ESG as an Obligation and Opportunity: Gain a Competitive Advantage

What is ESG?

ESG is one of the most talked-about topics in business and public policy today. The need to protect the climate, promote responsible social practices, and increase company transparency is being discussed more intensely than ever. This has led to new legislative requirements that reinforce the importance of sustainability reporting.

ESG represents three key areas that companies should focus on if they want to conduct responsible, sustainable, and ethical business:

E – Environmental (Environmental Factors):

Energy and water consumption
Waste production and management
CO₂ emissions
Impact on ecosystems and biodiversity

S – Social (Social Factors):

Working conditions and equal opportunities
Inclusion and diversity
Employee education and development
Community and charitable activities

G – Governance (Corporate Governance):

Ethics and transparency
Anti-corruption measures
Management accountability
Governance and disclosure of key information

ESG is not just about environmental protection, but also about how a company treats its employees, suppliers and community, as well as how the organization is managed.

Why is it important? Companies that actively address ESG can better manage risks, build trust and achieve sustainable long-term growth in line with market expectations and regulations.

The Importance of ESG – More Than Just a Legal Obligation

At first glance, ESG may seem like just another administrative burden, but in reality, it offers companies a wide range of tangible benefits:

Better Financing Opportunities: Banks and investors are increasingly favoring companies with a proven commitment to sustainability. This can lead to easier access to loans or more favorable financial conditions.
Stronger Relationships with Partners: Environmental and social responsibility are becoming key factors in tenders and public procurement processes. Preparing for ESG can help you meet - or even exceed - strict requirements and gain a competitive edge.
Strong Employer Branding: Young generations are seeking employers who share their values and actively contribute to positive social or environmental change. Thanks to ESG, you will become a more attractive employer and retain high-quality employees more easily.
Positive Impact on Reputation: A focus on transparency, emission reduction and ethical business practices enhances a company’s credibility in the eyes of the public. This translates into loyal customers and, ultimately, stable revenue growth.
Long-Term Stability and Growth: Responsible resource management, operational efficiency and risk mitigation directly influence economic stability and profitability.

ESG is not just a passing trend, but a well-thought-out investment in the future, enabling companies to adapt more flexibly to evolving market and regulatory conditions.

Mandatory ESG Reporting in Slovakia

In connection with an amendment to the Accounting Act, which came into effect on June 1, 2024, major changes are expected for Slovak companies. This amendment implements the European CSRD (Corporate Sustainability Reporting Directive) into our legal framework - a directive on corporate sustainability reporting.

The essence of the directive is that selected companies will be required to start reporting their sustainability activities in a "Sustainability Report" starting in 2025.

Who does ESG reporting apply to?

Large companies that meet at least two of the following three criteria (for two consecutive financial years):

Total assets exceeding €25 million
Net turnover exceeding €50 million
More than 250 employees on average during the financial year

These companies will be required to prepare the first sustainability report for the period starting January 1, 2025, to be published at the beginning of 2026.

In 2026, the obligation will extend to smaller companies which are listed on the stock exchange.
Smaller companies that do not meet the size criteria can voluntarily prepare an ESG report, which will help them better prepare for future legislative or market demands.

The implementation of CSRD represents not only a challenge for companies, but also an opportunity. Through more detailed reporting, they can identify weaknesses in their operations, manage risks more effectively and optimize processes - from energy consumption to social and governance aspects. In the area of energy efficiency, FUERGY can help achieve tangible, measurable results that are valuable for comprehensive ESG reporting.

How FUERGY Helps Achieve ESG Goals

While ESG reporting may seem complicated, timely data collection and the implementation of technologies to improve your environmental profile can help you avoid complications when new regulations are introduced. Our brAIn technology is one of the specific solutions for meeting these requirements.

Smart Battery Storage brAIn by FUERGY

Our smart battery storage and software solutions:

Optimize energy consumption and help stabilize the power grid
Provide ancillary services, reducing the need for fossil fuel use
Contribute to the reduction of CO₂ emissions, which companies can quantify and report in their ESG report.

How does it work?

Our brAIn system not only optimizes electricity consumption, but also opens new profit opportunities for businesses while contributing to more sustainable energy management. When there is an excess of electricity in the grid - which is also cheaper and more environmentally friendly - brAIn automatically charges the batteries. Conversely, during peak times or when electricity is more expensive, it uses stored energy, reducing costs and relieving the power grid.

In addition to savings, it provides businesses with extra income from offering flexibility and ancillary services to the power grid. By efficiently managing consumption and utilizing cleaner energy, brAIn contributes to the reduction of CO₂ emissions, positively impacting not only the company’s ESG report, but also its real environmental footprint.

What will cooperation with FUERGY bring you?

Measurable results for your ESG report and lower costs
With the brAIn technology, you can precisely quantify how much CO₂ you have saved compared to your usual setup. In addition, optimizing energy consumption reduces electricity costs - this is a win for both the environment and your business budget. This data is valuable for ESG reporting, reflecting real consumption, flexibility and savings. However, there is currently no unified methodology for their audited verification.
Innovative company branding
Demonstrating real steps towards sustainability is a great calling card for business partners, employees, and the public.
Flexible and reliable system
Our solutions can be tailored to different types of businesses and industries. We cover the entire implementation process, from energy analysis to installation, storage management, and ongoing service and maintenance.

As a result, this means lower bills, more stable business and a better image in the eyes of investors.

Practical example – BILLA goes green

BILLA has decided to take its sustainability strategy to the next level. In one of its stores, we implemented a smart battery storage brAIn.

Thanks to the zero-emission battery storage, which replaces fossil fuel sources and provides ancillary services to the power grid, BILLA can improve its ESG score by almost 73 tons of CO₂e annually. This saving represents a reduction in the total carbon emissions from the store’s electricity consumption of approximately 25%. To achieve the same emissions savings, a photovoltaic power plant with an installed capacity of 463 kWp would be needed, or planting approximately 3,500 mature trees.

Do you want to achieve similar results? Contact us and find out how smart battery storage can help you.

The carbon footprint of the installed storage, according to our life cycle analysis, is only 13.2 tons of CO₂e. This means that the storage has already successfully paid off its carbon debt and is now generating net CO₂e savings.

The investment has an expected payback period of up to four years, after which the technology becomes a pure source of financial savings, helping BILLA maintain lower energy costs long term. With this solution, the company not only saves money, but also contributes to real emissions reduction and meets its ESG goals in a measurable and sustainable way.

How to start with ESG reporting?

Conduct a baseline analysis
Identify areas where you have the greatest environmental or social impact.
Set measurable goals
Consider what you want to improve, whether it's energy efficiency, recycling, supporting diversity or transparency in governance.
Implement measures and technologies
Choose solutions that will help you achieve your goals, such as installing smart battery storage with an intelligent EMS management from FUERGY.
Data collection and transparent reporting
It’s important to have relevant, verifiable and comparable data that you can include in your ESG report. International standards such as GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board), or TCFD (Task Force on Climate-related Financial Disclosures), as well as new European standards like ESRS (European Sustainability Reporting Standards), can assist you in understanding what data to collect and how to report it transparently. These frameworks allow companies to benchmark themselves against competitors globally and provide investors with reliable information when making funding or partnership decisions.
Communicate the results
Inform your employees, customers and investors about what you’ve achieved and what you plan to do next.

If you are unsure where to start or need help with specific steps, you can reach out to experts and consultants who specialize in ESG. There are several companies in Slovakia that focus on ESG audits – you just need to search for available options online. Their support can save you time and ensure the accuracy of reported data.

For companies that undergo both financial and ESG audits, we recommend assigning both audits to the same auditing firm or auditor. This solution can simplify the process, minimize data duplication and ensure consistent evaluation. However, do make sure the auditor is licensed for ESG report audits.

Don’t wait, prepare yourself

ESG is becoming an essential part of successful business, not only helping to meet legislative requirements, but also creating better conditions for long-term growth and the company’s reputation.

Don’t wait until you are pressed by legislative deadlines – early preparation will not only make reporting easier, but also bring you financial savings, a competitive advantage and credibility with investors and business partners.

Contact us today and find out how our smart battery storage system brAIn, can help you reduce your carbon footprint, optimize energy costs and show that you are serious about sustainability.