Future-Proof Your Business with ESG Reporting: Preparing for ESRS

While some are prepared, many risk falling behind, but those who act swiftly can gain a competitive edge.

ESG Reporting: Turning Compliance into Clarity

Although many businesses are already sharing ESG data, its actual value is often unclear. Only 7% of Scandinavian firms and 32% of Europe’s largest companies report the capital allocated to meet net-zero goals. Even more alarming is that only 5% of European revenue is classified as “green” despite widespread commitments to the Paris Agreement. For companies serious about sustainability, bridging the gap between promises and actual financial investment is critical.

Linking Executive Pay to ESG Performance

While aligning executive compensation with ESG goals is on the rise, many markets lag behind. For example, 84% of European companies link executive pay to greenhouse gas (GHG) reductions, but only 24% do so in Scandinavia. By connecting executive performance with sustainability metrics, companies create accountability and encourage real progress. Moving fast in this area can attract investor interest and provide a clear advantage in today’s market.

Navigating the Complexity of ESG Data

The European Sustainability Reporting Standards (ESRS) presents new challenges in compliance. Compliant reports often stretch over 100 pages, packed with complex data that can overwhelm stakeholders. Companies need to shift from producing exhaustive reports to delivering actionable ESG insights that are both easy to understand and aligned with compliance requirements. Simplifying this data makes it more useful to decision-makers while still adhering to the regulatory framework.

Moving From ESG Commitments to Action

Many companies declare net-zero targets, yet few have the detailed capital plans required to achieve them. The 2024 ESG100 review reveals that while companies publicly commit to sustainable practices, implementing these goals is still lacking. Executives need to focus on transforming high-level commitments into strategic, actionable roadmaps. Investing in sustainability now will determine success in the years to come.

How Position Green can help

The 2024 ESG100 review highlights both progress and challenges as companies adapt to CSRD regulations. While some businesses have made significant strides, others face hurdles in improving transparency, accountability, and integrating sustainability into their core strategies. Taking action today can safeguard your company’s future and secure a place as an industry leader in sustainability reporting.

And Position Green is here to help. If you’re seeking better preparedness for your first ESRS reporting round or simply wish to get ahead of the curve of compliance, click below to connect with us today.