ESG 2026: From Obligation to ESG Performance in Markets

ESG as a strategic competitive factor

Authors Robert Minge and Dr. Reinhold Achatz show how the originally values‑driven concept of sustainable business, shaped by extensive EU regulations, has turned into a heavily reporting‑driven compliance exercise. At the same time, they emphasize that by 2026 ESG will become a central competitive issue: companies that consistently link sustainability with their portfolio, value creation, and organization strengthen their market position and secure their long‑term business success.

From regulatory pressure to a performance logic

The core of the analysis is a critique of excessive regulation. From the authors’ perspective, EU requirements such as CSRD and CSDDD focus too heavily on reporting and too little on the real information and innovation needs of companies.

Instead of detailed prescriptions, what is needed are clear targets aligned with the six criteria of the EU Taxonomy and a consistent focus on the entire product life cycle – including Scope 3 emissions in the supply chain, use phase, and recycling.

Levers: Digital Product Passport, innovation, and M&A

Minge and Achatz describe the Digital Product Passport as a central enabler that standardizes data exchange across the life cycle, automates processes, and can reduce IT costs. At the operational level, they highlight electrification, the circular economy, the use of recycled materials, and life‑cycle‑extending services such as inspection and predictive maintenance as effective decarbonization approaches.

Innovation and M&A are viewed as key to developing or acquiring sustainable products more quickly, while an innovation‑friendly culture, digital prototypes, approachable leadership, and lived market intelligence ensure profitable scaling.

Financing, funding programs, and digital tools

Looking ahead to 2026, the authors point to attractive national and EU‑wide funding programs, for example for the use of industrial waste heat under the “EU InnovFund 2025 Pilot Heat Auction.” Such instruments can make replacement investments economically viable, reduce CO₂, and support ESG targets.

In conclusion, Minge and Achatz underline that digital technologies – especially AI – are not at odds with ESG but are instead a prerequisite for combining environmental, social, and governance goals with business performance. When implemented correctly, sustainability thus remains a lasting driver of success.