ESG
Many believe that ESG is only relevant for larger companies. In reality, working with ESG and reporting can benefit any company. Large corporations, public organisations, and SMEs alike. ESG is more than compliance – it is an investment in future value. By working systematically with ESG, you can create measurable business value, strengthen relationships with customers and partners, and stand stronger when facing new regulatory and market expectations.
The concept of ESG (Environmental, Social, and Governance) integrates sustainability principles in the environmental, social and corporate governance levels. We view ESG as a strategic approach to sustainability across the entire organisation. Incorporating ESG into your organisation’s work and reporting can strengthen your ability to navigate complex challenges in a sustainability-focused business environment.
How can Transition assist you?
Transition has extensive experience in addressing ESG-related tasks. We work with a five-step model for implementation of ESG. This model ensures a strategic approach to ESG and aims to break the work down into a meaningful and chronological sequence. We can assist you through all steps, but we are also available if you only need support with individual strategic points, analyses, or the process of getting started.
01 Scoping and choice of framework
We analyze your current situation against the new legal requirements from CSRD, ESRS, the EU Taxonomy, and CSDD. We assess when and how your company will be affected by the legislation and provide recommendations on what needs to be improved. If you are not subject to these laws, we offer strategic opportunities to get ahead and create a competitive business advantage.
We have developed an ESG screening tool designed to provide an overall ESG assessment of your company.
The screening is based on a questionnaire that we have created based on the ESRS standard. To ensure that all three ESG areas are covered, the questionnaire is divided into environmental (E), social (S), and governance (G) sections.
The ESRS standard is very comprehensive, which is why we have narrowed the scope in the ESG screening tool to include only the disclosure requirements most relevant for providing an overall understanding of your ESG efforts.
Based on an analysis of your responses and scores, you will receive a comprehensive report with at least 10 recommendations for improvements. The report will be sent to you and reviewed during a meeting with one of our consultants.
The screening and report form the basis for the subsequent process, where we collaborate with you to identify and implement one or more focus areas. This could include climate accounting, energy screening, employee policies, identification of potential certifications, communication, or implementation of circular initiatives.
ESG and sustainability evolve rapidly, with new requirements, standards and expectations emerging continually. At Transition, we help you navigate this dynamic landscape by transforming developments into concrete, prioritized insights that can be put into practice.
We systematically monitor trends, regulation, technology and market developments in sustainability and assess what is relevant for your sector and situation. The information is not only communicated but translated into actionable guidance, enabling you to act proactively on regulatory changes, market expectations, and new solutions.
A key element of our process consists of 1-2 annual presentations to management or steering committees, where we summaries the most important developments and present concrete implementation plans. These plans outline how new knowledge can be embedded internally, which departments should be activated, and which actions can be initiated. We can also conduct shorter presentations for departments where the new knowledge has relevance – for example operations, development, purchasing or design teams. With Corporate Foresight, ESG becomes not just a leadership project but an embedded, shared responsibility. You gain clarity, structure, and the ability to make informed decisions.
02 Double Materiality Assessment
The materiality analysis is based on GRI’S (Global Reporting initiative) 31 topics with 83 underlying indicators and identifies their impact on the company.
The 83 indicators are categorized into a hierarchy, which can then be used to guide and assist you in data collection and provide an accurate account of your sustainability focus. As part of the materiality analysis, a stakeholder analysis is also conducted.
With the adoption of the CSRD and the accompanying ESRS standards, we are increasingly conducting double materiality analyses under ESRS rather than GRI.
Conducting a double materiality analysis is a crucial step in ESG reporting and compliance with the new legal requirements under CSRD and ESRS. This process involves a systematic assessment of both internal and external factors to identify the most significant ESG topics that require action and reporting.
At Transition, we structure this analysis into six phases, which includes:
- Understanding your company and its context, industry, and value chain
- Identifying issues and potential topics, possibly involving key stakeholders
- Selecting material topics based on an assessment of impact, risk, opportunities, and double materiality
- Ranking the most material topics using the materiality matrix
- Quality assurance of the quantification and prioritization of the material topics
- Reviewing the materiality matrix with a broad selection of internal and external stakeholders
The double materiality analysis can not only be used to comply with legislation but also serve as a strategic tool. The analysis identifies valuable opportunities as well as risks that the company can act upon.
03 Data collection and climate accounting
We can introduce you to the GHG Protocol, data collection templates, and best practices for sourcing data. We provide guidance along the way and help you qualify data as well as find more precise emission factors. Finally, we introduce you to the Danish Business Authority’s free tool, Klimakompasset. We review the data input and the results from the climate account.
We can provide an in-depth introduction to carbon accounting, including scopes 1, 2 and 3 of the GHG Protocol and the 15 scope 3 categories. You receive a structured data collection template developed by us, which supports the entire process. Through weekly online status meetings, we ensure steady processes, clarify data sources, assess data quality, and identify emissions factors. We are actively involved in both data collection and validation.
Data collection can be extensive, and many companies want to digitize the process. There are many providers offering different solutions, but which one is the right fit for your company? Based on a comprehensive mapping and screening of software solutions, we can provide recommendations tailored to your needs.
04 GAP analysis and strategic target setting
ESG reporting can serve as Gap analysis by identifying the material indicators and how the company performs on them. This provides an excellent opportunity to conduct a hotspot analysis, where, based on the established baseline, we can identify reduction options across the environmental scopes 1,2, and 3.
Do you already have a climate account and want to take the next step? Climate accounting gives you an overview of your current emissions. You can move forward by using the climate account to set ambitious targets for reducing emissions in line with the science-based targets initiative (SBTi).
We help you not only comply with global climate standards (SBTi) but also develop an action plan to reduce your climate impact in a scientifically based way. Our goal is not only to achieve SBTI compliance but also to ensure that your targets are ambitious, realistic, and positively contribute to both your business and the climate.
SBTi for SMEs
As an SME, you can choose the SME route, which is a faster and simpler path. We can also assist you in following this standard.
To take the SME route, the company must meet several criteria:
- The company’s emissions must be under 10.000 t CO2e for scope 1 location- based scope 2
- The company must not own or control maritime transport assets or electricity generations assets
- The company must not be classified as a financial institution or oil and gas company
- The parent company’s overall business must not qualify for the standard route.
Additionally, at least two of the following must apply to the company:
- Fewer than 250 employees
- Annual turnover under 40 million EUR
- Total assets under 20 million EUR
- Not part of Forest, Land, and Agriculture sector
SMEs that meet these criteria can choose between the SME route and SBTi’s standard route.
We offer advisory services to companies that want to work strategically with sustainability through certifications- whether it is a company certification such as B Corp, a prosses management system certification such as ISO 14001, or product and material certifications such as GOTS, FSC, the EU Ecolabel, or similar. We assist both in clarifying which certifications will create the most value for your organization, and in the practical process toward achieving the certification.
A typical certification process looks like this:
1. Baseline and Gap Analysis
We begin by assessing the company’s current level in relation to the requirements of the selected certification. This includes mapping existing policies, data, processes, and documentation – as well as identifying any gaps.
2. Identification of External Certification partner (If relevant)
If auditing or external validation is required, we help identify and select the right certification partner.
3. Completion of Questionaries and Documentation Work
We guide you through requirements, scoring, and the structure of documentation, and we quality-assure your responses and supporting materials.
4. Improvement Phase
Based on the baseline, we identify areas that should be strengthened to increase your score or secure certification. This may include:
- Development of new policies or governance structures
- Calculations and data foundations (e.g., climate, materials, supplier data)
- Process or practice changes
- Engagement of employees, customer’s or suppliers
5. Submission and Support until Approval
We ensure correct upload and submission within the relevant system. For certifications requiring an audit or evaluator (e.g., B Corp, ISO, Ecovadis), we remain available if additional questions arise.
6. Completion and Recommendations
The process concludes with a list of development and improvement initiatives that the company can continue working on – both in relation to recertification, ongoing maintenance, and strengthening of your ESG efforts.
05 ESG Reporting
We can manage the entire process and guide your company through all five stages of ESG work. This means we can assist you with everything from identifying disclosure requirements under ESRS and collecting data to analyzing and preparing the ESG report itself. With our full support, you will become compliant with the regulations under CSRD. If you only require minimal assistance with your reporting, this option is also available.
Additionally, we can help with reporting according to GRI’s 83 metrics if you prefer to use that standard instead.
We can provide advisory support with minimal assistance for ESG reporting, helping you with tasks such as data collection and guidance in preparing the report.
You will retain primary responsibility for data collection and the preparation of the report itself, while we provide consultation and advice. This means that the majority of the work will be carried out by your team. If you prefer full assistance, from identifying disclosure requirements under ESRS and collecting data to preparing the final report, those options are also available.
Additionally, we can support reporting according to GRI’s 83 metrics if you wish to use that standard instead.
Non-listed SMEs can use the voluntary standard (VSME) to report on ESG. The standard aligns closely with ESRS, ensuring consistency with the disclosure requirements and terminology used by companies subject to CSRD. The voluntary standard is thus a simplified version for SMEs not covered by the legal requirements but who wish to report on their sustainability efforts.
We offer assistance with reporting, either full support where we write the report or partial support, where we provide guidance and quality assurance.
For full assistance, we typically structure the process with the following workshops and follow-up meetings:
- Kickoff workshop introducing the standard and how it supports CSRD
- Workshop to select which topics you should report on. This workshop serves as a simplified version of a double materiality analysis
- 2-3 workshops to review the selected disclosure requirements and help you get started with data collection
- Assistance with data collection
- Gap analysis and identification of targets
- Preparation of the report itself
We can also assist with individual parts of the process if full support is not desired
Reasons to report voluntarily
The purpose of the voluntary standard is to support micro, small, and medium-sized enterprises in:
- Contributing to a more sustainable and inclusive economy
- Improving their management of sustainability challenges, such as environmental and social issues including pollution and workforce health and safety
- Providing information that helps meet the data demands of lenders, creditors, and investors
- Delivering data that assists large companies in satisfying their need for sustainability data from suppliers
From the outset, the EU taxonomy had been both a reporting requirement and a strategic management tool- but with the upcoming changes in the Omnibus package, it will increasingly become a tool that companies can actively use to assess and document how sustainable their activities truly are. In particular, in the construction and real estate sectors, we already see examples where actors use the EU taxonomy as a supplement or alternative to, for example, DGNB certification for individual projects.
In a taxonomy process, we work closely with your organization through working and advisory meetings. The process typically includes the following steps:
- Mapping of economic activities and areas that fall under the EU taxonomy.
- Assessment of the activities in relation to the technical screening criteria. “Do no significant harm” (DNSH), and the minimum social safeguards
- Collection, documentation, and completion of a reporting template that can be used in the ESG report
- Proposals for an improvement plan to better meet taxonomy alignment and ensure future integration
By choosing this approach, you will not only meet the reporting requirements but also establish a structured process to turn the taxonomy into a strategic tool – providing greater transparency, improved documentation, and an opportunity to differentiate yourselves in the market.
Sustainability legislation is becoming increasingly complex, and requirements such as the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR) place new demands on companies regarding documentation and traceability. At Transition, we help organizations understand which rules apply to their specific activities, how these requirements affect the business, and how they can be met effectively and credibly.
We translate complex legal requirements into practical solutions that ensure both compliance and documentation – from mapping data and processes to ongoing reporting and internal control mechanisms. The effort can be delivered as a standalone project, but we often recommend integrating it into an overall ESG strategy or reporting framework. This allows the organization to best utilize overlaps between data, processes, and documentation, while also creating a more coherent and value-generating approach to sustainability.
Many companies struggle to communicate their sustainability initiatives and efforts effectively and transparently. To fully benefit from your ESG work, you should communicate your efforts to the outside world – not only to create value for your company but also to inspire other stakeholders.
We can help you strengthen your ESG communication so that you can present your efforts in an accurate and engaging way. Our support includes advising you in your ESG reports and communication on your website or social media channels. Within communication, we offer:
- Knowledge enhancement regarding guidelines for green marketing
- Guidance on how to communicate your sustainability initiatives in alignment with your company’s DNA and applicate regulations
- Development of texts and other communication materials
- Workshops focused on developing or rethinking your brand in relation to sustainability
Ongoing ESG Support
We have extensive knowledge of the ESG field and can assist you with everything from the initial startup phase to reporting, as well as implementing initiative measures.
Often, a lack of internal knowledge or competencies can be a bottleneck for companies. We offer to be a dedicated external partner who can support the employee(s) responsible for ESG within your company with ongoing advice and sparring. This helps ensure a high level of ESG expertise while also building internal competencies and knowledge within your organization.
Assistance with specific disclosure requirements
We can help you report on and improve your efforts and initiatives within specific disclosure requirements, including circular economy, biodiversity, and workers in the value chain.
Examples of what we can assist with include:
- Development of policies (e.g., Code of conduct, Climate and Environmental Policy)
- Preparation of a climate action plan
- Assessment of potential for implementing biodiversity-enchaining initiatives
- Development of a sustainability strategy
- Mapping risks of pollution from company activities
- Initiating workplace assessment (APV)
Selected cases
Do you have questions regarding our ESG services?
Contact
Mathias Selchau Majlund
Head of ESG
- mathias@transition.nu
- +45 3026 1334
