I am an advocate of sustainability tailored to business – the kind that makes it easier to manage a company, increase sales or improve supplier selection. I believe that demanding more from a business than meeting legal and tax obligations is not always necessary. Having experienced several large CSR projects, prepared for companies such as Citi Handlowy, the Kronenberg Foundation or the Italian bank Unicredit, I have noticed that the impact of CSR on company strategy is limited – and virtually non-existent in the SME sector.
For this reason, I was optimistic to hear about the introduction of the Corporate Sustainability Reporting Directive (CSRD), which is expected to also cover SMEs from 2026. I see it as an opportunity to raise the standards of doing sustainable business. This is why I have been following with bated breath what is happening in the field of ESG and CSRD for more than two years, trying to understand the direction of change and to adapt Atland Consulting’s offering to the specific needs of the market.
I have participated in events such as the Global Impact Summit in Malaga. Together with the Lewiatan Confederation and colleagues from Attention Marketing, we organised a workshop on ESG tailored to the business to understand the concerns and doubts of Polish entrepreneurs. We prepared a similar event in Gdansk with Employers of Pomerania and Tom Smorgowicz. To further enrich my understanding of this complex topic, I undertook studies at Imperial College London on ESG and impact evaluation ( definitely not the most adequate translation from the English word Impact). I also conducted a number of interviews with representatives of the European Commission, seeking answers to the question of how ESG will affect companies, the market, public funding and economic models.
My conclusions
I fear that ESG and CSRD may become another tool for auditors and an extension of CSR. Instead of being a driver for sustainable business conduct, it could be another reporting requirement with no real impact on companies’ strategy. The rapid pace of implementation of the green transformation in Europe, imposed by von der Leyen, may be counterproductive, especially when companies have to compete in a global and volatile environment.
Two approaches to ESG in business
Currently, I see two ways to implement ESG in a company:
- CSRD compliance – implementing a reporting system that for large companies includes up to 1,100 indicators.
- Strategic ESG management – using ESG as a tool to increase revenue, build customer loyalty or supplier collaboration efficiency. At Atland, we have chosen this path.
We find that most of our clients are not very good at analysing ESG data, and in the flurry of indicators, reporting systems and changing regulatory frameworks, it is difficult for them to look at their business from a broader perspective and identify what specific actions are having the greatest positive impact and how to demonstrate that impact.
Practical tools – SROI and Triple Bottom Line Canvas
In tackling this challenge, I tested a number of methodologies and tools available on the market to make ESG implementation easier. Of these, I have selected two that we use and that I find particularly effective: the SROI (Social Return on Investment) algorithm and the Triple Bottom Line Canvas (TBL). Their purpose is simple – to increase revenue, customer loyalty or operational efficiency by implementing ESG into the company’s business model.
To illustrate the use of these tools in a simple way, let me give the example of our client from Germany – Wunderflats. To begin with, we looked at the company’s business model and results and analysed them in terms of ESG by asking ourselves which area we cared most about. To do this, we used TBL, which clearly helps to conduct a similar analysis. We decided to focus on ‘S’-‘Social’ because the company runs a digital platform with housing for refugees. Thanks to them, 30,000 refugees from Ukraine have found a roof over their heads outside state facilities and camps. In order to effectively show the impact of Wunderflats, instead of breaking down into multiple topics like the number of refugees, their quality of life, mental health, access to children’s education, etc., we decided to only take a look at the public administration and its priorities, namely price and cost-effectiveness. With the help of the SROI method, we calculated that the solution offered by Wunderflats is 8 times cheaper than the traditional governmental means of finding housing for refugees, generating savings of nearly EUR 80 million for the German treasury. This positive impact analysis directly contributed to the company’s increased turnover in the B2G segment.
Summary
A sustainable ESG-based business strategy should directly support the business model. A moral approach or legislative requirements are unfortunately usually not enough. Our focus should not only be on better reporting or additional audits, but on real change that will strengthen our operations and at the same time contribute to business sustainability. To achieve this, we need to know the strengths and weaknesses of our business and the needs of our stakeholders and, on this basis, select the ESG areas that best fit into the picture.
