What is ESG and How Does It Promote DEI?
In today's business environment, ESG (Environment, Social, Governance) is gaining increasing importance. It is an approach that emphasizes both financial and non-financial factors to assess the sustainability and social responsibility of companies.
ESG covers three key aspects of corporate responsibility:
Environment: Managing resources, energy efficiency, and environmental protection.
Social: Responsibility towards employees and society, with a particular focus on DEI (Diversity, Equity, and Inclusion).
Governance: Transparency and ethical corporate governance.
DEI and ESG Reporting: An Opportunity for Sustainable Change
In the DACH region, the social dimension is gaining increasing focus, driven not only by regulations such as the EU-CSRD but also closely monitored by employees and investors. It encompasses aspects that help companies act fairly and responsibly.
Diversity, Equity, and Inclusion (DEI) are central aspects of social sustainability, becoming increasingly important for businesses. Inclusion presents an opportunity to drive positive change, as confirmed by 65% of participants in our 2024 webinar survey. They viewed ESG and Disability Reporting as key to advancing DEI. Inclusion KPIs not only help meet compliance requirements but also serve as a powerful tool for sustainable progress.
Benefits of Measuring Inclusion
Visibility for DEI: DEI is often overlooked. By measuring and internally communicating the results, the topic becomes more visible within the company. Concrete KPIs speak the "language of management" – they make DEI and the inclusion of people with disabilities a fixed part of boardroom discussions.
Comparability and Progress Tracking: Collecting inclusion metrics, such as the Inclusion Score from the myAbility Compass, allows for comparisons with other companies. A benchmark provides orientation and demonstrates how successful individual DEI initiatives are over time.
Transparency and Credibility: External communication as part of reporting brings transparency and strengthens credibility. This positively impacts employer branding and authentically positions the brand among customers with disabilities.
Planning and Targeted Management: Continuous evaluation of DEI KPIs creates predictability and supports resource allocation that focuses on impact. Diversity management can thus steer and further develop initiatives in a targeted manner.
DEI and ESG Reporting: Current Regulations in the DACH Market
Sustainability reporting has evolved significantly in recent years, with inclusion metrics previously disclosed voluntarily as part of CSR and diversity management. However, new regulatory requirements are now fundamentally changing this.
- With the new Corporate Sustainability Reporting Directive (CSRD) from the EU, reporting on DEI metrics is becoming mandatory. The CSRD requires large companies to systematically collect and disclose both financial and non-financial metrics, such as DEI KPIs. This creates transparency, comparability, and makes progress in DEI visible. The CSRD, along with the European Sustainability Reporting Standards (ESRS), establishes a central framework for a more inclusive corporate practice in Europe.
- The European Accessibility Act (EAA) sets requirements for the accessibility of products and services. In Austria, this directive will be implemented through the Barrierefreiheitsgesetz (BaFG), and in Germany through the Barrierefreiheitsstärkungsgesetz (BFSG), both from summer 2025.
