ESG & Sustainability

Why is ESG and sustainability important for businesses?

Sustainable development means meeting present needs without compromising the ability of future generations to meet their own. It aims to balance economic prosperity, with social equity and environmental preservation (in line with the triple bottom line approach: people, planet, and profit).

E, S, and G (namely Environmental, Social and Governance) criteria are now fundamental for both corporate strategy and investment. These represent a key shift in the economy and everyday decision-making. All stakeholders are increasingly recognizing that ESG principles help maintain and create value, overcoming short-term complexities and allowing for improved long-term planning.

Companies, investors and consumers are focusing more on the value of corporate social responsibility (CSR), recognizing the positive impacts the private and public sectors can deliver by operating in an ethical manner.

ESG is therefore shifting from managing risks to creating new value. Embracing sustainable growth is key to building strong and resilient businesses.

By working together, we can positively impact the planet and society, supporting this crucial transformation towards a more sustainable future.

Our ESG capabilities & services

Silvan Jurt

Partner, Head Corporate Sustainability Services

KPMG Switzerland

Thomas Oschlisniok

Partner, Head of Business Services Transformation

KPMG Switzerland

The Importance of ESG and Sustainability for businesses

Companies face many environmental, social, and governance (ESG) trends and challenges in today's fast-changing business world.

Identifying them helps businesses meet stakeholder expectations, while supporting sustainable growth and increasing resilience in a competitive market.

Regulators and investors around the world are recognizing how material these impacts are, and require corporates to increasingly identify, assess and disclose both their impacts on the environment and society (impact materiality), and the environmental and socials risks and dependencies which might affect their financial performance and operations (financial materiality).

The three pillars of ESG: Environment, Social, and Governance

Environmental (E)

Managing Climate and Resource Risks

The environmental pillar of ESG focuses on how businesses interact with the planet’s systems. Addressing climate change, resource efficiency, and biodiversity loss is critical. Companies that integrate low-carbon strategies, circular economy principles, and responsible resource management can reduce risks, enhance compliance, and strengthen their market position.

Social (S)

People, Communities, and Ethical Responsibility

The social pillar of ESG focuses on how businesses impact their employees, communities, and society. Companies that prioritize social responsibility foster a strong corporate culture, build consumer trust, and contribute to a more resilient economy.

Governance (G)

Ethics, Compliance, and Corporate Integrity

Governance is the foundation of ethical business practices. Companies that embrace good corporate governance ensure transparency, accountability, and long-term financial stability. A sustainable culture of innovation enables businesses to adapt and grow while maintaining integrity.

Key areas of Responsibility:

Climate change and climate risk assessment

Companies must identify and mitigate risks related to climate change, including extreme weather events, regulatory shifts, and carbon pricing policies. Conducting Climate Risk Assessments (CRA) can help businesses adapt to future challenges by simulating a range of potential societal, economic and warming scenarios.
Carbon Footprint Reduction and Net-Zero Strategies

Setting Science Based Targets Initiative (SBTi)-aligned goals and developing Climate Transition Plans (CTP) are essential for reducing greenhouse gas emissions (GHG). Businesses can achieve net-zero by setting the right foundations and (for example) investing in renewable energy, achieving raw material efficiencies, and designing sustainable supply chains.
Resource efficiency and circular economy

Sustainable business models prioritize waste reduction, material reuse, and recycling. Implementing a circular economy approach reduces environmental impact and optimizes resource use. CE alone has the potential to reduce emissions by half.
Biodiversity protection and Natural Resource Management

Ecosystem degradation affects supply chains and the broader economy. Companies must protect natural resources, prevent soil depletion, erosion, and deforestation (EUDR), and address water shortages to ensure long-term sustainability.
Sustainable Materials and Waste Management

Managing e-waste, toxins, and packaging materials responsibly reduces pollution and supports environmental conservation. Businesses can minimize their ecological footprint by using biodegradable packaging, eco-friendly materials, and improved waste management systems.

Diversity, Equity, and Inclusion (DEI)

A diverse workforce drives innovation and improves business performance. Companies should promote equal pay, gender equity, and inclusive hiring practices to create fair opportunities for all employees.
Human Rights and Fair Labor Practices

Ethical labor standards are crucial to responsible business operations. Organizations must ensure fair wages, safe working conditions, and human rights protection across their supply chains, eliminating risks like modern slavery, child labor, and worker exploitation.
Employee Well-being and Engagement

A positive work environment enhances productivity and retention. Investing in mental health programs, flexible work policies, and professional development opportunities helps create a motivated workforce.
Community Engagement and Social Impact

Businesses play a vital role in education, social equity, and economic development. Corporate Social Responsibility (CSR) initiatives, such as philanthropic projects and volunteer work, strengthen relationships with local communities.
Data privacy, cybersecurity, and responsible AI

In the digital age, data protection is essential. Companies must comply with GDPR and implement cybersecurity measures to protect customer and employee data. Ethical AI deployment ensures fairness, transparency, and regulatory compliance.

Corporate Behavior and Ethical Leadership

Strong leadership is built on ethics & integrity. Companies must enforce responsible corporate behavior, ensure fair board compensation, and uphold leadership accountability to maintain trust among investors, employees, and stakeholders.
Anti-Corruption, Fair Competition, and Conflict Prevention

Strict anti-corruption measures are essential to avoid financial and reputational risks. Businesses must support free competition and prevent conflicts of interest to maintain fair market practices.
Sustainable Finance and Transition Finance

Companies and financial institutions must integrate sustainable finance principles into their investment and capital allocation strategies. Responsible asset management ensures that financial resources align with ESG objectives, considering long-term environmental, social, and governance risks. Investors increasingly demand ESG-aligned portfolios that prioritize climate resilience, ethical governance, and sustainable growth.
ESG Reporting and Regulatory Compliance

Companies must meet growing sustainability disclosure requirements, including NR reporting (non-financial reporting) and ESG ratings & indices. Adhering to standards such as TCFD, IFRS S2, and CSRD ensures accountability and trust.
Cybersecurity, Data Governance, and Responsible AI

As digital threats evolve, companies must strengthen data protection, cybersecurity, and responsible AI governance. Ensuring compliance with privacy laws safeguards corporate reputation and mitigates regulatory risks.

Building a Resilient and Sustainable Future

By integrating environmental responsibility, fostering social equity, and upholding strong governance, businesses can create a resilient and future-ready organization. Addressing climate risks, promoting inclusive workplaces, and ensuring ethical leadership are no longer optional — they are essential for long-term success.

Companies that embed sustainable finance, circular economy principles, and transparent ESG reporting into their core strategies will not only meet regulatory expectations but also drive innovation, strengthen stakeholder trust, and secure competitive advantages.

Sustainability is not just about compliance — it’s about creating lasting value for businesses, society, and the planet.

Global and Swiss Sustainability Strategies: The UN 2030 Agenda and Switzerland’s Sustainable Development Strategy

UN-Agenda 2030 for a sustainable future

In 2015, the United Nations created 17 Sustainable Development Goals (SDGs). These goals aim to support social, economic, and environmental sustainability by 2030 for all UN member countries.

The 17 goals focus on the most urgent challenges of our time and provide politicians with a framework for action. The SDGs provide companies with a basis for setting their corporate strategy.

Developments in Switzerland (2030 SDS)

The Swiss Federal Council outlined the political implementation of the SDGs in Switzerland. This is part of its sustainability development strategy for 2023 (2033 SDS).

This strategy created guidelines for future federal policy. It set goals for 2030 and outlined domestic and foreign priorities, each with its own political focus.

Thus, companies can already get an idea of what to expect in these areas and make corresponding adjustments.

Focal points

Sustainable consumption and production
Climate, energy and biodiversity
Equal opportunity and social cohesion

An action plan for 2021 to 2023 outlines the sustainability strategy for 2030.

As a result, these changes will also affect the operational environment of companies.

Because this is the only way to take advantage of opportunities and counteract risks in a timely manner.

Our capabilities - How we support you in your ESG journey

No matter where you are in your sustainability journey, we can help you find long-term benefits for your business.

Our ESG services aim to do more than just strategy. They are a key part of a client’s ESG transformation, risk, tax, advisory, reporting, and assurance needs.

With top industry experience, data-driven technology, and global partnerships, you can turn insights into opportunities. This benefits your business model, your people, and our planet.

ESG strategy & transformation

Sustainability strategies create value - for society and for businesses. We support you with integrating sustainability in your corporate strategy.

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Governance

Adhering to ethical standards for long-term growth. We assist your company in developing and implementing a sustainable corporate governance.

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Climate, nature and decarbonization

Achieving net-zero emissions by 2050 is now a law. This emphasizes the need to reduce carbon footprints across sectors. We help you on the path to sustainable growth and a low-carbon future.

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Human Rights

Embedding human rights into business practices is critical. Ensure compliance, mitigate risks, and foster sustainable impact with tailored solutions.

Reporting & assurance

Achieving transparency and making sustainability reports easier to compare is essential. We support you in the implementation of the new requirements.

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Sustainable finance

Sustainable finance as a strategic priority. We help you ensure transparent capital allocation and effective risk management in the financial system.

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Sustainable Supply Chain Management

Transparent supply chains as a crucial factor for business success. We provide end-to-end support with optimization measures.

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Circular economy

Changing the use of resources, reducing waste, reducing pollution and saving costs. We accompany you into a more sustainable future.

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ESG in tax

Shaping transformation with tax-related matters. We support you in embedding tax in your ESG strategy and assessing the impact on your financial performance.

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ESG in deals

Value creation in mergers and acquisitions through sustainability. Learn how to protect and enhance the value of your deal by integrating ESG considerations.

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