Commentary: We were there before ESG and we will be there after it

I have taken the liberty of calling this short text, analogous to Palacký’s “we were under Austria and we will be after it”.

I have been dealing with sustainability since the 1990s (and I still think that it is a necessary starting point for the development of civilization). I have experienced various waves of interest and disinterest, resistance, questioning and new enthusiasm. The interest of investors, banks, businesses and the public sector in the sustainability and resilience of investments has brought new energy in recent years. ESG has become a mantra – it has been addressed by everyone and the results have sometimes been embarrassing, sometimes positive.

The multiple crises that Europe is facing today and pressures of a completely different nature than environmental or climate have brought about Omnibus – an effort to simplify already agreed and binding rules. Anyone who is active in the field can name the changes in format and context that Omnibus has brought.

How does this affect us as a company that has been engaged in GHG emissions accounting and climate consulting for ten years? Honestly: not dramatically. The carbon footprint is moving from “compliance” to business. Banks, investors, customers and public procurement will continue to demand data on emissions (especially Scope 1-3) – although not always directly “under the threat of CSRD”.

Although smaller suppliers have gained some protection against excessive data requirements, key data on the carbon footprint remain a business necessity. This is especially true in industry, food and energy, but also in other sectors in which we operate.

At the same time, the entire consulting sector in the area of ​​“sustainability” or “ESG” has been refined and continues to professionalize. We are often approached by clients who were not satisfied with the professional quality of the carbon footprint calculation or related consulting. At the same time, the number of companies involved in CDP – the global reporting platform for climate, water and natural resources – continues to grow. We are pleased to be its intermediary in the Czech Republic and Slovakia.

The seemingly “soft” area of ​​ESG actually requires a comprehensive and multidisciplinary understanding of how companies operate across sectors, as well as deeper expertise in the environment, transport or energy sectors. This is knowledge that cannot be acquired in two months. Measuring GHG emissions has become the new minimum for risk management. Companies without a basic understanding of their carbon footprint will be less likely to be financed, less competitive and more vulnerable to future regulations.

And the bottom line? We were there before ESG and we will be there after it.