ESG consulting & auditing
ESG - Environmental, Social, Governance - has long been more than just a trend. Companies are increasingly obliged to record, evaluate and report on environmental, social and management-related aspects in a structured manner.
Taking ESG seriously means: in addition to regulatory requirements such as the CSRD (Corporate Sustainability Reporting Directive), it is also about securing the future, reputation management and access to financing.
The core issues of ESG are omnipresent and their increasing importance is supported by legislation. However, it is not always clear what this means in general and in particular for your business activities. We explain it for you.
Current draft of the Omnibus I package
Revision of the guidelines on sustainability topics
At the end of February 2025, the European Commission presented a proposal to simplify regulation in connection with the European Green Deal in order to reduce the burden on companies. Specifically, there are proposed amendments to the CSRD, ESRS, EU Taxonomy and the Supply Chain Directive CSDDD. It is still in draft status and implementation in this form is not yet certain.
We have summarised the latest information for you: > To the details of the Omnibus I package
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What does ESG actually mean?
The three letters stand for different but interrelated aspects of sustainable corporate management:
- E = Environment
- S = Social
- G = Governance (responsible corporate management)
The aim is to develop sustainable and responsible strategies and business models from these areas for our own business activities and to make investment decisions.
ESG Know-How I
Why has ESG become so important?
Global and regional climate developments require action, and the EU has launched the Green Deal - a strategy to become the first major world region to become climate-neutral and thus reduce net greenhouse gas emissions to zero by 2050. The associated environmental and energy targets for 2030 are
- Reduction of greenhouse gas emissions by at least 55 % compared to 1990
- Share of renewable energies in total energy consumption: at least 27 %
- Energy savings compared to the business-as-usual scenario: at least 30 %
The EU is investing over EUR 1 trillion in energy infrastructure by 2030 in the form of green investments to support this Green Deal.
ESG Know-How I
Which legal bases apply?
A clear definition of the term “environmentally sustainable” is necessary to guide investments in environmentally sustainable projects and economic activities. This was defined in the - not uncontroversial - EU Taxonomy Regulation 2020/852 (EU Tax Regulation), which characterises which economic activities can be described as environmentally sustainable (according to Art. 3). The six defined environmental objectives according to Art. 9 of the EU Tax Regulation are
- Climate protection
- Adaptation to climate change
- the sustainable use and protection of water and marine resources
- the transition to a circular economy
- Prevention and reduction of environmental pollution
- the protection and restoration of biodiversity and ecosystems.
To date, environmental targets 1 and 2 (climate targets) are in force, while the EU Commission plans to implement environmental targets 3 to 6 from 2023.
In addition to the EU Tax Regulation and delegated acts of the EU Commission, the following regulations also apply in connection with climate-friendly reporting:
- CSRD - Corporate sustainability reporting directive, The EU directive on sustainability reporting (entered into force on 5 January 2023) will be implemented in Austria through the “NaBeG”, the EU deadline for national legislation expired on 6 July 2024. It is necessary to wait for the legal implementation in Austria; despite this existing legal uncertainty, implementation in accordance with CSRD requirements is recommended.
- ESRS - European Sustainability Reporting Standards, European Sustainability Reporting Standards, the adoption of European standards for sustainability reporting by the European Financial Reporting Advisory Group, based on the CSRD (first set of sector-independent ESRS standards already in force (a delegated act of the EU was published on 22 December 2023), second set of sector-dependent ESRS standards and separate standards for SMEs are in consultation or in preparation.
- CSDDD - Corporate Sustainability Due Diligence Directive, to embed sustainable and socially responsible behaviour in companies. In force since 13 June 2024 (2024/1760). A transitional period for legal implementation in Austria until 26 July 2026 and gradual entry into force has been agreed. The first reports are to be prepared in 2029 for the 2028 reporting year; from 2030, companies with 1,000 employees or more and a turnover of EUR 450 million will be obliged to report. The CSDDD is a declaration on due diligence obligations with regard to human rights and the environment. For example, a strategic climate plan to limit global warming to 1.5 °C and the status and measures regarding predominantly international human rights (e.g. child labour, forced labour, discrimination, fair wages) and environmental rights (e.g. hazardous chemicals, hazardous waste, pollution from transport) etc. must be submitted.
ESG Know-How II
What are environmentally sustainable economic activities?
Article 3 of the EU Tax Regulation defines a number of key points which economic business activities may be classified as environmentally sustainable (taxonomy-compliant economic activities according to the NACE Code):
- The activities must contribute substantially to the realisation of one or more of the environmental objectives.
- This must not significantly harm any other environmental objective (“DNSH”/do not significantly harm).
- The minimum social standards such as the principles of the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights including the ILO (International Labour Organisation) Declaration and the International Bill of Human Rights must be observed (comply with minimum safeguards).
Are you affected by sustainability reporting?
You must deal with this if you are one of the following companies (please note, subject to the decision on the Omnibus I package/possible adaptation of the threshold values!)
Companies based in the EU
- All large companies if two of the three criteria are met (large corporations pursuant to section 221 (3) UGB)
- > 250 employees
- > EUR 50 million turnover
- > EUR 25 million balance sheet total
- Listed companies
Companies based outside the EU
- Group sales in the EU > EUR 150 million and
- at least one EU subsidiary (large or listed on the capital market) or
- an EU branch (> EUR 40 million turnover in the EU)
ESG Know-How III
When do sustainability reports have to be submitted?
The following financial years relate to the first-time application of the CSRD (in Austria, subject to timely legal implementation) Attention, due to Omnibus I and Stop-The-Clock-Initiative now partly postponed):
- From 01.01.2024 Large PIEs/public interest companies that already report in accordance with NaDiVeG (first reporting obligation in 2025 for 2024).
- From 01.01.2025 All large corporations, SMEs (first reporting obligation in 2026 for 2025)
- From 01.01.2026 Listed SMEs with transitional provisions
- From 01.01.2028 non-EU companies (see above)
ESG Know-How IV
What does sustainability reporting need to include and how should it be done?
The reporting obligations are regulated in EU Tax Regulation Art. 8. The reporting on environmentally sustainable economic activities and the link to three key performance indicators (KPIs) are taxonomy disclosures relating to revenues/turnover, CapEx/investment expenditure and OpEx/operating expenditure. The Disclosure Regulation regulates the content and presentation of the information to be disclosed:
- the proportion of its turnover generated from products or services associated with economic activities that are categorised as environmentally sustainable in accordance with Art. Art. 3 and Art. 9, and
- the proportion of their capital expenditure and, where applicable, the proportion of operating expenditure related to assets or processes associated with economic activities that are categorised as environmentally sustainable in accordance with Art. 3 and Art. 9.
The reporting must be part of the management report, presented as a separate section and subsequently disclosed.
Is an audit of sustainability reporting by an independent third party required?
The sustainability reporting must be audited in order to ensure “reporting without greenwashing”. Limited assurance and non-financial reporting are mandatory. In future, an audit with reasonable assurance (equivalent to the traditional financial audit) is also planned.
The statutory auditors must audit the sustainability reporting. Member states have the option of authorising other registered auditors or alternative assurance providers for this audit. In this case, companies could also appoint another auditor.
Do you need to implement ESG requirements or prepare for future reporting obligations, or would you like to institutionalise your corporate contribution to safeguarding the future?
We provide you with expert, regulatory and economically realistic support.
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Your questions
Do you still have questions about ESG, CSRD, VSME or EU taxonomy?
We will be happy to answer them for you. We have summarised some FAQs for you here.
The criteria are the number of employees, sales revenue and total assets. The threshold values are currently (as of October 2025) still under discussion due to Omnibus 1. However, the first reporting date has been postponed by 2 years (e.g. from the 2025 reporting obligation to 2027).
An EU package to adapt existing regulations on sustainability reporting that has not yet been finalised. We are monitoring the progress on an ongoing basis.
The CSRD requires ESG reporting as part of the management report. We provide support in terms of content and structure. Whether and when this applies to your company will only become clear once the Omnibus 1 regulations have been finalised. The transition to national law - in Austria through the NaBeG - is another factor that must be taken into account.
Depending on the initial situation and possible use of resources, the time span ranges from 6 to over 12 months. We provide flexible support in modules or as an overall project.
