The transformation of the economy has lost some momentum due to Omnibus in Europe and the harsh rejection of ESG in the US. Nevertheless, many companies continue to pursue their sustainability agenda, the large ones because of investors and the realization of the economic benefits, the small ones because of their supply chain dependency and ultimately all companies because of credit dependencies and reputational requirements. This is why well-founded ESG management skills within companies remain absolutely essential.

Managing a company’s sustainability performance is the new paradigm discipline of performance management. At the operational level, it primarily concerns the areas of investment accounting, budgeting, costing and the management of corporate risks and GHG emissions (carbon accounting, etc.). The role of ESG in the functional areas and in the company’s main processes as well as the interaction with financial controlling is also of fundamental importance. At the strategic level, considerations must be formulated as to how ESG requirements can be taken into account in the corresponding management tools, e.g. in the Sustainability Balanced Scorecard (SBSC).

Climate transition plans are part of strategic corporate management. They reflect the seriousness and professionalism of companies’ climate management. Required by regulators and expected by investors, they are becoming a core element of emissions and corporate management. Ultimately, this is basic know-how for the finance function.

The need for companies to draw up climate transition plans is driven by three forces: European regulation and supervision (CSRD, CSDDD, CRD VI / CRR III etc.), the desire of institutional equity and loan capital providers for emissions transparency and by internal, efficiency- and risk-driven professionalization efforts in corporate management.

These described ESG competencies for corporate management can be acquired and deepened in a structured, well-founded and practice-oriented manner by participating in the certificate programs of the EBS Executive School:

• ESG Performance Management (EBS) / www.ebs.edu/epm
• Climate Transition Planning (CTP) / www.ebs.edu/ctp