ESG stands for Environment, Social and Governance – three areas that describe a company’s environmental, social and managerial responsibilities. When you combine each area, you get an overall impression of the company’s efforts and approach to sustainable development.
E
E refers to the company’s impact on the climate and environment, e.g. CO₂ emissions, energy consumption, waste management and resource utilisation
S
The S covers issues that affect employees, customers and local communities. This includes working conditions, diversity, safety and human rights
G
G relates to the company’s management structure, business ethics and transparency, e.g. in relation to risk management and the work of the board of directors
ESG contains many concepts and terms that can be confusing. To make it easier, we have compiled an ESG glossary where you will find brief explanations of the most important concepts.
If you have further questions about ESG, you can find answers in the FAQ. Otherwise, you are always welcome to contact us at kontakt@esg365.dk.
More customers, partners and financial stakeholders are demanding documented accountability. An ESG report is therefore no longer a ‘nice to have,’ but essential for maintaining trust, strengthening relationships, and remaining competitive.
An ESG report provides a clear picture of the company’s sustainability profile and the values you stand for. It documents how the company takes responsibility for the environment, people and good governance, as well as how you are working with the green transition.
Although it is not yet mandatory for everyone, it is advantageous to get started now. Companies that have an ESG report and communicate it openly are stronger in the market, in relation to customers and in terms of attracting and retaining employees.
Read more about why it is a good idea to prepare an ESG report here.
1
VSME is the EU Commission’s reporting standard for small and medium-sized enterprises. It consists of a basic module and an extended module and is voluntary to use.
2
Use the UN Sustainable Development Goals as inspiration to develop your company’s own sustainability initiatives.
3
Include the principles of the UN Global Compact, as well as relevant labeling schemes and certifications, in your ESG report.
“ESG reporting will become crucial in 2026, driven by new customer preferences and growing demands from stakeholders. Standardised reporting makes it possible to meet these expectations in a structured and efficient manner.”
Per Ørum,
CEO and founder of ESG36
We recommend that you collect E-data using tools provided or endorsed by your national authority. These tools are typically aligned with the Greenhouse Gas (GHG) Protocol – the international standard for measuring and reporting corporate carbon emissions (Scope 1, 2 and 3).
Once your company’s data has been calculated, you can easily transfer the results to ESG365 to continue working on your ESG report.
You can find an overview of the tools recommended by different national authorities in the EFRAG guidance attached below.
