ESG: soon the accountant will also check for sustainability
This year, due to a set of EU regulations, ESG is high on the corporate agenda. ESG stands for Environmental, Social and Governance and refers to the three central factors by which the sustainability and social impact of an investment can be measured.
The 'Green Deal'
'The Green Deal of EU Commissioner Frans Timmermans aims to encourage companies to communicate the extent to which their activities contribute to the European ambition to emit 55% less CO2 by 2030 (compared to 1990) and to be completely energy-neutral by 2050. To this end, a framework has been drawn up, the EU Taxonomy, which indicates per sector which economic activities have an impact on the climate and which measures must be taken in order to qualify as a green investment.'
Motivation for preservation
'Most companies have been working on these themes for a long time. It is therefore not the case that ESG is only experienced as a burden. We noticed from our roundtable meeting that CFOs are intrinsically motivated to make their company (and thus our society) more sustainable. The fact that the EU sets clear frameworks ensures a uniform measurement of performance in the areas of sustainability, social affairs and governance, and thus greater clarity for all stakeholders. But regulation is not an end in itself and it also means that a lot has to change in terms of working methods, targets and internal and external reporting.'
The contribution of the Finance & Technology team
'The challenge for the CFO'
Our areas of expertise
Boer & Croon organised a roundtable meeting on 31 March with twelve CFOs from different sectors to discuss what this means for their organisation and what they are up against.