BUILDING PUBLIC TRUST AWARD

A panel of experts comprising representatives from business, academia, investors, supervisory boards, and a rating agency analyzed the external reporting of companies listed on the DAX 40 and MDAX indices and selected unlisted companies. The subject of the analysis in 2023 was the sustainability reporting of companies. For the first time, the focus was on CSRD reporting with an emphasis on climate and EU taxonomy disclosures.

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The experts from academia and industry evaluated in particular the credibility, consistency, completeness, and materiality of the information presented. They also analyzed the quality of the integration of information, the reliability of the information, and the use of innovative reporting approaches. In addition, the text analysis methodology was again applied this year with regard to the use of relevant terms in the sub-areas of climate, supply chain, and EU taxonomy.

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The award for the best sustainability reporting in the DAX 40 goes to Deutsche Telekom AG. The jury described the group's report as characterized by a detailed presentation of climate targets and a transparent presentation of data security and political lobbying. In the MDAX segment, Lanxess AG impressed the jury with its clear and concise presentation of its goals in various sustainability areas, combined with the necessary level of detail on resource consumption and employees. For the second time, non-listed companies were also evaluated, with Robert Bosch GmbH once again taking first place. The company again provides comprehensive reporting based on its overarching goals, which are supported by concrete examples as well as qualitative and quantitative information. In particular, data quality and the circular economy were examined in depth. Mahle GmbH was recognized as this year's rising star. Mahle GmbH reports very well on its climate targets, its own workforce, and the quality of its supply chain. Nordex SE was recognized for the best taxonomy reporting. This is done transparently, with an explanation of the process, background information on the KPIs, and a clear overall presentation.

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The awards ceremony 2023

Since 2016, the Building Public Trust Award has been presented to companies for credible and consistent sustainability reporting. This year, the award was presented at the Sustainability Congress in Berlin.

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This year, the revised Corporate Sustainability Reporting Directive (CSRD)[1] and the EU taxonomy for companies published in 2022 will be examined in particular. These standards represent a significant step toward more sustainable corporate governance. The CSRD brings with it a number of changes and additions that will encourage companies to be more transparent about their sustainability processes. Among other things, the CSRD announces significant expansions of reporting requirements with regard to social (e.g., workforce diversity, human rights), environmental (e.g., climate protection, water use, biodiversity), and governance-oriented aspects (e.g., compensation structures, anti-corruption), as well as the obligation to have reports audited externally.

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At the same time, the EU taxonomy defines clear criteria and standards for environmentally friendly economic activities. For these taxonomy-eligible/compliant economic activities, companies are required to report their share of green revenue, capital expenditure (CapEx), and operating expenditure (OpEx). This classification enables companies to determine what proportion of their above-mentioned key figures is attributable to sustainable activities. The EU taxonomy is thus intended to create a framework for companies, policymakers, and stock market players to better align their activities with climate protection goals and, in the future, other dimensions of sustainability. The CSRD and the EU taxonomy are closely linked in order to actively contribute to tackling climate change and other social and environmental challenges.

 

Further links:

• The winners 2023

• The jury

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1] Regulation 2022/2464 of the European Parliament and of the Council (http://data.europa.eu/eli/dir/2022/2464/oj)
[2] Within the framework of taxonomy reporting requirements, an activity is considered taxonomy-eligible if it can be assigned to an environmental objective (in April 2023, the EU published the technical assessment criteria for environmental objectives 3-6), regardless of whether this objective is actually met. An activity is taxonomy-compliant if it can be assigned to an objective and meets the criteria.