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OCTOBER 2025 I PCB007 MAGAZINE 39 ing sector account for scope 3 category 1 emissions. It is intended for companies across all tiers of the value chain and aims to foster consistency and align- ment in category 1 emissions reporting. By address- ing both general and industry-specific requirements, it serves as a practical tool to enable meaningful decarbonization through improved data quality and stronger engagement across the value chain. Common databases, standardized metrics, com- parable data sets, and a common language must exist to facilitate objective interpretations and clear comparisons between various reports. Making ESG Make Business Sense Beyond compliance and reputation, the true test of ESG lies in its integration into core business strat- egy, yet many organizations struggle to connect ESG initiatives with financial performance, opera- tional efficiency, or innovation. This disconnect can lead to ESG fatigue, where efforts are seen as cost centers rather than value drivers. To overcome this, companies must shift from a reporting mindset to a strategic one. This means: 1. Embedding ESG into decision-making: ESG factors should inform capital allocation, supply chain management, and product develop- ment, not just sustainability reports. 2. Quantifying impact: Use data analytics to measure how ESG actions affect risk, revenue, and resilience. 3. Engaging stakeholders: Collaborate with investors, employees, and communities to align ESG goals with shared value creation. The Path Forward The future of ESG lies in harmonization, digitiza- tion, and integration. Emerging technologies like AI and blockchain can enhance data quality and trace- ability. Unified standards will improve comparabil- ity. Most importantly, a focus on materiality—what truly matters to the business and its stakeholders— will ensure that ESG is not just a reporting exercise, but a lever for sustainable growth. This will require an open and rigorous analysis of relevant material- ity topics, which is sometimes subjective. In recently published non-financial statements, there is a wide range of data points, the result of a list of materiality topics. If a company defines a long list of materi- ality topics, it must also report more data points, so there will always be a discrepancy with reports based on ESRS requirements. A review of the first 100 published CSRD reports performed by PricewaterhouseCoopers (PwC) 1 reveals that many companies are still navigating the complexities of the new reporting framework. Report lengths range from 30 to over 300 pages. While some companies disclose fewer than 15 sus- tainability-related impacts, risks, and opportunities (IROs), others report more than 80, highlighting the diverse approaches to materiality and disclosure. The EU Omnibus Package is a legislative initia- tive introduced by the European Commission in February 2025 to simplify and streamline sustain- ability-related regulations, including the CSRD and the ESRS. It aims to reduce mandatory data points by prioritizing quantitative over narrative disclo- sures as well as simplifying the double materiality assessment. The overall result will minimize com- plexity and provide greater clarity. The Stop-the- Clock Directive (EU 2025/794) has postponed this process for two years, ensuring at least one more difficult reporting season. As we navigate this complex terrain, the ques- tion is no longer whether to report on ESG but how to report in a way that is credible, comparable, and commercially meaningful. PCB007 References 1. "Insights from the first 100 CSRD reports," PwC.com, March 24, 2025. Marina Hornasek-Metzl is VP Corporate ESG and Quality at AT&S AG. " " The future of ESG lies in harmonization, digitization, and integration. Marina Hornasek- Met zl