The philosophy of sustainable development has become more than a general assumption for European Union countries. Environmental issues, as well as social and managerial aspects of business, set the direction of development of modern, rapidly growing companies. Reo.pl is a responsible partner, supporting the activities of companies for sustainable development. If you are planning to take actions in the area of ESG, we can help you!
What is ESG and who does it apply to?
ESG stands for Environmental, Social and Corporate Governance, which together make up sustainability. Taking care of business strategy is not just about maximizing revenue. Sustainability is made up of a complex legal ecosystem:
- European Union Taxonomy
- CSRD Directive
- CS3D Directive
The ESG regulatory framework affects many areas of businesses. Sustainability activities not only allow compliance to be realized, but build the image of the company as a conscious market participant that cares about the world around it and develops in a stable way, not driven solely by the desire for profit.
Remember, by taking action on sustainability, you gain doubly!
Corporate sustainability reporting does not only apply to the largest corporations. The EU legislature is gradually imposing reporting obligations on more businesses.
- Beginning in 2025, NFRD reporting entities (public interest entities) will be required to report ESG for 2024;
- From 2026, large companies meeting at least 2 of the 3 criteria (employment volume of more than 250 employees, total assets of more than €25 million, net revenues of more than €50 million) will file their first reports for 2025;
- From 2027, small and medium-sized listed companies will be subject to non-financial reporting obligations;
Have you started using the new reporting yet?
Our specialists can help you with this. We support the implementation of “green assumptions” by offering 100% green energy for your business.
EU taxonomy principles
One of the elements of ESG is the so-called taxonomy. This is the European Commission's way of precisely defining the criteria that a company must meet in order for its operations to be considered environmentally sustainable. The company:
- must make a significant contribution to at least one of the six environmental goals;
- must not cause harm to any of the environmental goals;
- has operations that comply with minimum guarantees;
- meets technical qualification criteria.
Corporate Sustainability Reporting Directive
When undertaking ESG activities, a business should take care of the environment and society as well as internal corporate governance in its operations. These three pillars are the foundations of the philosophy of Corporate Social Responsibility (CSRD). Its general framework is indicated in the CSRD (Corporate Sustainability Reporting Directive).
The process of implementing an ESG strategy, which is a successor to CSR, so to speak, should take into account a whole range of criteria that your company should apply. Pay attention to the following areas:
Environment
among others, management of natural resources, use of water resources, energy efficiency, greenhouse gas emissions, negative environmental impact of economic activities;
Social
among others, decent working conditions, equal treatment, respect for human and labor rights, supply chains;
Corporate Governance
among others, governance and financing structure, risk management, relationship with shareholders, accounting standards, independence of bodies within the company, succession.
What is the purpose of ESG?
ESG allows the creation of mechanisms to measure the various elements that make up the social responsibility of an enterprise. It can be compared to a company's development philosophy. By creating an ESG framework, the aim is to reduce the negative impact of companies in the European Union on the environment. This creates healthy conditions in which business can prosper without limiting these opportunities for future generations.
What does an ESG strategy include?
A company's development strategy based on the three pillars mentioned above is a customized selection of actions aimed at reducing business risks, but in very broad terms:
Environmental
Social
Management-related
The introduction of environmental compliance helps reduce unforeseen events that can affect the areas indicated above. At Reo.co.uk, we are dedicated to building an environmental pillar. With our green energy offerings, we will help you meet the ESG requirements for the environmental aspect, which, in a business context, enhances your company's financial capabilities.
Corporate sustainability efforts
Effective ESG implementation in companies
Many companies may face difficulties in implementing ESG. Where to start? How much do the various investments cost and will they pay off in the foreseeable future? Building social responsibility is a long-term process that should be implemented in small steps. The organization's ESG changes should involve management, employees as well as the electricity used in the company.
First steps in ESG/CSR
Start by conducting an ESG/CSR audit of your company. This will help you determine a course of action for the future. Set measurable goals to track your progress and keep stakeholders informed of the changes you are making. Remember to change your organizational culture and align your processes related to production and sales of products and services with the new standards.
Flexibility as a key to success
Remember that operations in the areas of sustainability require a great deal of flexibility as you, your contractors, your business environment and the environment in which we all exist evolve.
Comprehensive support
Using Reo.pl's services, you will receive comprehensive support at every stage of your green energy purchase. We will help you reduce the negative impact your business has on the environment and make it easier to demonstrate compliance with formal requirements.
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