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ESG and sustainability are of minor importance in the 2023 half-year reports of DAX companies

  • Analysis by IR.on AG on communication regarding sustainability topics in the 2023 half-year reports of DAX companies
  • None of the DAX-40 companies published a separate ESG or sustainability half-year report in 2023
  • Nine of the DAX-40 companies have a section on ESG or sustainability in their 2023 half-year reports
  • SAP reports the most comprehensively, followed by Airbus and Deutsche Bank
  • Three of the DAX-40 companies received a "high" rating for their coverage of ESG and sustainability topics in their 2023 half-year reports
  • 24 of the DAX-40 companies received a "very low" rating for their coverage of ESG and sustainability topics in their 2023 half-year reports
     

Cologne, 25th of September 2023 - ESG and sustainability have become increasingly important topics for listed companies in recent years. It has been on the agenda of the DAX-40 companies for a long time and the companies report in detail on their strategies, targets and relevant KPIs in annual sustainability and/ or non-financial reports.

But what about communication regarding sustainability goals and initiatives of the companies during the year. The IR.on team looked at the 2023 half-year reports of the DAX-40 companies.

Not a surprise is that none of the DAX companies has published a "stand alone" ESG- or sustainability half-year report 2023. This is not a regulatory requirement and an integrated report makes more sense. In some cases, but rather few, slides on ESG and sustainability can be found in the analysts' presentations for the earnings calls. Nine DAX companies have a section on ESG and/or sustainability in their 2023 half-year financial reports (Merck, Hannover Re, Airbus, SAP, Mercedes-Benz, Volkswagen, Deutsche Bank, Heidelberg Materials, Continental), although the depth of coverage varies widely. In addition, the handling of the topic of ESG and sustainability in the 2023 half-year reports was assessed by IR.on based on a keyword count.

Airbus, Deutsche Bank and SAP received a "high" rating for their coverage. All three companies have a section on ESG or sustainability and the keywords IR.on searched for appeared frequently in their 2023 half-year reports. SAP stands out with two concise sections (energy consumption and greenhouse gas emissions, non-financial targets 2023 and targets for 2025). In its 2023 half-year report, key figures (CO2 emissions, employee engagement index), non-financial targets and measures as well as strategic approaches are reported.

In contrast, 31 of the DAX-40 companies have no section on ESG or sustainability. Of these, three companies refer to their annual ESG or sustainability reports. Nine companies do not mention ESG and sustainability at all!

All in all, the DAX 40 companies have some catching up to do. Almost all of them state that ESG and sustainability is a strategic topic for them, that it is highly relevant for their customers, investors and the community and that it is an increasingly relevant factor in investment and financing decisions. Therefore, the question arises as to why, in addition to the usual financial key figures, the half-year reports do not cover the status of governance-relevant ESG or sustainability key figures and targets.

Contact

IR.on Aktiengesellschaft

Samuel Stott
Mittelstr. 12-14, House A
50672 Cologne
T +49 221 914097 - 17
E samuel.stott(at)ir-on.com
www.ir-on.com