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string(6231) "Having adopted the Corporate Sustainability Reporting Directive (CSRD) in January 2023, the EU is gradually expanding the cohort of businesses that will be obliged to report on their sustainability performance moving forward. In Germany alone, some 15,000 companies are directly affected by this expansion of the reporting requirement. “But many more companies are indirectly impacted, because the bigger ones that are obliged to report will need information from their suppliers and business partners in order to provide their own reports”, point out Stephanie Kopp and Florian Harrlandt, coordinators of the German Sustainability Code (DNK) at the German Council for Sustainable Development (RNE). Even though the first companies will not have to report on the 2024 fiscal year until 2025, businesses are better advised to start preparing now rather than wait until nearer the time.
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Transparent and comparable
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The answer soon came: with academic support from Dr Bassen, the RNE adopted the DNK in October 2011. Based on a set of 20 criteria, the Code maps sustainability in the corporate context, allowing companies to report on issues such as climate change and compliance with labour law, but also existing targets and measures.
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“The DNK can offer a great deal of added value for companies now and in the future, by consolidating new European reporting requirements and making them easily accessible, for SMEs in particular. That will be a huge help with the implementation and funding of the transformation”, says Dr Bassen, emphasising: “The strategic anchoring of sustainability in companies along with transparent reporting are essential for competitive and future-proof positioning.”
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The last two years have seen the number of corporate users multiply. “That’s a clear sign of need for the support the DNK offers. Throughout Germany and beyond, companies are using the DNK to evidence their contribution towards achieving shared objectives like the UN’s Sustainable Development Goals or the Paris climate targets. We are delighted to continue incentivising corporate responsibility with the DNK”, confirms Hoffmann.
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The need for support as SMEs push on with their transformation will only accelerate. “The DNK has already established itself as an orientation guide, and we want to make sure we keep that up and preferably expand it”, add Kopp and Harrlandt. Having proved itself as a reliable companion for businesses, it would appear that the DNK is here to stay for the next ten years and no doubt beyond.
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string(366) "European companies are going sustainable – at least that’s the plan, as the EU aims to boost sustainability in business with the Corporate Sustainability Reporting Directive. The regulation presents challenges for many companies, but these can be overcome with the German Sustainability Code (DNK). So what is the secret to the transparency standard’s success?"
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Berlin, 2 October 2019 – The German Council for Sustainable Development (RNE) and its Sustainability Code office are entering into a strategic partnership with the financial technology start-up Arabesque S-Ray GmbH. Together, they will be working to create a public and transparent data storage facility for companies’ environmental, social and governance (ESG) data. This project will play its part in achievement of the UN’s Sustainable Development Goal 17 “Partnerships for the Goals”. “The aim here is to take the successes of the Sustainability Code to the next level and enhance the credibility and market relevance of corporate responsibility reporting,” Prof. Dr Günther Bachmann, Secretary-General of the RNE, explains.
“The partnership between Arabesque S-Ray and the Federal Government’s Sustainability Council will improve the quality and availability of ESG data significantly. The Sustainability Code has been a highly popular ‘export’ as companies abroad are now applying it, in addition to their counterparts in Germany. We are delighted the RNE has placed its trust in us and look forward to gathering this data together,” adds Andreas Feiner, Co-Founder of Arabesque.
Over the months to come, the partners will be working on developing an open-data solution for sustainable business. The Code’s database already provides a publicly accessible platform for structured reporting on sustainability topics. Currently, 540 companies in Germany of all sizes and legal forms are applying this reporting standard on a voluntary basis. These include pioneers who have been publicly disclosing their steps towards integrated sustainability management for some eight reporting years now. With around 1,100 Code declarations, the Sustainability Code is well established as a recognised reporting standard. “The task now is to scale up the Code and position it in such a way that it can help shape economic relationships at a global level as well,” comments Bachmann.
The RNE cooperates with a variety of stakeholders such as EcoVadis, the Greek QualityNet Foundation, the Czech Ministry for the Economy and the German Sustainability Award. In its advisory capacity to the Federal Government, the RNE brought the Sustainability Code into being as a reaction to the 2008 financial and economic crisis in dialogue with representatives of the financial market and the corporate sector. It builds on international standards, translates these into focused reporting requirements, is free to use and is, thus, well suited to be applied as a blueprint for implementation throughout Europe as well as globally. The RNE has been managing the voluntary reporting standard since 2012 and has since 2014 been publishing the Code reporting of companies and organisations in a publicly accessible database.
Media Relations
Marijke Eschenbach German Council for Sustainable Development Office c/o GIZ GmbH Potsdamer Platz 10 10785 Berlin Telephone: 030/338424-233 E-Mail: marijke.eschenbach@nachhaltigkeitsrat.de
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string(3360) "Athens, 9th April 2019 – Turkey is about to become the third country with a national Sustainability Code. The Turkish Sustainability Code, the result of a cooperation between the Sustainability Code and the Turkish Center for Sustainable Production Research and Design (SÜRATAM), was announced at the Sustainability Outlook 2019 conference in Athens on 5th April 2019. Dr. Hüdai Kara and Julia Graner, Director and Manager of the Turkish Sustainability Code project, respectively, attended the conference to represent SÜRATAM.
The Sustainability Code, a reporting standard introduced by the German Council for Sustainable Development (RNE) in 2010, is open to independent, country-specific adaptations. According to the RNE, further EU and global parties are interested in the experiences with the Sustainability Code and its options for national adoption along with Turkey who is at an advanced stage of adaption and implementation.
The Sustainability Code and SÜRATAM agreed to cooperate on an adaption of the Sustainability Code at the end of 2018. Currently the Turkish Sustainability Code is at a stage of consultation with stakeholders and work on an adaption of some of the criteria to the local conditions. Relevant stakeholders and actors identified are academia, local and multinational companies, business associations, chambers of commerce, as well as civil society and consultants. The most important activities include networking to interlink relevant aforementioned actors in the development of the Code and researching further cooperation opportunities. Some important milestones including the Turkish translation of the Code and a bilingual web presence have been achieved. The Turkish Sustainability Code team is based in the offices of SÜRATAM and makes use of SÜRATAM’s members and extensive industrial network to further raise awareness of sustainability topics in all sectors and industries.
“The cooperation is a milestone for sustainability reporting in Turkey, where sustainability reporting is voluntary and at a comparatively low level. The Turkish Sustainability Code will serve local companies from small to large as a tool for transparency and assessment on sustainability. The introduction may even lay the foundation for a Code-inspired sustainability index of listed companies based on accepted KPIs and metrics.” says Dr. Kara, a member of the board at SÜRATAM and Director of the Turkish Sustainability Code.
The partnership between the Code and SÜRATAM shows that the contents of the Code are cross-border relevant and applicable. A look at the widely varying standards of sustainability reporting and the growing interest in standardization underlines that an instrument such as the Code, which focuses on materiality, commitment and transparency, can offer a good and feasible option to internationally promote sustainable business practices.
Commenting on the announcement, Yvonne Zwick, Head of the Sustainability Code Office and Deputy Secretary General at the German Council for Sustainable Development noted: “The team in Turkey is laying the foundation to kick start the disclosure of sustainability efforts from companies of all sizes in Turkey. We are delighted to witness the announcement of the Turkish Sustainability Code and welcome them to the Code family.”"
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Companies wishing to get ahead can avail themselves of a tried-and-tested tool that is free to use, in the form of the DNK. “The DNK is an established standard for structured publication of corporate sustainability performance. The various offerings of the DNK office are just as helpful for first-time users as they are for companies experienced in reporting”, says Dr Alexander Bassen, professor of business administration at the University of Hamburg, former RNE member and academic advisor on the DNK. Already 1,000 users are taking advantage of the DNK’s services, primarily attracted by the low-threshold access to the topic, according to surveys of participating companies. Another benefit of the Code is the impetus it provides for internal reflection and change – something that is also gaining ground among employees.
Transparent and comparable
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The answer soon came: with academic support from Dr Bassen, the RNE adopted the DNK in October 2011. Based on a set of 20 criteria, the Code maps sustainability in the corporate context, allowing companies to report on issues such as climate change and compliance with labour law, but also existing targets and measures.
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“The DNK can offer a great deal of added value for companies now and in the future, by consolidating new European reporting requirements and making them easily accessible, for SMEs in particular. That will be a huge help with the implementation and funding of the transformation”, says Dr Bassen, emphasising: “The strategic anchoring of sustainability in companies along with transparent reporting are essential for competitive and future-proof positioning.”
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An important aim of the DNK is to turn sustainability into a market-relevant criterion, and the growing number of corporate users shows that this is indeed working. “The DNK is a success story. For over ten years now, large and small firms alike have been working towards the goal of sustainable business with the help of the DNK”, beams RNE Chair Reiner Hoffmann. “What sets the DNK apart is its modular approach. Though a voluntary code of practice, it also enables businesses to fulfil their reporting duties. And it will continue to help companies of any size realise different reporting obligations in the same format”, add Kopp and Harrlandt.
The last two years have seen the number of corporate users multiply. “That’s a clear sign of need for the support the DNK offers. Throughout Germany and beyond, companies are using the DNK to evidence their contribution towards achieving shared objectives like the UN’s Sustainable Development Goals or the Paris climate targets. We are delighted to continue incentivising corporate responsibility with the DNK”, confirms Hoffmann.
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The need for support as SMEs push on with their transformation will only accelerate. “The DNK has already established itself as an orientation guide, and we want to make sure we keep that up and preferably expand it”, add Kopp and Harrlandt. Having proved itself as a reliable companion for businesses, it would appear that the DNK is here to stay for the next ten years and no doubt beyond.
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