Danish businesses are in the middle of a major transition to cut emissions, reduce negative environmental impact, ensure good social conditions throughout the value chain and respect for human rights. With increasingly comprehensive legislation, stakeholder expectations, and reporting requirements, maintaining control and visibility is essential.
Environmental, Social, and Governance (ESG) factors are becoming central to how businesses operate and succeed in today’s economy. ESG is about managing, measuring and assessing sustainability impacts to ensure organizations can adapt to new expectations, while maintaining competitiveness and trust.
The environmental aspect of ESG focuses on mitigating climate impacts, adapting to a warming climate, advancing circularity, and protecting natural resources. . On the social side, ESG addresses the well-being of employees, human rights, communities, and society as a whole. This includes ensuring strong working conditions, promoting diversity and inclusion, and fostering a positive influence throughout the supply chain. Governance emphasizes transparency, ethical business conduct, and robust organizational structures — critical elements for building trust with stakeholders, investors, and customers.
The importance of ESG for Danish businesses has never been greater. New and stricter regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), are setting higher standards for ESG reporting. Adapting to these requirements is essential to maintaining compliance and safeguarding your reputation.