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ESG has far-reaching obligations for companies from the end of 2024, consequences for non-compliance and opportunities for companies. Concepts such as environmental sustainability, carbon footprint, humanitarian, ethical as well as responsible investment are slipping further into focus. This requires an ESG integration strategy along the ESG legal framework for compliance and documentation. As a general rule, companies with more than 1,000 employees must comply with a number of obligations. In addition, the EU plans to create a comparable, cross-national ESG legal framework within the next four to five years. But in other countries, the number of employees is sometimes lower or depends on turnover. In the United Kindgom, for example, the benchmark is 250 employees or more or a turnover of 36 million British pounds. Based on the insights and parameters gained so far, we are developing the ESG management module and is also to be understood as a Know your Supplier (KYS) module within the framework of the LkGS. The Pythagoras ESG Management solution streamlines initial and annual risk assessments through full automation. Due diligence becomes much easier as a result. The module’s dashboard is customised to the requirements of the LkSG and provides an efficient method for assessing suppliers and ranking them by risk. The automated abstract risk assessment adheres to all recommended calculation principles and thus ensures comprehensive compliance. ESG parameters are displayed as a score system and quickly orientate you on whether your supply chain is positioned within the legal requirements.
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