There is currently a shift in ESG - from a focus on compliance to long-term business value. Successful ESG work helps manage risk, attract capital and create long-term business value through increased transparency. This is the message from Stratsys sustainability expert Cecilia Almér. She points out five ESG trends that affect your management decisions.
A lot is happening in the field of sustainability, not least regulatory changes proposed by the EU that shift the focus from compliance to a forward-looking perspective. Today, it is clear that ESG is a key driver of growth and profitability.
It is increasingly important for management teams and boards to understand the impact of sustainability on business strategy, the opportunities it presents and the trends that will shape decision-making going forward.
Despite major challenges linked to the policy shift at EU level, ESG continues to be a central part of corporate strategies and investment decisions. Stratsys' sustainability expert Cecilia Almér identifies five trends that are influencing strategic decisions at the executive level.
Cecilia Almér, ESG Lead at Stratsys
1. New Regulations Require better ESG Governance
- While CSRD is on hold for many companies, new regulations are coming that require governance. "Several regulations have already come into force and will start to be complied with in 2026. So the preparation work needs to be done now," says Cecilia. "These include the CBAM climate tariff and the EUDR deforestation directive. This means new requirements for companies linked to issues such as better traceability, data-driven reporting and clear risk assessments.
What does this mean for Management?
- ESG needs to move from a reporting issue to part of the business strategy.
- The board and management need to be more involved in sustainability decisions.
- Investments need to be made in systems and processes that support the work.
2. Capital and Investments are still Driven by ESG
- ESG expectations are still influencing capital and investments, but not as unilaterally as before. Instead, there is a maturing phase where the EU expects investors and companies to comply with ESG standards. According to Cecilia, funds with an ESG focus will have an increased focus on measurability and financial ESG factors.
What does this mean for Management?
- ESG efforts affect creditworthiness and access to capital.
- The board needs to be able to demonstrate how ESG efforts create profitability and reduce risk.
- Data-driven ESG insights will be crucial in reporting to investors.
3. AI and Data Analytics are Revolutionizing ESG
- Companies are increasingly integrating AI and automated data analytics to monitor targets, mitigate risks and inform decisions. This provides increased opportunities for both compliance and reliability in ESG reporting, Cecilia explains.
What does it mean for Management?
- ESG data needs to be easily accessible, accurate and comparable.
- AI can automate analysis and reporting, saving time and reducing errors.
- Companies with advanced ESG analysis gain a strategic advantage.
4. ESG Impacts Brand and Company Culture
- A company's sustainability performance is a key factor in attracting both customers and talent. However, we see a trend towards increased caution and deliberate restraint in reporting - what is known as greenhushing. This can be countered with reliable ESG data that gives companies the courage to communicate and stand up for their successes in ESG work," Cecilia emphasizes.
What does this mean for Management?
- ESG must permeate the entire organization and not just the sustainability team.
- Governance and follow-up of sustainability goals becomes a key management issue.
- Communication around ESG performance needs to be transparent and fact-based.
5. Sustainability Data Becomes a new Currency
- Investors, customers and regulators are demanding more transparency and comparability in ESG reporting. Meeting these demands gives you a competitive advantage and easier access to capital, Cecilia explains.
What does this mean for Management?
- ESG data must be reliable, traceable and fit for scrutiny.
- Digitization and system support will be crucial to manage large amounts of data.
- Companies that can demonstrate measurable ESG results will have a stronger position in the market.
ESG as a Strategic Asset
For Cecilia at Stratsys, there is no doubt that ESG can become a clear competitive advantage. She highlights three factors that are particularly important for success:
- Data-driven follow-up: Manage ESG efforts with the right systems and insights.
- Integrated strategy: Connect ESG to business and growth objectives.
- Automated reporting: Manage ESG data efficiently to reduce the risk of errors and ensure compliance.
Want to know more about how Stratsys helps management teams navigate current ESG challenges? Book a demo or Contact us for more information.
