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Alexander von Brevern works as an ESG Manager at Builtech Holding GmbH. His academic background is in business administration and Alexander discovered his passion for sustainability with a Master’s degree in Sustainable Finance. He is firmly convinced that sustainability is essential for a future worth living and that everyone must play their part. The Builtech Group consists of 30 leading trade companies in the DACH region. As an integrated 360-degree service provider in the field of technical
building equipment (TGA), it focuses on the heating, plumbing,
refrigeration, air conditioning, ventilation, electrical and building automation (MSR) trades. In this blog for Code Gaia, Alexander shares his experiences as an ESG manager in implementing the CSRD and answers very practical questions for anyone facing the challenge of preparing a sustainability report for the first time.
Table of contents
1. how does Builtech overcome the challenges of CSRD implementation?
At Builtech, we are currently in the middle of the process of digging through the “CSRD mud”, as I would call it. It was a tough task at the beginning, but I believe that this will offer a significant advantage for many companies in the long term. It will also be an advantage for the European Union in a global comparison.
In my role, I am responsible for sustainability, and I spend a large part of my time – certainly 60 to 70 percent – on implementing the CSRD (Corporate Sustainability Reporting Directive). Fortunately, we started preparing for this obligation at an early stage. We are only obliged to record data from next year, and we have to report on it from the year after next. It has turned out to be extremely important to start now and learn from the data we collect. If we had only started at the end of the year, we would probably have run into considerable bottlenecks.
Thanks to Code Gaia, we are on the right track. We initiated all the necessary processes in good time, defined the data that we need to collect and drew a clear picture of which topics are relevant for us. It is crucial to set the right priorities, as resources are limited in every company. Of course you would like to implement everything at once, but it is important to proceed strategically.
2. what were your first steps as an ESG manager?
I am the first ESG manager at Builtech, this position was newly created. Our business model in itself is already a good step in the right direction, as we install heat pumps and photovoltaic systems, among other things. These activities already have a positive impact on the environment. But the whole topic of sustainability has not yet been anchored in the internal company area. That is now my job.
The first step was to collect data. However, not in the sense of collecting data for external reports, but to gain an overview ourselves: Where do we actually stand? What is the status quo? There are 30 different companies in our Group that operate very independently. This means that you have to dive deep and talk to managers and employees to understand what standards and certifications already exist. Are there ISO certifications? Are there Ecovadis ratings? Are there any efforts in the area of energy efficiency or climate protection?
The second step was to find out which topics are relevant for us. We asked ourselves which topics are not only important, but also legally binding for us. The CSRD and the Supply Chain Due Diligence Act (LkSG) are of particular importance here. On the other hand, we also had to determine what level of ambition we wanted to pursue: Where do we want to go? What can we afford? What do we have the resources for and how do we best distribute them?
Answering these questions and developing a clear strategy was and is a central part of my work. The aim is not only to meet the legal requirements, but also to set ambitious targets that will help us make progress in terms of sustainability.
3. how were you able to communicate the urgency of the CSRD to the management?
Fortunately, I personally had no major problems with the fact that sustainability is taken seriously in the Builtech Group. I was hired for precisely this reason, because the management recognized that we were facing a major challenge and that we could only overcome it with the right expertise.
Perhaps I can make a recommendation based on my experience and what I often hear from my network: In many companies, management is not yet fully convinced that sustainability is necessary and should be an integral part of the business. Here it is helpful to examine the topic from two perspectives:
On the one hand, the commercial added value of sustainability should be emphasized. It has been scientifically proven that companies that focus on sustainability are more profitable, more resilient and better positioned in the market. These companies are more future-proof and better prepared for upcoming challenges.
On the other hand, the Corporate Sustainability Reporting Directive (CSRD) should be seen as an important element of risk management. For many companies that do not yet have a comprehensive risk management system, the CSRD is a great opportunity to develop one. At its core, it is about managing risks, particularly in relation to climate and environmental risks. Bringing this focus to the fore can be particularly helpful in emphasizing the need for sustainability measures.
I have to admit that as a manager and staunch sustainability advocate, I sometimes find it difficult to focus solely on the commercial benefits. But ultimately it’s about making progress. If the commercial aspect is the argument that convinces the management, then it is the right way to provide the necessary resources for sustainable measures. The road to sustainability may sometimes be rocky, but every step in the right direction counts.
4. which departments and contact persons from the company must work together for the CSRD?
In every company, it is important to work across departments. In our holding company, we have specialists for every topic, be it finance, marketing or purchasing. The person responsible for the Corporate Sustainability Reporting Directive (CSRD) can never have the comprehensive knowledge that they bring to the table alone. CSRD affects all topics and areas of the company. It is crucial to have a contact person in each department and for each responsibility who can contribute this specific knowledge.
I have already learned in our process how important it is to maintain such connections. Each department contributes its knowledge to the materiality analysis of the CSRD. A small example from our practical experience: In our survey on the double materiality analysis, we asked our managing directors. My first assumption was that water was not a big issue in the trade sector, especially on our construction sites. It was only through the involvement of internal stakeholders that I realized that water is, of course, an important issue. Especially because we are active in the sanitary sector and therefore play a key role in the provision of drinking water in buildings.
This knowledge must be incorporated into the CSRD process in order to obtain a holistic picture. Finally, the auditors also review our CSRD reports. If they have specialist knowledge that I, as the CSRD manager, may not have, and they come across material issues that have not been taken into account, this can be problematic. It is therefore essential to involve all departments and managers to ensure that all relevant information and perspectives are included in the CSRD process. This is the only way we can meet the legal requirements and present a complete and well-founded picture of our sustainability efforts.
5. what is the right approach for a successful CSRD implementation?
My approach, which I have always found to be very effective, is to invest as much time as possible in internal communication and education. It is not only important to promote CSRD internally, but also to explain what CSRD actually is, why we are doing it and what added value it offers. The added value is a crucial point, because let’s be honest: hardly anyone in the company has much desire to deal with the meticulous tasks of data collection. The benefits of this work are often only visible later and are not immediately tangible.
However, there is scientific evidence that companies benefit from sustainable practices in the long term. This must be made clear to employees. You should understand that the CSRD is not just an onerous legal requirement that should be met with minimal effort. If you treat the topic as a compulsory exercise, you risk merely fulfilling the legal requirements without taking advantage of the additional benefits that can result.
In my opinion, compliance with the CSRD offers the opportunity to gain a significant competitive advantage. However, this advantage can only be realized if everyone in the company works together and takes the issue seriously. Teamwork is the key here. Everyone must be aware that their contributions not only contribute to compliance with the law, but also to improving the company’s market position. This is the only way we can exploit the full potential of CSRD and really benefit from it.
6. why did you choose a CSRD software solution?
In our company, the implementation of the CSRD is solely in my hands and I am supported by a very hard-working student trainee. We are lean overall, which is fine. Fortunately, there are software solutions that make our work easier. If I had to do everything in Excel with our personnel setup, I can guarantee that it would be absolutely impossible to meet the requirements on time.
So one of my first steps after starting was to immediately look for suitable software. That’s when I came across Code Gaia. The market for such solutions is huge and you could spend months testing all the options. Code Gaia impressed me with its design, setup and, above all, the expertise it offers. It was particularly important to me that the software not only offers technological support, but also sound knowledge in the area of sustainability. This is essential for many companies that often do not have this expertise internally.
The collaboration with Code Gaia went hand in hand right from the start, which was crucial for me. They not only offered a software solution, but also advice and support in the area of sustainability. This has enabled us to enter into an effective partnership that helps us to achieve our CSRD goals efficiently.
7. what are your next steps in preparing for the ESRS (European Sustainability Reporting Standards)?
We have decided to tackle the whole process of dual materiality in parallel. This is an option, but not a must. In our case, it makes sense because we want to learn a lot through the process and work on the various steps at the same time. We are currently working on determining the impact and materiality. In two days, we have our third workshop, which is about determining the financial risks and opportunities. These topics are closely interlinked and by working on them in parallel, we gain valuable insights that influence each other.
After the third workshop, we will have a more or less final set of topics, impacts, risks and opportunities, the so-called IROs (Identification of Impacts, Risks and Opportunities), which we need to assess. This assessment will take some time, as we need to have many discussions internally to define thresholds and incorporate different perspectives from different departments. It will probably take us two to three weeks to complete a full assessment.
As soon as we have recorded around 60 to 80 percent of the topics and data, we start to implement the necessary processes in the company. We will check whether data is already available that we can use. As we are active in the skilled trades sector, there is often little existing data. However, this also offers an opportunity: we can design the processes correctly from the ground up so that they function smoothly and ultimately enable good analysis of the data. Our aim is to build a solid system from the outset that supports efficient and reliable reporting.
8. how many stakeholders were regularly involved in the preparation of the ESRS report and how much capacity did it tie up?
So far, we have mainly focused on internal stakeholders. To explain this in more detail: Our company setup consists of a holding company and many independent operations. We have identified the managing directors of these companies as important stakeholders, as they have different insights due to the different trades involved. We involved everyone in the process by conducting a stakeholder survey on Code Gaia. This survey was already pre-formulated and the managing directors only had to indicate which topics they considered important in connection with sustainability. This process took about two to three weeks. Sometimes it was necessary to call the executives and explain why this survey is important and why their participation is needed.
We are also in the process of surveying external stakeholders. The reactions vary: some are already familiar with the CSRD and are therefore more willing to participate because they know that they will have to take similar steps themselves. In such cases, the willingness to cooperate is greater. In other cases, a more in-depth explanation is needed as to why we are collecting this information and what it means. A simple e-mail is often not enough. It usually starts with an email containing basic information, but then phone calls or face-to-face meetings are often required to fully explain the issue.
It is also possible to meet with stakeholders for interviews instead of simply conducting a survey. However, we initially opted for the survey to speed up the process and give stakeholders an easy way to express their thoughts and ideas on the topics. This approach has proven to be very effective, as it is often easier for the participants to express themselves in writing and thus articulate their thoughts.
9. how did you determine the material topics according to the ESRS?
We started by going through the major thematic blocks of the ESRS step by step. In doing so, we always had the entire value chain in mind. After all, it’s not just about how our own company can benefit or be affected, but also about the impact we have on other companies, suppliers and society.
After the workshop, we sat down with the management again the next day to make sure we stayed on topic and didn’t lose momentum. I think this is very important, as otherwise it is difficult to get back into the process mentally. This allowed us to use the existing knowledge and discover new topics.
10. at what point did you include the audit?
Theoretically, it is possible to include the audit in the process at any time. This is advantageous as the auditors can regularly ask questions or provide feedback and are therefore closely involved in the process. It is also possible to call in the auditors at a later date or only after the first report has been completed.
