ESG data is indispensable – even without legal requirements. Companies benefit from higher revenues, lower risks, and improved relationships with investors and customers. As ESG reporting becomes a global standard, its strategic value is recognized far beyond compliance.
Why are ESG data important?
CSRD Overview:
The Corporate Sustainability Reporting Directive (CSRD) will require more companies to report on ESG starting in 2025. Even companies not directly affected should leverage ESG data to meet investor requirements. See our complete overview of ESRS standards for more details.
Conclusion: ESG data is more than compliance – it creates transparency, trust, and long-term value. Companies that act early secure decisive advantages, positioning themselves as leaders in an increasingly sustainability-driven marketplace.
ESG data plays a crucial role in increasing a company’s long-term value – far beyond mere legal requirements. Companies that focus on long-term strategies achieve, on average, 47% higher revenues and 36% profit growth compared to their competitors. According to McKinsey, organizations with strong ESG propositions see reduced costs, improved employee productivity, and enhanced top-line growth.
Consumers are willing to pay up to 27.6% more for sustainable products (Nielsen). At the same time, 80% of investors consider factors such as sustainability practices, carbon footprint, and emissions reduction commitments in their decisions. Companies that put sustainability at the center outperform their competitors in metrics like gross profit, EBITDA, EBIT, and net income. They also reduce energy costs, minimize waste, and improve operations. These economic benefits not only strengthen the balance sheet but also boost stakeholder trust. Learn more about life cycle assessment and its role in sustainability.
The use of ESG data creates transparency and strengthens trust between companies and their stakeholders. 96% of the world’s leading companies (G250) publish reports on their sustainability performance, while 85% already rely on ESG transparency despite regulatory uncertainties (KPMG Survey of Sustainability Reporting 2022).
This openness pays off: consumers increasingly prefer brands that clearly commit to ESG goals. A strong ESG strategy also helps attract and retain highly qualified professionals – a key factor for motivation and productivity. According to Harvard Business Review, companies with transparent ESG communication are more likely to attract top talent and foster loyalty. Companies use ESG data to clearly communicate their sustainability efforts and strengthen relationships with investors, customers, and society. Transparent communication makes it easier to future-proof business models. For guidance on ESG communication, see our ultimate guide to ESG questionnaires.
ESG data helps companies prepare for new regulations such as the CSRD, the EU Taxonomy Regulation, or the Supply Chain Due Diligence Act. A proactive approach reduces risks in legal, regulatory, reputational, and compliance areas. Read more about the EU Taxonomy Omnibus Package 2025 and its impact on sustainability reporting.
The numbers speak for themselves: 77% of global investors are interested in sustainable investment opportunities, and 46% of consumers prefer sustainable products (Key ESG). Companies that address ESG topics strategically secure competitive advantages and open up new opportunities.
"When regulations force you to consider something you previously ignored, you can gain new insights and inspiration."
Massimo Terrevazzi, Group CFO & Executive Director at Perfetti Van Melle Group
71% of C-level executives now see ESG investments as a source of competitive advantage (EY).
"To truly integrate sustainability into your company, it must be embedded throughout. We have an integrated strategy that includes both financial and concrete ESG KPIs..."
Léon Wijnands, Head of Sustainability at ING Netherlands
With a well-thought-out ESG strategy, companies can not only respond to changing market and regulatory requirements but also create long-term value – for their shareholders, society, and the environment.
ESG data not only plays a key role in securing long-term company value but also helps minimize risks and unlock new market opportunities. According to MSCI, companies with robust ESG practices experience fewer severe incidents, such as environmental fines or supply chain disruptions.
With ESG data, companies can identify potential risks more quickly and address them directly. For example: between 2000 and 2021, extreme weather events in Germany caused estimated damages of €145 billion (BMU).
The Supply Chain Due Diligence Act (LkSG), in force since January 2023, shows how regulatory requirements can lead to significant financial consequences. It obliges companies with more than 3,000 employees to monitor human rights and environmental protection throughout their entire supply chain. Violations can result in fines of up to €800,000 or 2% of global annual revenue, as well as exclusion from public contracts for up to three years. Learn more about CSDDD key changes and compliance.
Good ESG data management helps identify risks early. Many companies now work more closely with their supply chains to manage these risks – increasingly including indirect suppliers. These proactive measures lay the foundation for being prepared for upcoming market changes.
ESG data enables companies to anticipate market trends and regulatory developments early on. According to a survey, 75% of executives consider ESG criteria important or very important for their business strategy (PwC CEO Survey). This attitude is mirrored by investors: 89% consider ESG factors in their decisions, and 85% of asset managers rank ESG aspects as a top priority (Morgan Stanley).
Consumers are also placing more value on sustainability. An EU study shows that 73% of consumers factor in a product’s environmental impact when making purchasing decisions (European Commission). At the same time, more than half of CEOs expect sustainability initiatives to generate significant profits within the next three to five years (Accenture CEO Study).
New technologies are improving the analysis and use of ESG data, giving companies a clear competitive edge. Discover innovations in ESG climate risk management technology.
When companies understand the risks and opportunities highlighted by ESG data, they can turn them into strategic advantages. For example, companies with strong ESG performance achieve average annual returns of 12.9% (Key ESG).
Amazon is a prime example of ESG initiative success. In 2020, the company launched the Climate Pledge, aiming for carbon neutrality by 2040. Products with the "Climate Pledge Friendly" badge saw an average weekly sales increase of 8.4% (Amazon).
Patagonia also demonstrates how long-term sustainability strategies pay off. For nearly 40 years, the company has donated 1% of its sales to environmental organizations, resulting in a customer loyalty rate of 82% – one of the highest in the apparel industry (Forbes).
"Sustainability is becoming a key strategy for future-proofing companies. Those who act today can secure a decisive competitive advantage and are well prepared for future developments."
Gunther Dütsch, Partner, Sustainability Services & Climate Change, PwC Germany
Already, 76% of companies view sustainability as a means to achieve business benefits (Deloitte). Targeted ESG data sharing with suppliers can also help build stronger, more trustworthy value chains.
"If investors don’t see this commitment, they won’t hesitate to take action, which can mean divesting from a company and investing their clients’ money elsewhere."
James Chalmers, Director of Methodology & Innovation, PwC UK
ESG data has established itself as a valuable tool in the business world. It not only provides insights into environmental and social issues but also opens up new ways to make decisions and seize opportunities. Below are some concrete examples of how companies use ESG data in their strategies.
With ESG data, companies can analyze market trends and customer preferences for eco-friendly products and develop new business models accordingly. For example, by examining climate risks along the supply chain, companies can identify solutions such as geographic diversification or regional buffer stocks.
A real-world example: In 2025, a logistics company used satellite data on heavy rainfall events, combined with real-time traffic and inventory information, to identify flood risks along its transport routes. When a flood threat arose, deliveries were automatically rerouted, and additional storage in higher-elevation depots was reserved. The result? Delivery failures were reduced by 20%. Learn more about satellite AI for supply chain transparency.
Investment decisions also benefit from ESG data. In 2025, a utility company used scenario analyses to determine that a CO₂ price of €75/ton would significantly impact the profitability of a planned gas power plant. Instead, the company opted for hybrid energy projects such as solar and battery storage solutions, reducing emissions by 30% while securing long-term returns. See our blog on solar energy and battery storage investments 2025.
ESG data helps companies use resources more efficiently and cut costs. Monitoring water, energy, and raw material consumption makes it possible to identify savings potential while reducing environmental impact.
For example: Capgemini used machine learning in 2024 to manage ESG data from more than 30 sources. This increased operational efficiency by 50% by eliminating manual checks and improving report accuracy for CFOs and sustainability departments (Capgemini).
ESG data can also play a key role in the supply chain. In 2025, an automotive supplier conducted annual assessments of its 200 most important suppliers and found that 28% needed improvement in environmental management. Targeted training and the use of alternative materials led to a 12% reduction in CO₂ emissions.
In the area of employee safety, ESG data also made an impact: a machinery manufacturer analyzed accident rates and turnover figures, then introduced ergonomic training and mentoring programs. Within six months, accident rates fell by 15% and turnover by 10%.
"To truly integrate sustainability into your company, it must be embedded throughout. We have an integrated strategy that includes both financial and concrete ESG KPIs..."
Léon Wijnands, Head of Sustainability, ING Netherlands
In addition to boosting efficiency, transparent use of ESG data helps strengthen stakeholder trust.
Disclosing ESG data builds trust and strengthens relationships with investors, customers, and regulators. Verifiable data on a company’s environmental and social impacts are increasingly in demand. According to a survey, 83% of investors include sustainability information in their analyses (Key ESG).
Consumers also value sustainability: 88% of customers prefer companies that take social or environmental responsibility, while 76% would stop buying from companies that neglect these aspects (The Guardian).
A prime example is Unilever: By transparently reporting on environmental impacts, the company strengthened investor trust and increased customer loyalty (Unilever). This openness helps prevent misalignment between corporate goals and stakeholder expectations.
For investors, the quality of ESG reporting is becoming increasingly important. 85% demand that ESG metrics be audited at the same level as financial reports. At the same time, 94% suspect that many reports contain at least some unsubstantiated sustainability claims (PwC Investor Survey). For more on ESG audits, see our third-party ESG audits guide.
"In transforming our economic systems and responsible corporate action, ESG data offers the opportunity to act precisely. This turns corporate responsibility into measurable and impactful actions."
Laurent Hernández, Partner, IT-Strategy & Sustainability, TRUSTEQ
These examples show how ESG data can help companies successfully align for a sustainable future while securing competitive advantages.
Successful ESG data integration requires the right tools and clearly defined processes. The global market for ESG reporting software was valued at around $0.7 billion in 2022 and is expected to grow to about $1.5 billion by 2028 (MarketsandMarkets). Within this growth, the software segment in the ESG sector is projected to reach $571.74 million.
To realize the benefits of ESG data integration, companies are increasingly turning to modern digital solutions. Such ESG software systems significantly reduce manual effort in data collection and preparation. They create a central data source, foster internal communication, and provide stakeholders with access to decision-relevant information.
When selecting suitable ESG software, companies should consider the following aspects:
Additionally, technologies such as artificial intelligence (AI) and machine learning enable more precise ESG analyses, while blockchain technology increases data tamper-resistance. IoT devices and smart sensors also enable real-time monitoring of ESG metrics. Learn more about AI and APIs for sustainable climate solutions.
The costs for ESG software vary widely: while there are free basic solutions, mid-range options are around €199 per month, and comprehensive platforms can cost up to €20,000 per year.
Some leading providers in this area include:
Fiegenbaum Solutions specializes in the seamless integration of ESG data into corporate strategies. Led by Johannes Fiegenbaum, the company offers customized consulting services, including the development of ESG strategies, Lifecycle Assessments (LCA), and support for CSRD compliance.
The services include:
Additionally, Fiegenbaum Solutions integrates modern marketing technologies such as conversion APIs and Marketing Mix Modeling to enhance ESG communication and reporting. This combination of technology and consulting gives companies a clear advantage in their sustainable transformation. See our introduction to Marketing Mix Modeling and ESG APIs for data management.
Data quality is a key success factor in ESG integration. According to studies, 94% of investors suspect that company reports contain at least some unsubstantiated sustainability claims. At the same time, 85% of investors demand that ESG data be audited with the same care as financial reports (PwC Investor Survey).
A solid ESG data strategy should include the following elements:
Cross-functional collaboration is also crucial to ensure unified data collection and integration.
| Role | Responsibility | Focus |
|---|---|---|
| Data Admin | Supervising the governance program | Business & Tech |
| Data Steward | Interface between business and IT | Business |
| Data Custodian | Data access, storage, and security | Tech |
| Data User | Using data for decision-making | Business |
Companies should ensure that externally reported information is independently verified before publication. Data gaps must also be identified and closed, and repeatable processes and internal controls established.
Regular quality assessments of relevant data are essential. They help evaluate the accuracy and reliability of the data as well as the effectiveness of reporting. Without complete and accurate ESG data, even the best software systems cannot fully meet regulatory requirements or internal management goals.
ESG data is more than just a means of regulatory compliance – it offers companies the opportunity to create long-term value and stay competitive.
ESG data is now an indispensable tool for companies. The numbers speak for themselves: 83% of consumers expect companies to actively pursue sustainable practices. 79% of investors consider ESG risks crucial for their investment decisions. And 90% of S&P 500 companies already publish ESG reports (Key ESG).
For internationally active German companies, ESG data transparency is becoming increasingly important. Banks and investors are increasingly demanding access to this data to grant attractive financing terms. At the same time, violations of disclosure obligations abroad can result not only in legal and financial consequences but also in reputational damage.
A well-thought-out ESG strategy not only builds trust but also integrates sustainable practices into business processes. Companies with strong ESG performance attract investors, open up new markets, and create partnerships that secure long-term competitive advantages.
Moreover, ESG data offers significant savings potential. By monitoring resource consumption, companies can reduce costs while minimizing their environmental impact. Analyzing waste and material flows opens up opportunities for circular economy models that reduce disposal costs and create new revenue streams (Ellen MacArthur Foundation).
These advantages make it clear: companies should see ESG data not just as an obligation but as a strategic opportunity.
To seize these opportunities, targeted action is required. By 2025, ESG-related assets could account for around half of all professionally managed investments – a market volume of approximately $35 trillion (Bloomberg). German companies that act early can secure decisive advantages.
Key steps include:
Companies like Fiegenbaum Solutions offer comprehensive support in implementing these measures. From developing an ESG strategy to lifecycle assessments and CSRD compliance – the expertise is there to ensure successful integration. Visit our sustainability consulting page for more information.
The future belongs to companies that use ESG data as a strategic tool. With 88% of consumers preferring sustainable companies, one thing is clear: sustainability is not just a trend, but an expectation.
The market for digital ESG solutions is also growing rapidly. By 2030, it is expected to reach €57 million, with annual growth of 21% (Statista). This shows how important digital solutions will become for companies in Germany – regardless of their size.
ESG data plays a central role for companies – even for those not directly affected by the CSRD. Why? Because it helps reduce long-term risks, improve operational efficiency, and identify new business opportunities. Companies that actively integrate ESG data into their processes can also gain an edge over the competition and strengthen stakeholder trust. According to BBC, companies embracing ESG principles are better prepared for future regulatory shifts and market expectations.
Another advantage: ESG data makes it easier to prepare for future regulatory requirements. At the same time, it lays the foundation for embedding sustainable approaches into corporate strategy. The result? More stability and adaptability in an ever-changing market.
ESG data gives companies the ability to identify and manage risks early. By analyzing environmental, social, and governance factors, potential challenges – whether regulatory requirements, financial uncertainties, or reputational risks – can be assessed more accurately and proactively avoided. MSCI research shows that companies with high ESG ratings experience fewer costly incidents and are more resilient to shocks.
But it’s not just about risk management. ESG data also opens up exciting opportunities for growth and innovation. Companies that use their ESG strategies wisely can secure competitive advantages, develop sustainable products and services, and meet the rising expectations of customers, investors, and other stakeholders. The result? A stronger market position and long-term value creation in an increasingly sustainability-oriented economy.
Digital solutions specifically developed for ESG data integration can provide tremendous support to companies. The most important technologies include cloud-based platforms, AI-powered analytics tools, and automated data management systems. These tools centralize ESG data and turn it into actionable insights. This makes it easier to efficiently collect, analyze, and prepare data for reporting. According to MarketsandMarkets, the ESG software market is set for rapid growth as companies seek scalable, automated solutions.
Especially helpful are methods such as automated data aggregation and advanced analytics, which directly feed ESG data into strategic decisions. With these technologies, companies can not only better assess potential risks but also identify new market opportunities and pursue their sustainability goals more effectively.