There are countless Certifications, standards and norms to the topics Sustainability and ESG. Most of these relate to individual parts, processes or areas of a company, are industry-specific or even product-related. For example, there are over 20 relevant certifications that focus solely on the environmental impact of buildings. Here the Overview is difficult to retain.
Holistic Certifications, standards and norms offer companies a convincing way to credibly demonstrate their ESG commitments and sustainability. These go far beyond individual aspects and evaluate the company as a whole and not just individual products.
For Customers, Investors and others Stakeholders such certificates are a particularly confidence-building signal that the company takes its responsibility seriously. Furthermore, by implementing holistic sustainability standards, companies can Optimize internal processes and Leveraging efficiency potential.
Here is an overview of some of the most relevant and well-known ones:
German Sustainability Code (DNK)
The Sustainability Code is a transparency standard for reporting on sustainability performance. Companies prepare a declaration of conformity in which they disclose their sustainability strategy and measures according to specified criteria and indicators. It is an established standard in Germany that many companies already use.
Eco-Management and Audit Scheme (EMAS)
EMAS is an environmental management instrument developed by the European Union. Companies that are EMAS-certified commit themselves to continuous improvement of their environmental performance, regular reporting and independent auditing by third parties. This EMS is also actively used by many European companies.
ISO 14001
This international standard specifies requirements for an environmental management system. Companies that are certified to ISO 14001 demonstrate their ability to meet environmental commitments and continuously improve their environmental performance. The standard for EMS is very popular in Germany and can be certified by various organizations such as TÜV. It is so internationally recognized that EMAS is based on it.
B Corp Certification
This certification is awarded by the non-profit organization B Lab. It evaluates companies based on their overall social and environmental performance, transparency and accountability. B Corps are required to meet high standards of social and environmental performance. The certification is also gaining importance in Germany, especially among companies that strive for high standards of social and environmental performance.
GRI Sustainability Reporting Standards (GRI SRS)
The GRI Standards are the most widely used framework for sustainability reporting worldwide and are also used by many large German companies. They provide comprehensive guidelines for reporting on the economic, environmental and social impact of companies.
UN Global Compact
The UN Global Compact is a voluntary initiative of the United Nations that encourages companies to align their strategies and activities with ten universally recognized principles in the areas of human rights, labour standards, the environment and anti-corruption. Participants undertake to report annually on their progress. Many German companies are also signatories.
Science Based Targets (SBT)
The Science Based Targets initiative (SBTi) is an organization that supports companies in setting their own science-based climate targets and creating transition plans. It then certifies the targets and certifies that they contribute to the 1.5° target of the Paris Agreement. Although this initiative is relatively new, more and more German companies are joining today.
ZNU Standard Sustainable Management
The ZNU Standard is a German standard for sustainable management, developed by the Center for Sustainable Leadership (ZNU) at Witten/Herdecke University. It is aimed at companies that want to systematically develop and implement their sustainability strategy. It also defines specific standards for different sectors that companies should observe. Certification bodies include TÜV and DEKRA.
Economy for the common good (ECG)
The ECG has a committed following in Germany and is an alternative economic model that places the common good at the center of economic activity. Companies draw up a common good balance sheet in which they assess their social and ecological impact. The assessment is based on clearly defined criteria and indicators.
ISO 26000
ISO 26000 is a standard and provides guidelines on the social responsibility of organizations. Although it is not a certification in the traditional sense, it helps companies to understand and implement their social responsibility. It serves as a guideline for setting up your own EMS to support companies in fulfilling their responsibilities. In contrast to EMAS and ISO 14001, it also covers social and governance aspects.
ISO 50001
The ISO 50001 is an international standard for energy management systems that supports companies in improving their energy efficiency and reducing their energy consumption. It provides a systematic framework for the management and continuous improvement of energy performance. By implementing ISO 50001, companies can reduce costs and minimize their environmental impact.
EcoVadis
EcoVadis is a platform that evaluates companies worldwide based on their sustainability performance in the areas of environment, labor and human rights, ethics and sustainable procurement. It provides comprehensive ratings and detailed reports to help companies improve their CSR practices. By using EcoVadis, companies can make their sustainability performance transparent and strengthen their business relationships.
Sustainalytics
Sustainalytics rates listed companies based on their ESG performance. The assessment is based on five risk levels: negligible, low, medium, high and severe. Sustainalytics' ratings are based on a framework of 20 material ESG risk factors that are analyzed for 138 industries. These assessments are designed to provide investors and other stakeholders with an insight into the sustainable performance of companies.
CDP (Carbon Disclosure Project)
CDP is a global non-profit organization that works to encourage companies and cities to disclose their environmental impacts in order to enable more efficient management of risks, costs and opportunities. CDP was founded in London in 2000 and is now headquartered in Berlin. Every year, CDP collects data from companies and cities on their greenhouse gas emissions, water use and forest protection and publishes the results. This data is used by investors, companies and policy makers to better understand and assess risks and opportunities.
SA8000
SA8000 is both a standard and a certification norm that provides a framework for the social responsibility of companies and organizations. It was developed in 1997 by the Council on Economic Priorities Accreditation Agency (CEPAA) and is now administered by Social Accountability International (SAI). SA8000 provides requirements in the areas of working conditions, health and safety, human rights, child labor and fair pay. SA8000 certification enables companies to demonstrate that they take their social responsibility seriously and that they have a positive impact on their workers, suppliers and society.
FTSE4Good Index Series
The FTSE4Good Index Series is a series of indices created and managed by the Financial Times Stock Exchange (FTSE). The indices assess the performance of companies based on their ESG practices. The series comprises various indices developed for specific geographical regions. Investors can use these indices to select individual stocks or as a basis for investment products such as mutual funds or exchange-traded funds (ETFs). The FTSE4Good methodology is based on a scoring system that assesses the quality of a company's ESG practices.
Certified Sustainable Economics (CSE)
The CSE certification is awarded by the Institute for Sustainable Economics (IÖW) to companies and sustainability organizations so that they can demonstrate their commitment to sustainable business practices. The CSE label serves as a mark of quality for products from certified sustainable companies. The certification is based on a set of criteria that evaluate a company's performance in ethical, environmental, social and economic sustainability. The CSE standard is regularly reviewed and continuously updated to ensure that it remains relevant and effective.
Overview of other more specific certifications, standards and norms with holistic approaches
The list above already covers a wide range. However, it is also worth mentioning other industry-, process- or product-specific certifications, standards and norms that are continuously being expanded to help companies achieve their sustainability and ESG goals.
The Fair Trade Certification focuses, for example, on fair trade practices and improving the living conditions of producers and workers in developing countries. Companies that offer fair trade products demonstrate their commitment to social responsibility and ethical procurement. The Forest Stewardship Council (FSC)-standard certifies sustainable forestry. Companies that use FSC-certified products contribute to the preservation of forests and promote responsible forest management.
The LEED (Leadership in Energy and Environmental Design)-LEED certification system is recognized worldwide for environmentally friendly construction. Companies that own or operate LEED-certified buildings demonstrate their commitment to sustainability in the construction industry. The ISO 45001-This standard specifies requirements for an occupational health and safety management system. Companies that are certified in accordance with ISO 45001 demonstrate their commitment to the health and safety of their employees.
The Cradle to Cradle (C2C) Certification promotes the development of products that can be manufactured, used and fully recycled or safely returned to the environment at the end of their service life in an environmentally friendly way. C2C-certified products stand for innovation and sustainable design. For companies in the food and agricultural industries, the SAI Platform's Farm Sustainability Assessment (FSA) a comprehensive tool for sustainable agricultural practices. Companies use FSA to make their supply chains sustainable.
Finally, the ISO 9001standard for quality management systems ensures that companies consistently deliver high-quality products and services. Although it is not specifically aimed at sustainability, it contributes to the overall efficiency and accountability of a company.
The integration of additional certifications and standards can help companies to achieve their sustainability and ESG goals even more comprehensively and effectively by covering various aspects of social, environmental and economic responsibility.
Certifications, standards and norms on sustainability and ESG topics - keeping an overview
Sustainability and ESG practices are becoming increasingly important. Certifications, standards and norms play a decisive role in guiding companies. This variety of frameworks enables companies to credibly demonstrate their sustainability commitments and underline their commitment to responsible business practices.
The wide range of certifications, from global organizations such as the United Nations to national and industry-specific bodies, offers companies a wealth of opportunities to define, track and communicate their sustainability goals.
For customers, investors and other stakeholders, these certificates act as confidence-building signals that indicate that a company takes its responsibility seriously and is actively committed to a sustainable future. In addition, holistic sustainability standards offer the opportunity to optimize internal processes, leverage efficiency potential and ultimately create long-term added value for all stakeholders.
The breadth of these standards reflects the complexity and multi-faceted nature of the sustainability agenda and underlines the importance of a comprehensive, systematic and transparent approach to sustainability. Ultimately, these certifications help to shape a more sustainable economy and society in which companies play an active role in tackling global challenges.