ESG Solutions
Big Picture
ESG Solutions
In a world where climate change and resource scarcity are increasingly influencing the economic and social environment, sustainability is no longer just an option, but a necessity for long-term business success. Companies are faced with the task of designing their operating models in such a way that they take equal account of ecological, social and economic criteria.
Concrete examples of sustainability transformation include the reduction of emissions, the use of renewable energy sources, the implementation of circular economy models and the promotion of sustainable development.
circular economy models and the promotion of social justice within supply chains. These transformations are often associated with high investments and far-reaching changes in corporate culture. In addition, the fast pace of technological innovation and regulatory requirements makes it difficult to plan and implement sustainable strategies. Clear guidelines and management commitment are therefore required to successfully implement the transformation towards sustainable business practices.
Challenges
A survey of global C-level executives revealed:
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61% said that climate change will have a high to very high impact on their organization's strategy and operations over the next three years.
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Around 75% said their organization had increased their sustainability investments in the past year (20% significantly)
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62% said that they are concerned about climate change most or all of the time.
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65% said that changing regulation has led their organization to increase climate-related engagement in the past year.
Key challenges
Sustainable Business Transformation
INTEGRATING SUSTAINABILITY INTO THE COMPANY STRATEGY
The integration of sustainability into the corporate strategy is profound and requires a clear definition of environmental goals, their measurability and the broad involvement of all business areas.
CULTURAL CHANGE AND EMPLOYEE ENGAGEMENT
The basis for this is transparent communication, the promotion of sustainable behavior and a deep understanding of change management, which can be particularly challenging in established companies.
DIGITIZATION AND IT TRANSFORMATION
The use and integration of digital technologies to optimize processes and reduce resource consumption is a critical aspect of sustainable transformations.
INTEGRATING SUSTAINABILITY INTO COMPLEX VALUE CHAINS
Anchoring sustainability in complex, often globally distributed value chains requires the elaborate implementation of ecological standards and close cooperation with all suppliers.
COMPLIANCE WITH REGULATORY REQUIREMENTS AND STANDARDS
Compliance with regulatory requirements and environmental standards requires constant monitoring of the legal situation, training for employees and adjustments to operating processes.
Impact of the CSRD
Area: Sustainability reporting
In the course of future-oriented corporate development, there is no getting around the EU regulations on sustainability. Back in 2019, the European Commission announced the European Green Deal, the European Union’s new growth strategy. The major goals: decoupling growth from resource use and achieving climate neutrality in the EU by 2050. As part of this, the Corporate Sustainability Reporting Directive (CSRD) was adopted in December 2022, which will require around 50,000 companies in the EU (including around 15,000 in Germany) to disclose their sustainability practices in an extended and transparent manner in accordance with the uniform standard of the European Sustainability Reporting Standards (ESRS) from 2024.
This initiative greatly expands the group of companies subject to reporting requirements and is aimed at increasing the transparency and comparability of sustainability reports as well as strengthening credibility and trust in corporate reporting. However, this obligation should not just be seen as a requirement to be fulfilled, as a good sustainability report is an important tool for both efficient sustainability management and a sustainable alignment of corporate strategy.
Who is required to report?
from 2024
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500 employees or more
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Turnover of € 50 million or more
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a balance sheet total of € 25 million or more
from 2025
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250 employees or more
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Turnover of € 50 million or more
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a balance sheet total of € 25 million or more
from 2026
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50 employees or more
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Turnover of € 900 thousand or more
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a balance sheet total of € 450 thousand or more
Key challenges
CSRD
ADAPTATION TO THE NEW STANDARD
IDENTIFICATION OF KEY ISSUES
STAKEHOLDER COMMUNICATION
To determine the material sustainability issues, companies must enter into dialog with their external stakeholders in order to understand their expectations and requirements for the final sustainability report.
DATA COLLECTION AND CONSOLIDATION
Our solutions
ESG solutions offer companies the opportunity to achieve their sustainability goals, comply with regulatory requirements, and strengthen stakeholder trust. By implementing ESG management systems, companies can measure, monitor, and improve their performance in the areas of environment, social, and governance. Modern technologies such as data analytics and AI can be used to efficiently capture ESG data and turn it into valuable insights. A transparent and proactive approach to ESG reporting can also enhance the company’s reputation and create competitive advantages.
WARGITSCH Transformation Engineers aim to use the available resources as intelligently and effectively as possible in order to successfully shape change plans and projects in companies, while at the same time aiming for the greatest possible stability for the new organizational state. With a comprehensive, sustainable and systematic way of thinking and working, WARGITSCH follows the three-step approach of (1) sustainability strategy (2) sustainability management (3) sustainability reporting.
On the one hand, the WARGITSCH Transformation Engineering Framework is used, which provides a holistic overview of the entire transformation design and how the restructuring of the organizational model, including process optimization, can look. On the other hand, the partnership with Cubemos, which has an all-in-one software solution of the same name in the area of sustainability reporting, comes into play. WARGITSCH thus provides companies with both strategic and technological support for their sustainability transformation.
TRANSFORMATION DESIGN:
A holistic view of human, organization and technology greatly improves the chances of successful, future-proof organizational development. WARGITSCH has its own framework for designing a holistic transformation project.
GOVERNANCE & COMPLIANCE:
Sustainable corporate governance and strong compliance ensure that companies fulfill their environmental and social responsibilities. This strengthens the trust of stakeholders and a long-term responsible corporate orientation.
REORGANIZATION & CULTURAL CHANGE:
Taking into account the current organizational model, the aim is to redefine roles, functions, structures, processes, frameworks and conditions in order to achieve the desired sustainable transformation.
SUSTAINABILITY STRATEGY:
SUSTAINABILITY MANAGEMENT:
The integration of sustainability management into corporate processes is facilitated by digital technologies. Automated processes and synchronized decisions maximize resource efficiency and environmental compatibility.
Our service portfolio
| Format | Awareness workshop on the topic of sustainability |
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| Scope | 1 Day |
| Contents |
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Imparting basic knowledge on the topic of sustainability
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Creating a common understanding of sustainability
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Introduction to EU regulation incl. CSRD and EU taxonomy
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Identifying the scope for the company
| Format | WORKSHOP ON MATERIALITY ANALYSIS (CSRD) |
|---|---|
| Scope | 2 Days |
| Contents |
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Creating the basis for sustainability reporting
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Determining and evaluating the relevant sustainability aspects according to the principle of double materiality
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Presentation of Cubemos as a software solution for reporting
| Format | CONSULTING SUSTAINABILITY STRATEGY / REPORT |
|---|---|
| Scope | from 3-6 MONTHS |
| Contents |
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Strategy development through practice-oriented workshops and remote support
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Analysis of corporate vision, positioning, business model, value chains, product development, environment, stakeholders
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Analysis of corporate vision, positioning, business model, value chains, product development, environment, stakeholders
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Preparation of a sustainability report in accordance with CSRD