Polluter pays principle
Industrial companies must demonstrate their performance in avoiding or reducing theirCO2 emissions. For unavoidable emissions, offset models with carbon sinks come into question in the Net Zero scenario – i.e. measurable successes through neutralization of CO2 emissions. The main challenge here is the reliability of the neutralization.
Sustainability and value
Demand from private and institutional investors for investments in line with ecological and social criteria is growing. In this context, sustainability is a mandatory topic in companies in general and an important part of capital market consideration and communication in particular.
Companies need to be aware of the direct impact of environmental, technological and social change on their business model and anticipate it through their own entrepreneurial initiatives. Because in the future, corporate success will be measured by the extent to which they create and credibly present sustainable value for all stakeholders – not just shareholders.
This means that companies are faced with the task of assuming social and ecological responsibility and anchoring it in their business model. Purpose Growth and “Nature Positive” alignment are essential components of entrepreneurial success.
The challenge for companies at a glance
- Traditional, purely profit-maximizing business models are in danger due to current EU regulations on sustainability
- Businesses are challenged to contribute to slowing climate change, adapting to climate change, protecting water resources, and conserving and promoting biodiversity
- Need to reduce and/or replaceCO2-emitting processes - foreseeable residual emissions must be neutralized in C sinks.
- Taxonomy, CSRD, SDG and CSDD require solid, comprehensible reporting of non-financial key figures as well
- In addition to regulatory and political pressure, the expectations of society, especially customers and employees, are growing not only in the supply chain
- Fulfillment of requirements for companies that go beyondCO2 reduction(e.g. protection of biodiversity and surface waters in the "Nature Positive" approach), by preserving and expanding the ecosystem services of the forest
