Interviewer: Pascal, congratulations to your first investment at EnBW New Ventures! Why has ESG software become an investment topic for you?
Pascal: Firstly because of market potential and reporting obligations: The market potential for ESG reporting is enormous. Currently, 11,700 companies are subject to reporting obligations, with a significant number of indirectly affected suppliers and partners. It's inevitable that all companies will eventually be required to disclose their ESG data. As demands escalate, the necessity of a centralized system for accurate data transmission cannot be overstated.
Secondly, for companies like EnBW, their ESG rating is integral to their business model. It directly influences the conditions under which they can raise capital in the financial markets. Moreover, every entity in the value chain is implicated in this process; sales and orders can only be generated if they provide the requisite ESG data.
Furthermore, based on regulatory requirements, sustainability reporting will assume a similar importance to financial reporting in the future. This presents companies with major challenges, as the required sustainability data is often only available on a decentralized basis in individual data silos within the company. The solution is software solutions that enable the collection and use of ESG data.