Large Spanish companies that exceed the CSRD thresholds are already required to comply starting in fiscal year 2024, with their first report due in 2025. Medium-sized companies at the new threshold must submit their first mandatory report in 2026, covering data from fiscal year 2025. But even those not yet directly required to comply are facing growing pressure: their large customers, who are required to comply, are demanding ESG data from suppliers to include in their own supply chain reports.
For a technical-industrial company, this means that Sustainability is no longer a voluntary choice made for the sake of corporate image. It is a prerequisite for accessing customers, contracts, and financing.
What are ESG criteria, and why are they getting so much attention right now?
ESG stands for Environmental, Social, and Governance: the three pillars used to assess a company’s impact and responsibility beyond its financial results. The concept has existed since the 2000s, but it has only recently become a legal requirement. The Corporate Sustainability Reporting Directive (CSRD) places non-financial information on the same footing as financial information, requiring that data on environmental, social, and governance factors be comparable, reliable, and verified.
The reason for the change in pace is regulatory pressure from Europe, but also commercial pressure: Major industrial groups and leading construction companies already include ESG criteria in their supplier qualification processes, and that threshold will continue to extend further down the supply chain over the next few years.
Is my company required to report on sustainability?
Medium-sized unlisted companies currently have no direct legal obligation. However, they are increasingly subject to one de facto. Royal Decree 214/2025 aligns the national framework with European requirements, with a particularly significant impact on companies operating in sectors with environmental impact or that play a significant social role or are part of the supply chains of large corporations.
The Three ESG Pillars Applied to a Technical-Industrial Company
Environmental: Carbon Footprint and Energy Efficiency
The environmental pillar is the most visible and the one subject to the greatest regulatory pressure. For an industrial company, the most relevant metrics are Scope 1 emissions (direct, from its own facilities), Scope 2 emissions (indirect, resulting from the energy it consumes), and Scope 3 emissions (indirect, from its value chain). Facility energy efficiency, waste management, water consumption, and the transition to renewable energy are the indicators most frequently required by reporting frameworks.
Social: Training, Safety, and Working Conditions
The social pillar of an industrial company is measured primarily through three indicators: workplace safety (accident rate, lost days, preventive measures implemented), employment conditions (wage gap, types of contracts, turnover), and the investment in training and team development. Companies that can demonstrate a positive trend in these indicators have a real advantage both in attracting talent and in their relationships with customers and investors.
Governance: Transparency and Risk Management
Governance assesses how decisions are made within the company, how conflicts of interest are managed, what internal control mechanisms are in place, and how sensitive information is handled. For an industrial company, this includes ethics in the supply chain, anti-corruption protocols, and, increasingly, governance regarding the use of artificial intelligence.
How to Start Applying ESG Criteria Without a Dedicated Sustainability Department
Most industrial companies that have no immediate legal obligation to report on ESG do not have a dedicated team. And that’s not necessary to take the first steps. The starting point is an assessment: understanding where the company stands on each of the three pillars, what data is already collected as part of normal operations (energy consumption, accidents, training hours), and what data needs to be systematically tracked.
From there, the key is prioritization: you can’t improve everything at once, but you can decide which metrics will have the greatest impact on your relationship with priority customers and address those first. The self-assessment at the beginning of this article can be a concrete first step.
The Role of Team Building in Your Company's ESG Strategy
An ESG strategy that doesn't reach the technical teams isn't a strategy—it's just a document. Training in sustainability, energy efficiency, workplace safety, and corporate ethics is an integral part of any credible ESG policy, It is also one of the indicators that reporting frameworks such as the ESRS require to be substantiated with concrete data.
