Against “fear marketing” in CSRD implementation

Is ESG really that complex?

Unfortunately, in the field of ESG consulting and software, inappropriate “fear marketing” is emerging. The following messages are being sent:

• Almost 1,200 data points had to be taken into account.
• The materiality analysis is extremely complex and requires numerous parameters.
• Without specialized software or AI, the challenges can hardly be overcome.
• Advice is indispensable for successfully mastering the process.

Such messages suggest that CSRD is an overpowering challenge, a kind of indomitable hydra created by bureaucrats. Companies see complexity and hurdles instead of recognizing potential benefits. The consequence: instead of taking action, they fall into a state of shock.

There are certainly requirements and standards that need to be taken into account, and data collection can also be time-consuming. Nevertheless, ESG reporting is not an end in itself. It serves to exploit strategic opportunities, minimize risks and create clear added value for the company. Fear marketing, however, narrows the perspective and obscures the view of the actual core: the sustainable and strategic handling of ESG issues.

Three theses for CSRD implementation

1. Pragmatism instead of overwhelming
   ESG reporting should be introduced step by step. Concrete and comprehensible approaches are needed to help companies make a pragmatic start with ESG.
2. Software as a supporter, not a threat
   Software solutions can play an important role in helping companies to simplify processes and analyze data effectively. However, they should be seen as an aid – not as a mandatory requirement or panacea.
3. Self-help consulting
   Consulting must aim to enable companies to become independent. Instead of creating dependencies, advisors must impart knowledge and demonstrate strategies for action.

Counting and measuring are not the essentials

ESG reporting is not an end in itself. Conceptual clarity is crucial: What does ESG mean for the company? What strategic opportunities can arise? How can ESG be integrated in such a way that it supports the company’s objectives? The CSRD in particular offers companies considerable and under-discussed scope to implement reporting in a gradual and appropriate manner. Instead, exaggerated warnings and claims of complexity create unnecessary barriers to entry that undermine the potential of ESG.

A call for clarity and support

Communication around ESG should aim to encourage companies to take the first step. Counting and measuring are tools, not goals. Understanding ESG as an integral part of the corporate strategy and thus creating added value – that should be the goal: for the organization, the stakeholders and the environment. An approach that focuses on clarity, pragmatism and genuine support will not only be more successful in the long term, but will also strengthen the acceptance and benefits of ESG, CSRD and the EU.