Sustainability: more and more companies are required to report
For many companies, the next sustainability report is due in the coming weeks. As every year, they must invest significant effort to compile all figures, data, and facts on environmental, social, and corporate governance topics. The number of companies required to produce sustainability reports continues to grow.
EU directive has wide-reaching impact
The European Union is increasing pressure: the draft directive introduced last April aims to significantly expand the number of companies subject to reporting requirements. Future criteria are expected to include a balance sheet total of over €20 million, net turnover of more than €40 million, and/or at least 250 employees. Companies that meet two of these three criteria will be subject to the extended reporting obligation. Estimates suggest that in Germany the number of reporting companies will rise from 500 to 15,000. Across the European Union, this could amount to around 49,000 companies.
Extended reporting requirement to take effect from 2023
The extended obligation to submit a sustainability report is expected to apply for the first time to the 2023 reporting year. For small and medium-sized enterprises, it will apply from 2026. This depends on the directive being transposed into national law by 1 December 2022. Potentially affected companies should therefore start preparing early and familiarise themselves with the requirements.
Turning obligation into opportunity
The fact is: sustainability reporting will continue to grow in importance. This makes it all the more essential to integrate sustainability topics more strongly into communication today. An obligation can be turned into an opportunity. What is needed is classic infotainment that appeals to both reason and emotion.
The mandatory part of sustainability reporting is typically based on established standards and clearly defined metrics and criteria. However, to reach all stakeholders emotionally, additional journalistic storytelling formats are required. Whether background stories, reports, or interviews; infographics, photo series, or opinion pieces—only narratives that go beyond pure data bring sustainability to life.
The range of formats for sustainability communication is broad: depending on the target group, it spans online and print magazines, blogs and social media, to podcasts and video content.
Credibility and transparency
Information once collected can ideally be distributed across multiple channels—not only at the time the sustainability report is published, but throughout the entire year.
A key prerequisite for successful sustainability communication is credibility. It requires transparent and verifiable reporting: measures and achieved goals must be supported by data, implementation challenges must be clearly stated, and external voices should be included to contextualise sustainability performance.
Companies that fail to meet these requirements risk being accused of greenwashing. The only way out of this tension is through transparency and authenticity.
