Dear Entrepreneur,

the ESG reporting requirement is here! The Corporate Sustainability Reporting Directive (CSRD) aims to significantly improve the quality of environmental-social reporting and thus raise it to the level of financial reporting. At the same time, more private and municipal companies will be included in the reporting requirements in the coming years, which will pose enormous challenges for medium-sized companies in particular.

If you are currently insufficiently engaged with the topic of sustainability, you run the risk of being overwhelmed by future sustainability reporting obligations. Non-compliance or poor performance may result in sanctions and even loss of business. To avoid such a situation, you should build competencies now and keep a close eye on the coming regulatory environment.

Questions and answers


1This topic is so big - I don't even know where to start!

The NFRD established important principles for the annual NacUnloved or potentially challenging tasks to put off is a normal occurrence at first. The brain is frugal: before it gets into anything complex, it steers us toward more tangible activities first. People kill time and then they wonder where it went. "Postponing" is not a solution, however. Perhaps in our common conversation we will find one or the other starting point to get into this admittedly complex topic!

2Expectations are too high - we can't even do that!

No one has to be perfect right away - the whole thing is a journey. Sustainability is not implemented in companies from one day to the next; rather, it is something that can be developed further and, as a result, the responsibilities and the people who take care of this issue naturally evolve as well.

3It's a bureaucratic monster - and nobody cares about the results anyway!

Sustainability isn't about documenting and filing numbers; in the long run, it will fundamentally transform your business, perhaps even reinvent it. This scope must be clear to you. Your bank and insurance company already know this and will reevaluate your business accordingly.

4There is still time for me - we have other, bigger problems right now!
For most companies, the reporting requirements will apply from 2026 (for the reporting year 2025). That sounds like a lot of time, but it quickly shrinks when you consider the organizational effort and to-dos involved. Our advice: Better to start early and also do a test run than to be a driven later.
5I know my company - the risks are manageable!

Your corporate responsibility does not end at the factory gate. The legal situation is simple: in the coming years, you are obliged to provide transparency on the entire value creation. If you do not perform sufficient due diligence, you are responsible for errors in the supply chain. You already know this from quality management.

6We lack the specialists for this - what should I do?
The CSRD would be on the other EU initiatives for sustainable finance Look for the talent not only in the labor market, but in your workforce! There are enough who are passionate about the subject and the necessary knowledge can be learned. Keyword training. First of all, it is important to appoint a responsible person. This person doesn't even have to be assigned to it full time. In the long run, this is certainly not possible on the side, but at first he or she can coordinate the project and for the rest, get help from outside, especially in the beginning when it comes to setting the course.
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