ESG: Sustainability as a Strategic Success Factor | springerprofessional.de

Springer Professional

nach oben

2024 | Buch

Kapitel lesen Erstes Kapitel lesen

ESG: Sustainability as a Strategic Success Factor

verfasst von: Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Verlag: Springer Fachmedien Wiesbaden

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

Inhaltsverzeichnis

Über dieses Buch

More and more investors have integrated ESG criteria into their investment criteria, and an increasing number of banks are supplementing their lending guidelines with ESG aspects. With a lived ESG strategy and ESG communication, companies consequently become more attractive to investors and banks.

This book aims to show entrepreneurs and managers how to develop a convincing ESG strategy and how to communicate it professionally.

Anzeige

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract

Four central challenges for companies in the current era are discussed: geopolitical conflicts, societal change, technological innovations, and sustainable corporate engagement (Sustainability Purpose). The role of ESG criteria (Environment, Social, and Corporate Governance) as a response to these challenges is emphasized. Understanding and adapting to these aspects can help companies meet their stakeholders, create value, and adapt to dynamic market trends.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 2. The Origin Story of ESG

Abstract

The incorporation of sustainability aspects and ESG (Environment, Social, Governance) into economic decisions has a long history, ranging from socially responsible investments (SRI) and boycott movements to the current dominance of climate change. This article outlines the emergence and development of ESG from its beginnings in religious groups of the eighteenth century, through the growing influence of social and political movements in the twentieth century, to the establishment of ESG as a fundamental concept in modern business practices. The analysis focuses particularly on the transition from a pure focus on shareholder value to a broader commitment to Corporate Social Responsibility (CSR), demonstrating that ESG is an already established and increasingly important dimension of capital market decisions.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 3. The European Union’s Green Deal—Trigger of the ESG Boom

Abstract

This chapter analyzes the role of the EU Taxonomy Regulation (2020/852) and the SFDR Disclosure Regulation in the integration and definition of sustainability in the business and financial context. It delves into the challenges and impacts of these EU directives on sustainability goals, environmental standards, and transparency in financial products. Furthermore, the text discusses the six environmental objectives of the taxonomy, the distinction between taxonomy eligibility and compliance, and the unintended effects of the SFDR regulation’s classification system. Controversies surrounding the inclusion of gas and nuclear energy in the taxonomy and the role of supervisory bodies in monitoring sustainability reporting are also highlighted. It is emphasized that, despite political influences and controversies, both regulations represent essential tools for the standardization and regulation of sustainability.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 4. Sustainability From a Capital Market Perspective

Abstract

This chapter provides a comprehensive overview of sustainability from a capital market perspective. It introduces various initiatives and organizations that set standards and frameworks for reporting and measuring sustainability in companies. These include the Global Reporting Initiative, the Sustainability Accounting Standards Board, the Task Force on Climate-related Financial Disclosures, the Sustainable Development Goals, the International Integrated Reporting Council, and the International Sustainability Standards Board. Each of these organizations is described in detail in terms of their role, influence, and importance for the integration of sustainability aspects into companies’ capital market strategies.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 5. CSRD: The Revision of the Non-Financial Reporting Directive

Abstract

The Corporate Sustainability Reporting Directive (CSRD) is a revision of the Non-Financial Reporting Directive and represents a significant step in the expansion of statutory sustainability reporting. It introduces the European Sustainability Reporting Standards (ESRS) and focuses on the materiality analysis as the core of CSRD reporting. The CSRD also stipulates where the report should be published and how it is integrated into European sustainability regulation. This chapter provides a detailed overview of the CSRD, its structure, its requirements, and its impact on companies and investors.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 6. The Development of an ESG Strategy

Abstract

Chapter 6 deals with the management of an ESG strategy and emphasizes the importance of an effective ESG management system. It discusses the specific requirements for small capital companies, listed companies, and family businesses. It stresses the need for executive support, the integration of ESG considerations into core business processes, and the establishment of robust data collection systems. In addition, the chapter examines the role of values, long-term orientation, community commitment, governance, succession planning, and external support in family businesses in implementing an ESG strategy. It concludes with general guidelines for organizing an ESG management system.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 7. The Management of an ESG Strategy

Abstract

This chapter focuses on the management of an ESG strategy in various types of companies: GmbHs, publicly traded companies, and family businesses. It emphasizes the need for an ESG management system that includes processes and procedures for setting goals and metrics, monitoring progress and setbacks, reporting, and engaging stakeholders. It addresses the specific challenges and opportunities that arise in the different types of companies. It emphasizes that the specific needs of the company, the industry, and regulatory requirements continuously influence the design and implementation of the ESG management system. Therefore, it is important to continually align the structure with the particular circumstances of the company while following best practices in ESG management.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 8. The Future of ESG Reporting

Abstract

This chapter examines the future of ESG reporting and the challenges it brings. It highlights the need for stronger standardization, particularly in light of the EU's introduction of the CSRD, and the role of technology in creating and distributing reports. Furthermore, it emphasizes the importance of employees and internal communication in ESG reporting. Despite advances in legislation and technology, the challenge remains to create a clear and honest picture of a company's sustainability profile and to avoid greenwashing.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 9. ESG and its Impact on Financial Indicators

Abstract

This chapter examines the impact of ESG factors (Environmental, Social, Governance) on the financial metrics of companies. It is argued that strong Corporate Social Performance (CSP), expressed in high ESG standards, often correlates with strong Corporate Financial Performance (CFP). The systematic consideration of ESG factors in corporate strategy can improve CSP and positively impact financial metrics. The chapter also highlights the role of ESG factors in investment decision-making and the increasing importance of ESG ratings. It concludes with a discussion on the challenges of integrating ESG factors and improving CSP, particularly in relation to the measurement, evaluation, and communication of ESG performance.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Chapter 10. The Role of Technology and Innovation in ESG and Sustainable Finance

Abstract

Chapter 10 examines the role of technology and innovation in ESG (Environment, Social, Governance) and Sustainable Finance. It emphasizes the importance of technology and innovation in the ESG landscape and discusses the use of digital tools and technologies to improve ESG data collection. Furthermore, it explores use cases for data-driven decision-making in ESG as well as the role of Big Data and Analytics. The chapter also highlights innovations in CO₂ reduction and energy efficiency, including practical applications of renewable energy technologies and case studies on the implementation of energy efficiency technologies. It investigates the use cases of Blockchain in ESG reporting and transparency, as well as the use of Blockchain to improve traceability in the supply chain. In addition, Artificial Intelligence (AI) and automation technologies are examined in terms of their applications to enhance ESG decision-making and analysis. The chapter concludes with a look at the future of technology and innovation in ESG.

Klaus Rainer Kirchhoff, Sönke Niefünd, Julian von Pressentin

Backmatter

Titel: ESG: Sustainability as a Strategic Success Factor
verfasst von: Klaus Rainer Kirchhoff
Sönke Niefünd
Julian von Pressentin
Copyright-Jahr: 2024
Verlag: Springer Fachmedien Wiesbaden
Electronic ISBN: 978-3-658-45831-7
Print ISBN: 978-3-658-45830-0
DOI: https://doi.org/10.1007/978-3-658-45831-7

Premium Partner