In addition to the legal framework, the applicable reporting standards (European Sustainability Reporting Standards, ESRS) are also being simplified: fewer data points and a methodologically simpler two-step materiality analysis are emerging as the most significant changes. What has not changed, however, is:
- Sustainability information continues to form part of the management report.
- The analysis of impacts, risks and opportunities (IROs) remains the cornerstone of the content.
- Data must be complete, traceable and audit-proof (even though the level of audit scrutiny will remain limited).
The number of companies required to report has decreased. However, the requirements for those that do have to report remain demanding and call for a well-thought-out approach, clear priorities and robust processes.
For large medium-sized and family-run businesses in particular, efficient processes and a sense of proportion are essential to ensure that ESG reporting does not remain an end in itself, but becomes a solid foundation for resilience, efficiency and value creation. Successful companies rely on:
- A focus on what matters most rather than data collection at any cost,
- integrated ESG data management that links reporting, bank and counterparty ratings, and other regulatory requirements,
- standardised, repeatable processes that are also audit-proof, and
- technology- and AI-driven solutions to reduce effort and improve quality.
