Monday June 2nd, 2025

Are strong ESG scores synonymous with financial resilience and market competitiveness?

ESG (Environmental, Social & Governance) is on the agenda of all boards, either because the companies are directly covered by the EU’s Corporate Sustainability Reporting Directive or because, as a smaller company with customers among the large companies covered, they are forced to deal with it.

The EU countries, especially Denmark, have long been leaders in the green transition, and a number of growth opportunities have emerged in this regard. Just think of companies like Ørsted, Novozymes, CIP, and Vestas, among many others. However, compliance and reporting requirements also mean that in the EU, we quickly risk losing competitiveness compared to companies in the USA, China, India, Vietnam, etc., which can operate under more traditional market-oriented conditions.

How can Danish boards tackle the challenge between the necessary green focus and stronger competitiveness against the USA and the Global South?