ESG data and AI are key to resilience, efficiency, and growth

Leveraging Sustainability as a Competitive Advantage

  • Article
  • 3 minute read
  • 09 Apr 2025
Gunther Dütsch

Gunther Dütsch

Partner, Sustainability Services & Climate Change, PwC Germany

Benjamin  Lösken

Benjamin Lösken

Director, Sustainability Services, PwC Germany

Sustainability is becoming a key strategy for future-proofing businesses. Even though the EU Omnibus Initiative promises regulatory simplification and additional time to implement many requirements, now is the time to invest in ESG data and AI technology. This not only enables more efficient resource use and a more resilient supply chain but also helps unlock new business potential. Those who act today can secure a decisive competitive advantage and be well prepared for future developments.

Immediate Sustainability Action is the Best Strategy

Despite possible delays in EU sustainability compliance regulations, forward-looking companies should use the additional time to invest in ESG technology and data. This will not only prepare them for future regulatory landscapes but also increase their competitive advantage and resilience in an increasingly sustainability-driven marketplace.

The urgency of such investments is supported by the findings of PwC’s 2025 State of Decarbonization report, which highlights a growing commitment among companies to take action on climate change. The need for immediate action is further underscored by the increasing impacts of climate change. Extreme weather events in Germany are estimated to have caused €145 billion in damages between 2000 and 2021 (Trenczek, J., et al., 2022) and will continue to do so in the coming decades (Flaute, M. et al., 2022).

In light of these realities, the use of ESG data and AI technology is becoming an indispensable strategy. It provides a compass for identifying effective sustainability initiatives and turning a wide range of environmental, social and governance risks into growth opportunities by:

  • Risk assessment & mitigation: ESG data helps identify and assess climate-related risks within the supply chain, like resource scarcity, extreme weather events, or regulatory changes, enabling proactive mitigation strategies.
  • Sustainable sourcing: Companies can use ESG data to select suppliers with strong environmental and social practices, ensuring ethical sourcing, reducing reputational risks, and meeting growing consumer demand for responsible products.
  • Resource optimization: ESG data allows for tracking resource consumption (water, energy, raw materials) and identify areas for reduction, leading to significant cost savings and reduced environmental impact.
  • Waste reduction and circularity: By analysing waste streams and material flows, companies can implement circular economy models and find ways to reuse, repurpose and recycle materials, reducing disposal costs and creating new revenue streams.
  • Product innovation: Consumers increasingly demand greener products. ESG data can help identify market trends and consumer preferences, and support companies in developing new products and business models.
  • Attract ESG-Focused Investors: Investors are increasingly prioritizing companies with strong ESG performance. By demonstrating their commitment to sustainability through transparent data, companies can improve their access to capital.

A clear roadmap for sustainable success

A clear implementation roadmap will help companies make the most of the extra time they have been given by the Omnibus proposal. Both ESG data and AI technology can advance corporate sustainability, from risk assessment to unlocking new business models. In addition to their individual benefits, when combined they offer significant synergies that can help to better monitor and build a truly sustainable and resilient business model. Thus, by taking sustainability action today, companies can gain a competitive edge.

2-Year ESG Strategy Implementation Roadmap​

Strategy & Gap Analysis​

Activities

  • Conduct materiality assessment
  • Establish governance structure​
  • Define KPIs​
  • Conduct data readiness assessment​
  • Select best-fit ESG tool​

Milestones

  • Documented sustainability strategy with clear goals, KPIs, and assigned responsibilities​
  • Definition of ESG tool for an efficient ESG management​

Data Infrastructure & Risk Assessment​

Activities

  • Implement ESG tool and integrate data sources​
  • Initial testing of ESG tool​
  • Risk and opportunity assessment​
  • Stakeholder engagement​
  • Establish security and access protocols​

Milestones

  • Functional ESG tool where all relevant data is aggregated and processed​
  • Release of MVP​
  • Documented risk and opportunity register​

CSRD Reporting & Assurance Readiness​

Activities

  • Develop data analytics capabilities in ESG tool​
  • Automate report generation​
  • Conduct trial assurances with providers​

Milestones

  • Audit-proof ESG data​
  • Automated report generation enabling decision making
  • Completed draft CSRD report reviewed internally​

Publication & Refinement​

Activities

  • Finalize report with external assurance​
  • Implement a performance tracking system​
  • Optimize data integration​
  • Publish and communicate findings​
  • Gather stakeholder feedback​

Milestones

  • CSRD report​
  • Automated, efficient, and consistent process for continued performance tracking and stakeholder engagement​

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Gunther Dütsch

Gunther Dütsch

Partner, Sustainability Services & Climate Change, PwC Germany

Tel: +49 160 3739019

Benjamin  Lösken

Benjamin Lösken

Director, Sustainability Services, PwC Germany

Tel: +49 160 5364533

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