ESG and Sustainability –
ready, set, get moving!
ESG (Environmental, Social, and Governance) is high on the agenda for many companies, and understandably so. By 2024, 50,000 Danish companies will be subject to sustainability reporting, and many more companies must soon follow suit.
There is a significant interest in ESG, as evidenced by our annual meeting with our global network, Senior Management Worldwide (SMW). Everything we experience in Denmark regarding CO2 emissions, sustainability, and ESG is a 1-to-1 reflection of what is happening in most other countries.
All partners in our global interim management network face huge demands from their clients for increased transparency, ESG compliance, and ESG reporting. As a board member of SMW, we have a special focus on this area to prepare for new regulation and demonstrate our performance on various ESG parameters.
Regarding ESG and the entire sustainability issue, we encounter two types of demands:
- Regulatory requirements are governed by authorities and the EU, as formulated in the EU’s Corporate Sustainability Reporting Directive (CSRD). This directive is transforming ESG reporting and requires companies to provide accurate information from various parts of the organization. For example, how you handle climate change, gender equality or your transition to a low-carbon economy.
- Consumer demands are rapidly intensifying and arise from consumers’ increased awareness of ethical and environmentally friendly behavior. Consumers want to know how businesses address climate change, promote circular economy practices, reduce resource and water consumption, and ensure fair treatment of workers throughout the value chain.
ESG Reporting on the Rise
There is no doubt that ESG reporting is evolving rapidly. A KPMG 2022 Global CEO Outlook revealed that 69% of CEOs see a significant demand among stakeholders for increased transparency and ESG reporting (compared to 58% in 2021).
ESG and sustainability also play a crucial role in attracting investors and ensuring corporate success. Investors tend to favour companies with strong ESG credentials. Nearly 75% of the CEOs in the same KPMG study agree that ESG progress improves corporate financial performance (up 38% from 2021). Transparent reporting allows investors and stakeholders to make informed decisions about a company’s true level of sustainability.
Our recommendation is to take immediate action and initiate your ESG process. If you do not have the internal resources to handle the process, an interim manager with a proven sustainability track record can initiate the project and help you toward the finishing line. Perhaps even stay on – if you find this a viable, long-term solution.
Want to know more?
Nextt Management are experts in Interim Management and have operated in the industry since 2003. Our philosophy is to provide top quality managerial solutions that your business achieve your desired results.
Contact us today if you found this blog post relevant or if it sparked your interest. We are happy to have an informal talk with you on how an interim manager can create positive results to your business.