Many companies must act promptly in order to comply with the stricter legal requirements for ESG reporting.
Climate change has become an urgent global challenge, which is why sustainability issues are gaining fundamental importance.
One response to this situation is provided by the Paris Agreement on climate protection. Many countries have signed the treaty, committing themselves to take measures to mitigate global warming. In addition, the EU has established the Green Deal, which aims to reduce greenhouse gas emissions by 55% (compared to 1990 levels) by 2030. Germany has even set a target of a 65% reduction.
In order to achieve this goal, multi-layered measures must be taken, for example in the areas of mobility, real estate and the energy industry. For this reason, the legislator requires certain companies to implement more sustainability as part of their reporting obligations. complex measures in the areas of mobility, real estate and the energy industry. For this reason, the legislator requires certain companies to implement more sustainability as part of their reporting obligations.
The CSRD guidelines form the framework for reporting, and the ESRS (European Sustainability Reporting Standards) provide the substantive aspects to be covered. These sustainability aspects are summarized under ESG (Environment, Social, and Governance).
The circle of companies subject to reporting obligations has been expanded through legal tightening. From 01.01.2025, not only companies listed on the capital market must publish their sustainability report, but also larger companies that meet at least two of the three criteria:
- Revenue ≥ €40 million
- Total assets: ≥ €20 million
- Employees: ≥ 250
Based on these criteria, many companies, including larger car dealerships, are affected. Swift action is required in this regard. The ESG concept should be in place by the end of 2023, as implementation and data collection will take place in 2025.
Further tightening measures will follow. As of January 1, 2026, small and medium-sized enterprises must also publish an ESG report as part of their management report if two of the three criteria are met:
- Revenue ≥ €700,000
- Total assets: ≥ €350,000
- Employees: ≥ 10
The more stringent requirements underline the need for many companies to look more closely at ESG and reporting on it.
Find out more about the ESG criteria in our article.