Your guide to ESG reporting: reporting obligations, best practices, and tips
The ESG reporting wave is sweeping across Germany and bringing major challenges for all areas of the company.…
n the one hand, the call for green corporate policies from consumers and customers is growing ever louder. On the other hand, laws and regulations are increasingly defining how companies should act with regard to environmental, social, and governance matters. Even if most people only come into contact with ESG through legislation: managing ESG activities is, as of now, becoming part of corporate governance.
How you can take your ESG performance management to the next level, you can find out here.
ESG stands for Environment, Social and Governance, and forms the basis for greater sustainability in companies. With ESG performance management, you can systematically capture, analyze and optimize your company’s performance in the areas of environment, social and governance. For companies, recording the status quo is important in order to check whether the current requirements are being met. At the same time, managing ESG performance helps to find concrete solutions for more sustainability within the value chain.
This opens up various opportunities for companies:
Competitive advantage over companies with few ESG initiatives
Attractive to investors and other stakeholders
Mitigation of future problems by identifying ESG risks
Optimizing relationships with stakeholders such as customers and partners
Achieving long-term sustainability goals
You want to optimize your company’s ESG performance but don’t know where to start? Here are a few tips on how your company can become more environmentally friendly and more socially responsible:
ESG as DNA
Integrate ESG performance management into your business strategy and ensure that it is implemented effectively.
Involving stakeholders
All relevant stakeholders such as employees, customers and investors should be involved in ESG management. The perspective of everyone affected and involved helps you identify risks and identify opportunities in all areas.
Continuous tracking of measures
Regularly check whether ESG performance meets your expectations. Continuous analysis of measures to improve your own footprint and the CO2 emissions balance helps to review whether the goals you have set are feasible.
Training employees
In particular, employees who have a direct influence on the factors environment, social and governance should receive regular training. Legal and internal company changes should also be addressed in this context.
Transparency
Being transparent about ESG performance and current initiatives opens up space for new ideas. At the same time, transparent reporting enables all stakeholders to understand the ESG measures.
For companies, ESG performance management offers the opportunity to systematically improve their sustainability performance while remaining economically viable. But where many opportunities sprout from the ground, challenges also proliferate:
Poor-quality data
The quality of the data to be analyzed has a direct impact on the development of successful ESG measures. So consolidate all collected data from different sources and regions to obtain as holistic a picture as possible.
Complex supply chains
Depending on the type and size of your company, the supply chain can be correspondingly complex. Comprehensive monitoring is a challenge, especially for globally operating companies. Appropriate risk management software provides support here to comprehensively cover all important areas.
Regulatory changes
Whether CSRD, CSDDD or LkSG, new laws and guidelines mean that companies regularly have to deal with new requirements.
Lack of comparability
Due to the various options for analysis and reporting, there is no specific framework, which makes it difficult to compare and evaluate reports.
Organizational hurdles
If you want to implement ESG performance management, this means a high organizational effort, as all sub-areas within the value chain are reviewed.
Software is always helpful when monitoring corporate goals. For ESG performance management, however, software is far more than a useful tool for analysis and reporting.
The ESG software supports companies in complying with legal requirements while identifying opportunities for improvement at all levels. By defining KPIs, the right ESG software lets you see immediately which areas need greater protection for the environment and people.
Software for ESG performance management is also useful for keeping up with the constant updates to requirements and laws, as well as changes in the market and within the supply chain.
To manage the overall performance of the ESG areas, software is indispensable because once implemented it saves resources and takes a closer look where the human eye is prone to selective ignorance.
Before ESG software becomes part of your company culture, you should make sure the topic itself becomes part of the company’s DNA. First and foremost, strategic management must understand how ESG will become part of the operating culture and communicate this knowledge within the company.
In the next step, you need to think about the ESG software: What functions does it need to fulfill? How high may the costs for the software be? Which employees should be involved in selecting the ESG software?
Now you should set clear goals with regard to environment, social issues, and corporate governance that are relevant to your company.
After your company has found the right software for ESG performance management, it must be implemented into the existing processes. Therefore, check in advance which departments and people are directly and indirectly affected by the software. At the same time, you should check which software solution is best suited for integration into your existing MarTech stack.
To ensure that all employees understand the purpose and importance behind the ESG software, training is recommended. This motivates the affected employees from the outset to keep track of ESG goals.
With the reporting of the ESG software you can continuously check with your team whether the goals are being met and share the insights transparently with all stakeholders.
If the ESG software is effectively integrated into the company’s strategic management, you will achieve your sustainability goals while remaining profitable.
Are you looking for ESG software to optimize your performance? At Matchilla, we focus intensively on the software market for ESG, CSRD & co. – and we continuously screen the German-speaking market in particular. Our database contains all providers relevant in the German-speaking region – recorded with hard and soft factors such as features, interfaces, scope of support, industry expertise, pricing, reporting standards, etc.
You can now benefit from this database as well as from our expertise from numerous successful ESG matchings. Simply use the following Match Assistant, which you can complete in just a few minutes.
We compare the specifications and individual criteria you provide with our database and present you with the three most relevant providers in a shortlist – we call it Matchboard. In the Matchboard, you can compare everything at your leisure and ultimately make a well-informed decision.
The best part: Comparing software providers and the matching on Matchilla are completely non-binding, free of charge for you and anonymous with respect to the providers (see FAQ).
If you would like to know which solution will best support you with the various tasks in the future, sign up on the platform for free or fill out the following Match Assistant!
Providers in matching: 178
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Searching for suitable ESG service providers is easy and super fast with Matchilla. Got in touch, formulated specifications, and within a few days the results were there. Through this approach, we received information about providers we hadn’t even heard of before. Real added value.

I was convinced by the short, clear lines of communication at Matchilla: Our specific needs are understood immediately, analyzed perfectly, and matched with the right providers in a short time. Matchilla’s platform works quickly and easily, and guides you precisely through the provider selection process.

Matchilla’s approach is brilliant: I no longer have to painstakingly research consultancies and software providers and fight my way through countless comparison portals—the right providers, so to speak, come to me—with just a few minutes of effort. The matching process saves us a lot of resources.
Ulrich Theves is Head of ESG Matching at Matchilla and is heavily involved in technical solutions (i.e., software and tools) in the sustainability space. He has one of the best overviews of the market and shares his expertise from numerous customer conversations in the MatchZINE.
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