Users of the Code include large and small, public and private enterprises, with or without an existing sustainability reporting system, capital market oriented companies. It is designed for and aimed at companies that seek to inform their stakeholders about their corporate sustainability strategies. In order to meet the Sustainability Code requirements, users prepare a declaration of conformity covering the twenty criteria as well as additional non-financial performance indicators that have been selected from GRI and EFFAS.
The Code makes sustainability performances tangible, has a higher commitment in transparency and is easily comparable. It therefore broadens the basis for evaluating sustainability and outlines the minimum requirements to be met by companies when reporting on their sustainability. Users applying the Code today already satisfy the obligation to disclose non-financial and diversity information that was passed by the EU in 2014. The Code supplements the reporting provided by companies in accordance with binding national and international accounting standards.
The Code is of particular importance to financial analysts and investors: as a result, they can incorporate information on the ecological, social and governance (ESG) aspects of corporate analyses. The Code can be consulted as a basis of evaluation in portfolio management, for corporate bonds, lending, and for investor information. For traditional investors and analysts, the Sustainability Code is a suitable standardized instrument for swiftly gaining a condensed overview of the sustainability information provided by the companies under evaluation. The flow of capital can thus be steered towards sustainable business models and enterprises.