The European union is nowadays strongly pushing towards more sustainable, more energy efficient and healthier environment for EU citizens. This is reflected in the EU Green Deal and many other environmental directives. In addition, sustainability is also driving other types of EU legislation dealing with reporting such as the Sustainable Finance Disclosure Regulation (SFRD) and the Corporate Sustainability Reporting Directive (CSRD). The main aim is to identify sustainability-related risks to potential investments.
Requirements set by above mentioned CSRD are in detail embedded in European Sustainability Reporting Standards (ESRS) and they provide sustainability reporting requirements based on specific datapoints to ensure comparability.
For the purposes of sustainability assessment of small and medium sized enterprises / start-ups, where compulsory reporting is not yet obliged, we will use concept of ESG assessment, where three main areas are covered with a specific set of questions.
Environmental factors consider a company's impact on the environment, including its carbon footprint, water usage, waste management, and pollution.
Social factors assess a company's impact on people, including its treatment of employees, community engagement, and product safety.
Governance factors evaluate a company's management and structure, including its leadership, transparency, and accountability.