Circular Economy [ist] a regenerative system, powered by renewable energy, which replaces the current linear industrial model Take – produce – dispose replaced.
    Materials are instead retained in the economy, products are shared, while waste and negative impacts are avoided.
    CE creates positive effects and benefits for the environment and society and works within planetary boundaries.
    It is made possible by rethinking the current understanding of growth and consumption.”

    A helpful overview of all relevant standards relating to the circular economy can be found at the German Institute for Standardization (DIN).

    For companies subject to CSRD, ESRS E5 (Resource use and circular economy) is also important in this context.

    The ESRS at a glance

    How are the ESRS structured, what information is required and how does double materiality work?
    Our white paper explains it clearly!

    Circular economy

    Circular economy means exactly the same thing in theory.
    In Germany, however, the circular economy actually only means avoiding waste:
    The circular economy within the meaning of [the Circular Economy Act] is the prevention and recycling of waste.

    If we talk about the circular economy here in Germany, the correct term would be “circular economy”.
    After all, we like to make life difficult for ourselves with unwieldy terms.

    However, when the term “circular economy” is used at EU level (e.g. on the website of the EU Commission or EU Parliament), it always refers to the circular economy in the true sense of the word.

    Why do we need a circular economy?

    Global consumption of raw materials has tripled since 1970.
    We live and do business as if we had unlimited resources at our disposal.
    Earth Overshoot Day – the day on which all resources are used up globally for the year – is taking place earlier and earlier.

    What is no longer needed is disposed of and replaced by something new.
    And then it disappears from the scene for us.
    But it ends up somewhere else.
    Europe exports around 3,000,000 kilograms of plastic waste to countries in the Global South every day.
    This is sometimes referred to as
    “Garbage colonialism” labeled.
    And it doesn’t stop with plastic.
    Growing mountains of old clothes, scrap metal, batteries, tires – our waste is piling up in other parts of the world.

    On top of this comes the extraction of ever more resources for products that are produced in abundance worldwide.
    Far too often, extraction and production go hand in hand with environmental damage and the violation of human rights.

    The CSRD and supply chain directives such as the LkSG, CSDDD, CBAM and EUDR are intended to gradually prevent the latter.
    However, what we actually need is a new economic system that tackles the underlying problems at the root.

    Curtain up for circular economy.

    Linear Economy vs. Recycling Economy vs. Circular Economy – from the 3 Rs to the 10 Rs

    Our current economic system is a one-way street.
    It is therefore also known as
    “linear economy”.
    There are already initial attempts to counteract the high consumption of raw materials and the throwaway mentality.
    The focus here is on
    currently mainly on the so-called 3 Rs:

    • Reduce – Reduce use of resources and materials through greater efficiency in product manufacture/use
    • Reuse – Reuse of products that are still in good condition
    • Recycle – Reuse materials in products of the same or lower quality

    This gives rise to the recycling economy.
    However, recycling only puts a slight damper on things.
    In the end, there is still far too much waste piling up in mountains of garbage.
    Only 7.2 percent of our materials are reused after use.

    Illustration, die Linear Economy, Recycling Economy und Circular Economy gegenüberstellt. Linear Economy führt direkt zur Mülltonne, bei Recycling Economy ist noch ein kleiner Umweg drin und bei Circular Economy dreht sich der Produktlebenszyklus im Kreis; es landet nichts im Müll

    Circular Economy goes a big step further and relies on 10 R:

    • Reduce – Reduce use of resources and materials through greater efficiency in product manufacture/use
    • Reuse – Reuse of products that are still in good condition
    • Recycle – Reuse materials in products of the same or lower quality
    • Refuse Avoid overconsumption by optimizing or innovating products and eliminating products
    • Rethink – Rethinking product use and manufacturing processes
    • Repair – Repair and maintenance of defective/damaged products
    • Refurbish – Refurbishing discarded products so that they can still be used
    • Remanufacture – Reuse of product parts in new products with the same function
    • Repurpose – Reuse of product parts in new products with a different function
    • Recover – Burning materials with energy recovery
    Tabelle mit den 10 R der Circular Economy

    The European Commission also lists 7 very similar pillars of the circular economy:

    1. Sustainable supply chains
    2. Ecodesign of products and services
    3. Industrial and territorial ecology, i.e. cooperation and exchange between companies
    4. Functional economic organization; i.e. sharing the benefits of products with others instead of owning your own products
    5. Responsible consumption
    6. Extend product service life
    7. Recycle

    So much for the theory.
    Now you’re probably asking yourself: what will it all look like in practice?
    After all, a lot has to change for the circular economy to become a reality.
    We need new processes and more durable, fully recyclable materials.
    Not to mention a change in mindset.

    Circular economy in practice

    Action plan for the circular economy and national circular economy strategy

    As part of the Green Deal, the EU 2020 has “Action Plan for the Circular Economy”, which aims to achieve a “carbon-neutral, ecologically sustainable and pollutant-free circular economy” by 2050.
    Initial measures such as the extension of ecodesign regulations, the right to repair and the Green Claims Directive are already in force.

    Your overview of the new Green Claims Directive

    With the Green Claims Directive, the EU now provides a clear framework for sustainability claims.
    Get a clear overview of the new Green Claims Directive and its consequences for your company in this factsheet!

    The “National Circular Economy Strategy (NKWS)” is based on the EU action plan.
    This is intended to create a future framework strategy for measures and targets to implement a circular economy in Germany.
    The German government is working closely with industry and society on this.

    The overarching objectives of the NKWS are:

    • Climate protection
    • Protection of biodiversity
    • Reducing species extinction and environmental pollution
    • Securing the supply of raw materials
    • Reduce GHG emissions

    Model Germany Circular Economy

    As the NKWS is still a work in progress, WWF Germany, together with the Öko-Institut, Fraunhofer ISI and the FU Berlin, has developed a roadmap for the circular economy in Germany – the “Model Germany Circular Economy (MDCE)“.
    This comprehensive paper shows which measures, political strategies, targets and instruments could be used to achieve a circular economy by 2045.

    Here is an overview of the most important findings.

    The advantages of a circular economy compared to business as usual

    • The supply situation is easing for 29 out of 36 critical raw materials, and for 9 raw materials more than 50 percent of Germany’s demand could be reduced or covered
    • A CO₂-equivalent savings of up to 26 percent (186 million tons) are possible
    • We need 27 percent less raw materials (179 million tons), total material consumption is down by 26 percent (329 million tons)
    • We need 30 percent less land (8.5 million hectares)
    • The MDCE scenario could also be used to reduce emissions that are difficult to avoid
    • The modeled circular economy would avoid 26 percent (147 billion euros) of the climate damage costs caused by direct emissions – with indirect emissions 10.7 billion euros

    What is currently hindering the circular economy

    • Passing on environmental costs (externalization)
    • Lack of infrastructure for circular products and processes
    • Lack of investment (e.g. in research and development) for a circular economy
    • Lack of transparency with regard to the transfer of information and data in the value chains
    • Long-term path dependencies due to investments in linear technologies
    • Lack of common standards for circular products

    5 key strategies for implementing a circular economy

    1. Reduce resource flows
    2. Substitute materials
    3. Slowing down resource flows
    4. Intensify product use
    5. Closing resource cycles with high quality

    Consumers, companies and politicians share responsibility

    The circular economy must be considered from two perspectives:

    1. Behavior-based solutions – sustainable design of consumption
    2. Technology-based solutions – on the technical and production side

    The paper emphasizes that the necessary changes in behaviour do not lie solely with consumers.
    Both approaches require
    political and entrepreneurial need for action that goes far beyond information instruments and should be controlled by regulatory and market-based instruments.

    10 guiding political principles for the success of the circular economy

    1. Prioritize absolute reduction of resource consumption
    2. Set binding resource targets along the lines of climate targets
    3. Shaping the structural change triggered by the circular economy with specific policy instruments
    4. Creating conviction for comprehensive CE in social alliances
    5. Understanding education and knowledge transfer as the key to transformation
    6. Setting incentives for a change in values in companies
    7. Expanding the state’s role model function in procurement
    8. Strengthening regional value chains in Germany
    9. Provide financing and research & development for the transformation to a circular economy
    10. Germany must assume greater international responsibility

    Conclusion: We still have a long way to go!

    Looking at our current economic model and the MDCE draft, it is clear that we still have a lot of work to do to achieve a truly sustainable transformation.
    It can only succeed if we all – consumers, companies and politicians – work hand in hand.
    Let’s get started!

    Read more:

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    Gruppe verschiedenster Menschen bei einer Bürofeier
    27.05.2024

    Diversity in companies: Why and how?

    No company can avoid the word “diversity” these days. But diversity is much more than just adding “m/f/d” to a job advertisement. Read this article to find out why diversity is so important in companies, what it actually brings and what you can do to promote diversity in your company in a targeted manner.

    Why do companies need diversity?

    Every person is different

    Let’s start by defining what “diversity” actually means.
    Because – spoiler – diversity is more than just sexual orientation and skin color.
    To be more precise, there are seven dimensions of diversity.
    These are almost unchangeable characteristics that every person has.
    After all, each of us has a different personality and a different history:

    1. Age
    2. Ethnic origin & nationality
    3. Gender & gender identity
    4. Physical & mental abilities
    5. Religion & worldview
    6. Sexual orientation
    7. Social background

    According to the Diversity Charter, these seven diversity dimensions have the greatest influence on whether we feel included or excluded in society.
    In theory, the Basic Law and the General Equal Treatment Act already stipulate that no one should feel excluded.
    Diversity is also important for many companies in the context of sustainability reporting.

    Diversity in the company is surveyed in the ESG report

    Above all ESG regulations, the ESRS – the CSRD reporting framework – has required disclosure of the diversity strategy since 2024.
    ESRS S1 in particular asks how your company lives and promotes inclusion and diversity.

    However, diversity was already an ESG reporting criterion before that.The German Sustainability Code, or DNKemphasizes the importance of diversity and has included it in its 20 criteria for report content.
    Companies must state how they comply with the General Equal Treatment Act.
    They should also show how they promote equal opportunities, pay everyone appropriately, avoid discrimination, make a positive contribution to the integration of minorities and promote the compatibility of family and career.

    Of course, the globally recognized reporting standard of the Global Reporting Initiative (GRI) also deals with the topic of diversity.
    The focus here is primarily on GRI 405.
    Here you report, among other things, on the distribution of gender, age or the proportion of people with disabilities among employees and management.
    There is also GRI 406, which relates to incidents of discrimination and asks how your company investigates or prevents them.

    Decision support: Which ESRS data points are relevant?

    Use our ESRS checklist to filter the disclosure requirements and data points relevant to your sustainability report.

    Diversity in the company as a cross-section of society

    The diversity dimensions also show how different we all actually are.
    If we zoom out to Germany, we get an incredibly diverse picture of society.
    Now a question for you: With this image in mind, is it close to reality if the company is made up of 80% white, 30 to 50-year-old, Christian or atheist, heterosexual men?
    Or would it not be much better, conversely, if a company reflected the diversity of society?

    Advantages of diversity in companies

    Of course that would be much better.
    And there is even solid evidence for this.
    We have compiled a small selection for you below.

    A study by StepStone and the Handelsblatt Media Group shows that a diverse management team boosts employee motivation.
    According to the study, 77% of job seekers are also more likely to apply to companies that are tolerant and diverse.
    Not to mention the fact that your company has access to a much larger talent pool if you value diversity when recruiting.

    The survey also revealed that 80% of respondents see diversity in management as a major positive influence on the economic success of companies.
    One of the reasons for this is that diverse teams bring a wide range of different experiences, perspectives, ways of thinking and problem-solving approaches to the table.
    Incidentally, this also means that decisions are made up to 87% faster – and not only with half as many meetings as in homogeneous teams, but also with 60% better results!

    Diversity in companies is also considered one of the most important drivers of team engagement. Deloitte found in a study that millennials are 83% more likely to be engaged when the company promotes diversity and inclusion.
    No wonder none of the employees feel excluded!

    In short: diversity in the company makes the company more attractive, increases employee satisfaction and productivity – and ultimately strengthens competitiveness.
    According to another Deloitte study, diverse, inclusive companies perform up to 35% better than their competitors.

    Sounds good?
    We think so too.
    But you should be aware of this: If you want to reap the benefits of diversity, you need to promote diversity in a targeted manner.
    Here are a few practical tips from our People team to help you achieve this!

    7 tips for diversity in companies

    1. diversity starts at the top

    Diversity in companies starts in the boardroom.
    Make sure that the management team is diverse.
    This involves obvious criteria such as origin, age or gender, but cognitive diversity also plays a role.
    The management level should also exemplify diversity itself.
    Train your managers to use inclusive language and promote a diverse workforce.

    2. make job advertisements appealing to everyone

    This starts with the classic “m/f/d” or “all genders” reference in the job advertisement.
    You should also include a diversity statement that emphasizes once again that everyone is welcome here.
    Use a gender decoder to check whether men and women feel equally addressed in your job advertisement – because certain words only address one gender.

    Incidentally, it is also interesting to know how men and women read job advertisements.
    Women tend to want to fulfill all criteria and often do not apply if they do not fulfill one criterion.
    So find the right balance in the level of detail in the job description.
    Feel free to encourage applicants with a separate note to apply even if they do not fulfill every single point.

    Last but not least: Make sure to write the advertisement in a screen-reader-friendly way.

    3. also live diversity in the recruiting process

    Involve as many different employees from different departments as possible in your recruiting processes.
    Not only the HR team, but also specialist departments or future colleagues and superiors.
    On the one hand, you will notice more quickly who harmonizes well with the team and who is needed.
    On the other hand, different perspectives ensure less bias and more openness to diversity.

    Speaking of bias: offer recruiting staff regular recruiting and interview training.
    These training sessions should identify and reduce potential bias (which we all have!).

    Give all applicants a chance.
    And don’t necessarily base your selection on who is exactly the same as the rest.
    It’s much more exciting to see who would complement the team well. What skills, what personality, what character is still missing?

    4. create guidelines on diversity

    If you want to create more diversity in your company, you may have to adapt guidelines and processes.
    As just mentioned, this starts with the job advertisement, which should not exclude anyone and should appeal to everyone.
    Other options are

    • Allow religious holidays that are not prescribed by law
    • Offer childcare or establish partnerships with daycare centers
    • Offer more paid sick days than required by law

    5. offer flexible working time models

    Remote working, part-time models and generally flexible working hours enable employees with children, for example, to juggle everything.
    But employees with a different working rhythm also benefit from this.
    This is because they can adjust their working hours to when they are most productive – within the framework of legal regulations.

    A tip: Work with calendars and certain status options.
    Anyone who has a blocker in their calendar or is not available according to their status should not be contacted or assigned tasks.

    6. create a working environment in which everyone feels comfortable

    Design the workplace in such a way that everyone feels comfortable and can work well.
    This includes, for example

    • Barrier-free design of the workplace, but also of the toilets or kitchen and – sounds obvious, but is rarely considered – the entrance to the company!
    • Retreats or quiet zones for undisturbed work
    • Options for individual ergonomic workplace equipment, especially at the desk

    7. check the implementation of diversity and have an open ear

    Make sure that diversity in the company is not just on paper, but is actually practiced in everyday life.
    Make sure that all employees are aware of the guidelines and rights.
    Provide (anonymous) surveys and feedback opportunities.

    This means that anyone can submit suggestions for improvement, but also draw attention to discrimination and disadvantages.
    The Whistleblower Protection Act, for which companies must set up a whistleblower system anyway, is also essential for this.

    Always remember: your employees see problems and potential that you probably don’t know about because you are not specifically affected!

    Diversity in companies is a process – it pays to keep at it!

    Diversity cannot be implemented overnight and certainly not top-down.

    Take one step at a time.
    Follow best practices and examples from other companies, but be sure to adapt them to your company with the help of your employees.

    The first port of call is the Diversity Charter’s resources – e.g. its tips for diversity management in large companies, SMEs, the public sector and associations.
    Over time, you will create a company where everyone feels welcome.
    We wish you every success!

     

    * This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

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    15.05.2024

    Sanctions at a glance: The cost of mistakes in reporting and implementing sustainability

    A slap on the wrist and, if it becomes public, a brief outcry from the public: until a few years ago, companies didn’t have to worry too much if they put sustainability on the back burner or engaged in greenwashing. This is now a thing of the past. Read here about the consequences if the new requirements are not implemented correctly – and get tips on how to do it right!

    Some simply lack an overview of their own data.
    Others are overwhelmed by the numerous requirements of the new ESG regulations.
    Still others underestimate the effort involved and start far too late.
    And then, of course, there are companies that try to cover up their lack of commitment to sustainability with falsified information.
    The possible reasons for inadequate implementation of the new regulations in sustainability, climate and supply chain management are as varied as the people who implement them for their companies.
    Until a few years ago, there were hardly any consequences.
    There might have been a shitstorm and a few calls for a boycott, but over time – or a lot of PR work – these soon petered out.
    However, with the introduction of the new regulations and guidelines for sustainable business practices, which are being rolled out across Europe as part of the Green Deal, this is now a thing of the past.
    Errors and misrepresentations can be expensive.
    How expensive exactly?
    We have summarized this for you in this article – including recommended reading to help you get it right!

    This information is editorial content that should not be construed as legal advice. VERSO accepts no liability.

    Sanctions for EU taxonomy, CSRD and SFDR

    As far as uniform sanctions are concerned, the trio is unfortunately still rather incomplete.
    This is because the three directives have yet to be transposed into national law.
    Each EU member state must independently determine the extent to which it wishes to sanction errors in financial and non-financial reporting.
    In line with the CSR-RUG – the predecessor of the CSRD – errors in reporting in accordance with the CSRD, SFDR and EU taxonomy will presumably also be penalized in accordance with §331 and §334 HGB.
    In figures, this means

    • Prison sentences of up to 3 years
    • For members of authorized representative bodies or supervisory boards of a corporation: prison sentences of up to 3 years; companies face fines of up to 2 million euros or twice the economic benefit they have derived from the incorrect report – whichever is higher.
    • For capital market-oriented companies: Fines of up to 10 million euros, 5 percent of annual turnover or twice the economic benefit – the highest amount is also chosen here.

    On top of this – as the fermented icing on the cake, so to speak – there may also be legal action for breach of competition law, exclusion from public procurement procedures and “naming and shaming”, i.e. public disclosure including loss of reputation.
    loss of reputation.
    Important to know: Only intentional errors and errors due to gross negligence are punishable.
    Incidentally, the Auditors’ Association wants to relax the CSRD for auditors: With a cap on the amount of liability and limited liability for gross negligence.
    However, this demand has been heavily criticized – so there is still some way to go here.
    From 2025, the first court proceedings will show the exact direction of sanctions for breaches of the EU taxonomy, CSRD and SFDR. Read more:

    Practical guide to CSRD

    Our practical guide, including a checklist, will help you prepare for CSRD reporting.
    Find out what challenges there are and how you can overcome them.

    Sanctions for LkSG and CSDDD

    CSDDD

    After a long back and forth, an agreement was reached in March 2024 on the CSDDD; the European supply chain law.
    Here, too, there is still some time before it is transposed into national law.
    However, the liability and sanction framework in the event of a breach of the due diligence obligations for people and the environment enshrined in the CSDDD is already clear.
    Affected companies are liable for all damages that occur along the upstream supply chain due to inadequate or missing risk prevention or remedial measures – unless these are caused by a business partner.
    In other words:

    • If your company knows about irregularities and ignores them, supervisory authorities can impose fines of up to 5% of global turnover.
    • Civil liability will also be introduced.
      Those affected can therefore assert claims against your company with the help of NGOs or trade unions, for example.
    • There is also the threat of naming and shaming and exclusion from public procurement.

    LkSG

    In contrast to the CSDDD, there is no civil liability under the German Supply Chain Act.
    However, there are expensive fines if the legal obligations are not complied with.
    Under the LKSG, these include environmental and human rights due diligence obligations towards indirect suppliers and, if known, also towards direct suppliers.
    Under the LkSG, risks must also be identified, documented and then eliminated or at least minimized.
    Otherwise there is a risk of fines of up to 8 million euros.
    For companies with an annual turnover of more than 400 million euros, the fine increases to up to 2% of annual global turnover.
    And: companies can be excluded from public procurement. Read more:

    EU ETS and CBAM sanctions

    EU ETS

    With the EU Emissions Trading System (EU ETS), the EU aims to cap the emissions of the member states.
    Companies only have a certain amount of freedom to emit emissions – otherwise certificates must be purchased.
    Non-compliance could result in fines:

    • 100 euros per metric ton of CO2 equivalents emitted without a certificate

    In order to avoid certificate prices on the one hand and sanctions on the other, some companies relocated their production to non-EU countries (“carbon leakage”).
    The CBAM was therefore also introduced as part of the EU ETS reform.

    CBAM

    Since January 2024, the CBAM reporting obligation has applied to all companies that import certain emission-intensive goods from non-EU countries.
    The so-called “climate tariff” supplements the EU ETS – and entails a whole range of possible sanctions:

    • Transitional phase: If the CBAM report is incomplete, contains incorrect information or is not submitted at all, or is not corrected after being requested to do so, a penalty of 10 to 50 euros per ton of unreported emissions will be imposed.
    • Implementation phase: In accordance with the EU ETS, fines of EUR 100 per tonne of CO2 equivalent are imposed for missing certificates.
    • Anyone importing CBAM goods without the status of authorized user must expect even higher penalties.
    • In addition to the financial sanctions, it is also possible that the “Authorized Declarant” status will be withdrawn – the company concerned would then no longer be allowed to import CBAM goods from 2026.

    Good to know: As a CBAM applicant, you will have noticed that there was a delay in activating the registration options.
    As a result, the first CBAM reports could not be submitted on time.
    According to the Federal Environment Agency, however, this delay will not be penalized. Read more:

    Is your purchasing department ready for the ESG requirements?

    Companies are now affected by a large number of sustainability requirements – and purchasing is no exception.
    Use our checklist to find out whether your purchasing organization is optimally prepared for ESG requirements.

    Sanctions with the EUDR

    Supply chain officers and buyers must prepare for even more sanctions.
    At the end of 2024, the directive for deforestation-free supply chains – the EUDR – will come into force.
    If you place products on the EU internal market that have been produced without deforestation, you could face the following penalties under the directive:

    • Skimming off profits unlawfully made as a result of non-compliance with the EUDR
    • Fines in proportion to forest damage and value of goods, but at least 4 % of annual turnover
    • Seizure of goods or products
    • Temporary import bans
    • Exclusion from public funds and public tenders
    • Inclusion in a public list incl.
      Information on the violation

    Also important: If you do not have the relevant geo-information and proof of origin for your goods, you will no longer be allowed to import them into the EU once the EUDR comes into force.
    Keep this in mind now if you are ordering goods that you want to import into the EU internal market from 2025. Read more:

    Sanctions under the Green Claims Directive

    There is already a whole range of regulations on environmental claims and environmental labeling systems on the market.
    The Green Claims Directive will be added shortly.
    It is specifically aimed at advertising claims that make a product or company appear more sustainable than it actually is.
    False green claims are punished as follows:

    • Fines of at least 4% of the annual turnover
    • Exclusion from public procurement
    • Recovery of the revenue that your company has generated through the false statements.

    Read more:

    Save money and nerves with VERSO

    To ensure that companies do not approach the sustainable transformation too carelessly, the EU provides for “effective, proportionate and dissuasive” measures in any case.
    In view of the possible sanctions, we are happy to believe this – and help you to correctly implement the guidelines and regulations that apply to you.
    Not only our top software, but also our experienced consultants and our specialized partners are at your side.
    Feel free to get in touch with us!

    Subscribe to our newsletter!

    Sign up and receive regular news about:

    • Pragmatic all-in-one solution for ESG reporting, climate and supply chain management
    • Individual advice from the VERSO experts
    • Developed with expertise from 12+ years of sustainability management
    • Trusted by 250+ customers

    Get to know the software!

    ESG-Ziele müssen auch von Führungs- und Kontrollorganen (Unernehmensführung, Vorstand, Aufsichtsrat) mitgetragen und erfüllt werden. Sonst drohen durch CSRD, LkSG, CSDDD und Co. empfindliche Strafen.
    08.05.2024

    ESG regulations oblige executives: What management boards, supervisory boards and management should do now

    If companies want or need to tackle the issue of sustainability and ESG, it only makes sense to do so holistically. Holistic in the sense that the entire company must be behind it. First and foremost the managers and supervisory bodies. We explain the to-dos for the top management level.

    Why is it important for managers to take an in-depth look at ESG and sustainability?
    Firstly, so that the sustainability team has the backing and resources to implement effective measures.
    But ESG regulation also demands decisions and transparency on sustainability issues from management boards, supervisory boards and management.
    We will now delve deeper into the requirements that ESG regulation places on managers. Click here for 5 specific tips for compliance.

    This information is editorial content that should not be construed as legal advice. VERSO accepts no liability.

    Requirements, obligations and effects of ESG laws

    Several ESG laws and guidelines impose obligations on management boards when it comes to sustainability.
    The demands on the board level are similar in all cases.
    In short, this means that regardless of whether or when your company is affected by which ESG law, company management must now address ESG objectives.
    Here you will find an overview of the individual requirements that are relevant for management boards, supervisory boards and management in the currently applicable ESG laws.  

    The Corporate Sustainability Reporting Directive (CSRD) with the ESRS

    Firstly, the
    CSRD, with its European Sustainability Reporting Standards (ESRS), already places clear obligations on the board level with regard to the review of the
    sustainability report:

    • Monitoring the reporting process
    • Ensuring the independence of the auditors
    • Forwarding of the audit result for the report to the Supervisory Board
    • Creation of capacity for new positions in the ESG team and the development of risk management
    • Enabling transparent data collection
    • Release of reports for handover to auditors

    So much for the review of the report at the end.
    But even during the reporting process, the Management Board is called upon to act – particularly in the ESRS 2 standard, which is mandatory for all companies and to which all strategic aspects of the topic standards are linked.
    The governance section of this standard is explicitly aimed at the management board and company management.
    The following are the To Dos that can be derived from this for the management level: Building ESG expertise: it is not just the ESG team that needs to be familiar with sustainability issues: The CSRD stipulates (ESRS GOV-1) that you must explain who among the executives and controlling bodies is responsible for ESG issues and oversight of the reporting process.
    The status of the expertise of these persons with regard to sustainability aspects is also queried. Integration of sustainability into the remuneration model: In ESRS GOV-3, the company management must disclose whether there are incentive systems for remuneration in the company, how these are structured and whether sustainability performance is integrated into them.
    So consider how you can adapt your remuneration policy to incentivize the long-term thinking and management of your colleagues. Integrate ESG into due diligence and risk management processes: Include ESG in all due diligence, corporate decision-making and risk management processes: This is because the CSRD requires boards to set out how they inform themselves on ESG issues (including a list of risks, impacts and opportunities that senior management have addressed).
    They must also consider how they take these sustainability aspects into account in strategic decisions and due diligence and risk management processes.
    If managers and supervisory bodies fail to meet their obligations, the consequences are not just reputational damage or subsequent filings: the CSRD can also result in fines.

    The ESRS standards at a glance

    With the CSRD, the EU is also introducing uniform European standards.
    The European Sustainability Reporting Standards (ESRS) are intended to make sustainability reports more meaningful and comparable.
    All information can be found in the whitepaper.

    The Supply Chain Due Diligence Act (LkSG)

    The German Supply Chain Act currently affects companies with 1,000 or more employees.
    Companies must prove that due diligence obligations are being complied with in their supply chain.
    For this purpose, a comprehensive report must be submitted to the Federal Office of Economics and Export Control (BAFA).
    The LkSG has a direct impact on the highest company levels.
    This is because it concerns risk assessment and risk minimization in a company’s supply chain.
    Decisions for or against business partners, suppliers, expansions into other countries – these are important strategic decisions that go beyond the remit of purchasing.
    They may not require the involvement of the board level at the beginning of the process – e.g. during risk analysis.
    However, later on – e.g. when it comes to risk minimization measures – the management, Executive Board and Supervisory Board are always required.
    After all, risk minimization also affects the company as a whole and ensures its future viability.
    Violations of the LkSG are punished as administrative offenses.
    This means that sanctions can be imposed not only on companies, but also on the individuals involved.
    The acting persons in the company are the management – they can therefore be held responsible.
    In addition, the supervisory board must also monitor LkSG compliance in its control and advisory function.
    If it fails to do so adequately, the supervisory board is also liable.
    The consequences are fines (depending on the violation and severity) of up to EUR 100,000, up to EUR 500,000 or up to EUR 800,000 per violation.
    In special cases, a stricter regulation, the turnover-based penalty, may also apply.

    Practical guide LkSG Compliance

    Everything you need to know about implementing the German Supply Chain Act: This practical guide covers all the recurring requirements of the LkSG, a large part of which is risk analysis.

    The European Supply Chain Directive (CSDDD)

    The Corporate Sustainability Due Diligence Directive (CSDDD) is the European equivalent of the German Supply Chain Act.
    It is currently envisaged that it will not have a greater impact on German companies than the German LkSG already does.
    Nevertheless, there are also requirements here that impose ESG obligations on the management board level: Accordingly, companies must disclose a strategy that is compatible with the 1.5°C target of the Paris Agreement.
    This ESG strategy should not only contribute to the climate targets on paper.
    It must be demonstrated that the variable remuneration of the Management Board is partly dependent on the efforts to implement a climate plan.
    The regulation explicitly obliges management to act not only in the interests of the company, but also to take sustainability aspects into account.
    In addition, the CSDDD obliges the management to establish and monitor measures for the fulfillment of due diligence obligations.
    The management must then also report on this to the Executive Board.

    Factsheet on the European Supply Chain Act

    The EU Supply Chain Act (Corporate Sustainability Due Diligence Directive – CSDDD) is to become the European framework for the German Supply Chain Act (LkSG).
    In this factsheet, you will find out which companies are affected, what you can expect and what differences there are to the German Supply Chain Act (LkSG).

    Other ESG obligations

    Although the EU has recently passed some laws specifically in the area of sustainability, there are also other laws and voluntary commitments that require ESG commitment from board members and executives.
    Below you will find two specific examples:

    • Shareholder Rights Directive: According to the directive, the remuneration structure of the Management Board of listed companies must be geared towards the sustainable and long-term development of the company.
      The aim is for the Supervisory Board to also take social and ecological aspects into account when setting salaries.
    • German Corporate Governance Code: The GCGC is a voluntary commitment by the business community and provides listed companies with standards for good and responsible corporate governance.
      Here, too, the remuneration structures for Management Board members must be aligned with ESG aspects.

    5 Measures for management boards to prepare for ESG obligations

    You now know that the management board, supervisory board and managing directors must all take responsibility for sustainability in companies.
    There is a lot to do – to get you from reading to doing, here is a list of measures and topics that the management level should implement – regardless of which law the company is or will be affected by and when. 1. get yourself (and your team) ready to go

    • Determine who on the Management Board is responsible for sustainability and set up internal committees to take sustainability aspects and requirements into account in your strategies.
    • Define the responsibilities for implementing the ESG strategy and ESG objectives.
      Form an ESG team.
      Equip it with the necessary knowledge for implementing the sustainability strategy and for reporting.

    2. carry out an ESG update of your corporate strategy

    • Integrate short and long-term ESG goals into the corporate strategy.
      This will prevent conflicts of interest and give the topic the importance it deserves.
      Ensure that sustainability is a fixed and central component of your corporate strategy.
      You will benefit from long-term business success.
    • Evaluate whether the company’s purpose, vision and values are in line with your sustainability strategy.
    • Discuss in the team whether the remuneration structures (especially for managers and supervisory bodies) should be aligned with sustainability aspects.
      On the one hand, this is required by all ESG regulations; at the same time, studies (Via Tomorrow) show that these practices are already widespread and highly effective.

    3. keep an eye on your ESG risks

    • Take a look around you: How are other companies or stakeholders dealing with ESG risks?
      What sustainability measures are they implementing?
      How does your company compare?
    • Carry out a materiality analysis with your ESG team.
      This will allow you to identify the opportunities, impact and risks of your company in terms of sustainability.
      Take the first countermeasures for the most urgent risks.
    • Identify your opportunities and position yourself for the future.
      Update your ESG risk and opportunity assessments regularly, just like other topics.
      Include sustainability aspects in your regular risk management.

    4. support your ESG team

    • Empower the team to set up the processes for reporting and control mechanisms.
    • Gain a rough overview of the frameworks, methods and EU regulations.
      This will enable you to make well-founded decisions for the implementation of the sustainability strategy.

    5. stay on the ball

    • Establish a process within top management to regularly reassess ESG issues and improve your strategy.
      Regularly coordinate ESG and sustainability issues within the board and management: ESG issues are related to financials.
      Establish a regular exchange between the operational ESG team and the management level.
    • Good sustainability management requires a lot of knowledge.
      Not only in the ESG team.
      As mentioned at the beginning, sustainability is an issue for the entire company.
      Therefore, make sure that all employees receive regular training on the ESG topics relevant to them and are integrated into the ESG processes and measures.
      After all, you can only make a difference if everyone is on board.
      And don’t forget the top level: management, the Executive Board and the Supervisory Board also need up-to-date sustainability knowledge – to comply with the law, but also to be able to make good corporate decisions.

    Meet your ESG obligations with VERSO

    Especially in the initial phase, it is not easy to get into action – too many unanswered questions, little efficiency in the processes, hardly any experience with sustainability in the team.
    What are sensible measures?
    What exactly should a sustainability strategy look like?
    How do we approach the materiality analysis efficiently?
    Trust us, we have been doing this for a long time – for more than 10 years to be precise.

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