“The State of Sustainability Reporting in Europe”, a new study published by the Mannheim-based software company osapiens, has found that companies from Germany, Austria and Switzerland (DACH) are implementing European sustainability regulations much more effectively than their neighbouring countries.

The study shows that 88 per cent of the companies surveyed by osapiens have already started implementing digital solutions to comply with regulatory requirements, according to a statement. Of them, 29 per cent have even fully automated these solutions. In comparison, in other European countries (Nordic countries, Spain, France, Italy and Benelux) this proportion is only nine per cent.

According to the study, 85 per cent of respondents from German-speaking countries reported the benefit that they are now ready to meet the new requirements of the Corporate Social Responsibility Directive (CSRD) and the EU Supply Chain Directive (CSDD). In the rest of Europe, this figure is only 41 per cent. Despite ongoing discussions, 97 per cent of DACH companies see these regulations as a driver of innovation.

Among the disadvantages reportedly cited are deficiencies in bureaucracy, problems with data collection and quality, a lack of transparency, and issues around expertise in ESG (environmental, social and governance). Nevertheless, 65 per cent of respondents in the DACH region were able to improve their product developments by complying with regulations.

"The DACH region shows impressively that those who invest in technology at an early stage are not only compliant from a regulatory perspective, but also have a strategic advantage," Alberto Zamora, CEO and co-founder of osapiens, is quoted as saying in the statement. “Automation, platform thinking and central data strategies are the key to not only meeting the constantly growing requirements, but also to gaining a real competitive advantage.”

Innovation expert Chris Heemskerk considers this approach as key for building an elite innovation culture in companies. For this, he outlines three components: “turning ideas into action, risks into learning, and change into opportunity”. He will be speaking on this topic at the Open-i innovation conference in November. Chris Heemskerk previously held executive positions at Google North America and is now the founder and CEO of The Innovation Alliance, a global network of leading innovation leaders and technology decision-makers. ce/ww

DACH countries drive innovation with sustainability

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