Sustainability Reporting

On the road to the first climate-neutral continent: the European Green Deal

The European Green Deal aims at making Europe the first climate-neutral continent by 2050. To achieve this goal, net greenhouse gas emissions are to be reduced by at least 55% by 2030 (compared to 1990). As an additional interim target, the EU Commission proposes a 90% reduction in greenhouse gases by 2040 (compared to 1990). The European Green Deal includes a range of specific measures for various economic sectors. Among these is the Corporate Sustainability Reporting Directive (CSRD), which replaces the previously applicable Non-financial Reporting Directive (NFRD).

The CSRD comes with broader regulatory requirements

The CSR Directive makes sustainability reporting more significant for companies in several respects. Whereas around 12,000 entities across the EU were previously obliged to provide non-financial reporting, the CSRD directly affects an estimated 49,000 companies. Approximately 15,000 of these companies are based in Germany and around 2,000 in Austria. Even more companies will be indirectly affected by the new regulations, as the upstream and downstream value chain must also be taken into account as part of CSRD-compliant reporting.

The chart describes which region is affected by ESG reporting and when. Included are Europe, Austria and Germany and when which obligations come into force for companies.

The reporting requirements are intended to create comparability and transparency regarding various environmental and social impacts. This includes both significant current impacts, opportunities and risks in the context of climate neutrality, social and governance as well as potential impacts, opportunities and risks in different time horizons. Sustainability objectives also fall within the scope of reporting.

One directive rarely comes alone

In the context of sustainability and reporting, companies are not only confronted with the CSRD Directive. Numerous other regulations at national, European as well as international level may become relevant, such as the EU Taxonomy Regulation, which has been in force since 2022, the Corporate Sustainability Due Diligence Directive (CSDDD) adopted in 2024 and the Sustainable Finance Disclosure Regulation (SFDR), which came into force in 2021.

The numerous regulatory requirements and reporting obligations are not only relevant from a legal perspective, but also sharpen the sustainability awareness and expectations of various stakeholder groups, whose interests must be considered when it comes to reporting.

Recognising and exploiting opportunities: Climate neutrality and social justice as drivers of sustainable corporate success

The new regulations mean that addressing the environmental and social impact of one’s own business activities is no longer merely an option for more and more companies but is becoming mandatory.

Yet what companies can certainly influence is:

How efficiently they prepare a sustainability statement that complies with the relevant (voluntary and/or mandatory) regulations
The extent to which they organise their sustainability strategy and its implementation in such a way that it strengthens their economic basis in the long term

An ambitious and holistic sustainability strategy and its successful implementation can give companies significant competitive advantages through

Robustness of the business model
Fundraising advantages
Greater attractiveness as an employer
Better evaluation as a supplier
Proactive sustainability opportunity and risk management along the entire value chain
Targeted sustainable product

The EFS Sustainability Reporting portfolio of services

EFS Consulting supports and designs sustainability projects holistically – from the first orientation steps to the implementation of the organisation-specific sustainability strategy.

This chart describes the EFS Sustainability Reporting service portfolio, from the first steps of orientation to the implementation of a company-specific sustainability strategy.

Orientation – What needs to be done?

Value chain and stakeholder engagement: Involving and considering key stakeholders along the value chain
Project plan 1 CSRD reporting: Creating a roadmap in preparation for the implementation of the CSRD
EU taxonomy mapping: Identifying taxonomy-eligible and taxonomy-compliant activities including turnover, CapEx and OpEx
Conformity check of the sustainability declaration: Conducting a conformity check of the sustainability declaration in accordance with ESRS specifications

Conceptualisation – Which kind of data is required and how can this data be recorded?

Double materiality analysis: Identifying material IROs from an inside-out and outside-in perspective
Carbon footprint calculation: Creating a GHG protocol-compliant calculation of GHG emissions according to Scope 1, 2 and 3
CSRD data management: Collecting and structuring CSRD disclosure information including setting premises
CSRD objectives and measures concept: Establishing OKRs (Objectives and Key Results) for all key IROs

Communication – What does the internal and external communication strategy look like regarding sustainability?

CSRD sustainability declaration: Compiling a CSRD and EU-TAX-compliant sustainability declaration
Sustainability communication concept: Setting up internal and external communication measures
Raising awareness of sustainability: Promoting training and employee exchanges to support sustainable transformation

Transformation – What does it take to achieve sustainability goals holistically and effectively?

Sustainability/decarbonization strategy: Developing an integrated strategy including a transformation roadmap
Sustainability organization: Implementing a reporting process and sustainability management in the organization
Rollout sustainability management: Supporting the practical implementation of measures in accordance with the sustainable transformation roadmap