ESG (Environmental, Social and Governance) issues are becoming increasingly important for Swiss companies, in response to the expectations of investors, regulators and consumers.
A recent study by the Zurich University of Applied Sciences (ZHAW ) reveals that many companies are still struggling to adopt effective ESG reporting.
This poses a major challenge, particularly in French-speaking Switzerland, where preparation is particularly lacking.
The report highlights the technical and human obstacles to implementing robust and reliable ESG reporting.
Let’s find out together.
ESG reporting in Switzerland
The ZHAW study reveals that almost 40% of Swiss companies do not intend to publish an ESG report in 2024.
This reluctance is particularly marked in French-speaking Switzerland, where preparation for ESG reporting is less advanced than in other regions.
Companies embarking on this approach face significant challenges, not least the lack of qualified personnel and the technical difficulties involved in collecting and analyzing ESG data.
These obstacles limit their ability to meet the growing demands of stakeholders.
The main challenges
Swiss companies face several major challenges in implementing effective ESG reporting:
- The lack of qualified personnel is a major obstacle.
The skills needed to collect, analyze and interpret ESG data are not sufficiently present within the teams.
Technical shortcomings are another significant obstacle. - Collecting ESG data requires robust information systems and seamless integration between different departments, which is often lacking in Swiss companies.
These limitations compromise the reliability and relevance of the ESG reports produced.
Use of ESG data
The ZHAW study shows that ESG data is still little used for strategic decision-making.
Companies exploit this information primarily for marketing purposes or new product development, rather than to guide their overall strategies.
This limited use reduces the potential impact of ESG initiatives on companies’ environmental and social performance.
Integrating ESG data into strategic decision-making processes could strengthen the sustainability and resilience of Swiss companies, but requires greater willingness and resources.
Sharing ESG data in the supply chain
Sharing ESG data within the supply chain is crucial for a comprehensive assessment of environmental and social impacts.
However, companies are finding it difficult to manage the indirect emissions (Scope 3) resulting from their suppliers’ activities.
This lack of transparency complicates the implementation of effective measures to reduce the overall carbon footprint.
Greater collaboration with supply chain partners and the adoption of common reporting standards could improve the situation, enabling better management of ESG impacts throughout the value chain.
What we learned from this study of ESG reporting in Switzerland
ESG reporting represents a major challenge for Swiss companies, with technical and human obstacles to overcome.
The adoption of effective ESG practices is crucial to meeting stakeholder expectations and strengthening corporate sustainability.
To make progress, it is essential to develop internal skills and improve information systems.
Integrating ESG data into strategic decisions and sharing this information within the supply chain are necessary steps to maximize the impact of ESG initiatives.
Swiss companies must mobilize to meet these challenges and position themselves as leaders in sustainability.
At Infologo, it’s a process that began at the end of 2023 and continues through various actions.
Don’t hesitate to follow our news on this subject.
Sources: ESG reporting remains a challenge for Swiss companies – ICTjournal
