The impact of an organisation on the environment:
The impact of the organisation on employees and the environment:
The way the organisation operates and is managed:
ESG is increasingly important to an organisation's clients, investors and employees. It affects both the value and competitiveness of a company and its image.
ESG is intended to help companies define and build strategies in such a way that, among other things, they minimise their negative impact on the natural environment and thus strive for sustainable development, respecting the interests of society and local communities as well as their own employees.
ESG reporting, i.e. non-financial reporting on corporate sustainability, is a new obligation under the provisions of the EU CSRD (Corporate Sustainability Reporting Directive).
ESG reports for 2024 will first be prepared in 2025 by large entities or large consolidating entities of a large group that is a public interest entity if it exceeds the criterion at the balance sheet date:
Then, in the following years, the new obligation is to gradually cover smaller and smaller companies. Reports for 2025 in 2026 will be prepared by the remaining large entities that exceed two of the three criteria at the balance sheet date:
In 2027, non-financial reporting for 2026 will include, among others, Quoted small and medium-sized enterprises, small and not very complex credit institutions and captive insurance and reinsurance companies (For accounting periods beginning before 1 January 2028, these undertakings may choose not to include a sustainability report in their management report. However, in that case, the enterprise shall briefly state in its management report the reason why a sustainability report has not been prepared.).
The main objective of ESG reporting is to identify all non-financial risks and opportunities integral to a company's day-to-day operations.
However, ESG is not only about mandatory non-financial reporting, but also about strategic change. Implementing voluntarily an ESG strategy in an organisation as an integral part of the overall business strategy is important. This action can significantly improve a company's relationship with external partners, banks (especially with regard to obtaining financing or obtaining financing on preferential terms), attract talent, reduce risks, increase competitive advantage both domestically and internationally. Non-mandatory reporting may also be required by parent companies from groups of companies for mandatory reports produced by parent companies or groups of companies in general.
We are part of the international Crowe network, one of the largest accounting and consulting networks in the world. We provide clients with professional audit, tax, advisory and consulting services. We have now added ESG consulting to our portfolio of services.
As part of our ESG advisory service, we will help your organisation with the following areas: