Sustainability as an opportunity

By doing business sustainably, you mitigate the risks arising from current trends. It can help you get better financing or new talent for your future growth. At BDO, we believe that the future favours those who are prepared. We will be your partner on the road to a more sustainable business.

European legislation

Europe has set itself the ultimate goal of being carbon neutral by 2050 and sustainable. To achieve this goal, it has developed a roadmap for transforming the European economy, the Green Deal. The related legislation is still evolving. The Green Deal is intended to set a binding framework that will lead to a 55% reduction in EU greenhouse gas emissions by 2030 compared to 1990. This is the current Fit for 55 package, which introduces new rules in areas such as climate, energy and transport.

Finance plays a central role in the transition to carbon neutrality. To channel it into sustainable projects and companies, an assessment framework for sustainable activities called the EU Taxonomy has been developed. It classifies sustainable activities in six main areas.

ESG

ESG is an assessment framework for three areas of corporate governance. It looks at how environmentally friendly a company is, how it treats people and how it manages its business.

For a company to understand and realise its full ESG potential, it is beneficial to set the right ESG strategy. This is a long-term plan of action to mitigate risks and move the company forward in sustainability to be competitive and attractive to investors, employees and customers.

We will work with you to develop and put in place an effective ESG strategy that reflects your company's uniqueness and helps you compete well into the future.

Benefits of responsible business

• Competitive advantages

More than 50% of Czechs say that corporate social responsibility can influence their purchasing decisions (Ipsos, 2020). Up to 65% of Czechs are willing to pay extra for a socially responsible product.

• Benefits on the labour market

Up to 78% of people care whether an employer behaves in a socially responsible way (Ipsos, 2019), including up to 94% of university graduates

• Supply chains

Large companies assess the sustainability of their subcontractors – preference for sustainable

• Green financing

The banking sector must prioritise lending to sustainable companies

Why care about the EU Taxonomy?

Similar classification systems are currently being developed around the world. The aim is to create a common guide for investors and companies on which activities can be considered sustainable and which cannot, based on technical screening criteria developed for each of the six EUT areas.

ESG reporting

EU Regulation on the Taxonomy of Sustainable Activities effective from January 2022. Investors are obliged to disclose sustainability information under the SFDR and therefore require this data from their corporate clients as well. Based on the CSRD, from 2023 large companies with more than 250 employees and turnover of more than EUR 50 million (approx. CZK 1.3 billion) will have to report their non-financial ESG data (how their operations affect the environment, what carbon footprint they produce or what impact they have on society) in addition to their traditional financial statements.

Large companies already require this data from their suppliers and in the future clearly those SMEs that measure and document their ESG data not only for their business partners will be favoured. In addition, preferential financing based on good ESG indicators will apply to all companies in the market.

Our ESG services

BDO experts have the knowledge and experience to help you develop or improve your ESG strategy, policy and reporting.

Training in sustainability, ESG and green legislation

ESG analysis, including identification of ESG risks and opportunities for further development of ESG rating and comparison with competitors

Setting up and improving processes subject to ESG reporting

 Measurement of carbon footprint, e.g. GHG Protocol methodology (scope 1–3)
Preparation of report and action plan for carbon footprint reduction

 Introduction of non-financial reporting according to EU taxonomy, NFRD/CSRD or GRI
Auditing of non-financial information and providing third-party assurance on ESG

Advice on green finance

Kontaktní osoby

Our team of experts is ready to help you find a suitable solution, implement the system and design a customized service for you.