Why ESG criteria help determine the success of restructurings
Anyone planning a restructuring today cannot ignore ESG. ESG stands for Environmental, Social and Governance. Legal requirements such as the Corporate Sustainability Reporting Directive (CSRD) make sustainability reports mandatory for thousands of companies in the EU1. The obligations apply between 2024 and 20282 , depending on the size of the company. Violations can not only result in fines, but also cost the trust of investors and customers. At the same time, banks and business partners are taking an increasingly close look at how seriously companies are taking the issue3.
In his latest video, Andreas Lau, Managing Director of HANSE Interim, points out why sustainability is not only an obligation, but can also be a lever for future-proof business models and financing advantages.
This article goes into more detail on the most important points, provides current figures and shows where CROs (Chief Restructuring Officers) and interim managers can make a decisive contribution.
Facts that count
- The CSRD obligation affects around 50,000 companies in the EU, from large listed companies to certain SMEs.
- With the quick fix in July 2025, the EU eased requirements for smaller companies and adjusted deadlines without removing the basic obligation.
- The omnibus package, currently under discussion, proposes limiting the reporting obligation to companies with more than 1,000 employees.
- 86% of large companies already publish sustainability information3. The proportion has risen significantly since 2022.
- The main hurdles to implementation are data quality, transparency in the supply chain and integration into existing IT systems.
- Banks grant sustainability-linked loans (loans with an interest rate advantage if certain sustainability targets are achieved). The global volume in 2024 was around 907 billion euros.
- The EBA (European Banking Authority) has issued guidelines in 2025 that make it mandatory to integrate ESG risks into credit processes, stress tests and corporate governance.
This data shows: Sustainability has long been more than just an image issue. It has a direct impact on market opportunities, cost structure and financing.
Where CROs and interim managers make an impact
A restructuring plan that integrates sustainability is on the safe side from a regulatory perspective and can create economic benefits. Five particularly effective levers can be derived from practical experience:
- Portfolio review for future viability
Systematically evaluate business areas according to ESG criteria: Which products meet future market and regulatory requirements? Where are CO₂ costs, supply chain problems or reputational risks looming? - Reduce opex (operating costs) through efficiency measures
Energy and resource efficiency not only reduces CO₂ emissions, but also ongoing costs, often with a short payback period. - Manage capex (investment expenditure) in a targeted, ESG-oriented manner
Align investment budgets so that they simultaneously support value enhancement and sustainability goals, for example modernizing production facilities or switching to renewable energies. - Use financing advantages
Integrate sustainability-linked loans or green bonds (bonds whose issue proceeds flow into sustainable projects) into the financial plan in order to secure more favorable conditions. - Establish ESG reporting as a management tool
Create structures at an early stage to collect reliable ESG data. This increases transparency towards investors and banks and strengthens internal management.
Practical example: ESG as a game changer in a turnaround
A medium-sized mechanical engineering company with 250 employees and a turnover of 45 million euros faced a double challenge at the beginning of 2024: rising energy costs and the impending loss of a major customer who only wanted to work with ESG-compliant suppliers.
An interim CRO from the HANSE interim network took charge of the restructuring. He implemented three core measures in the first 100 days:
- Energy audit and immediate measures
Replacing inefficient drives and optimizing compressed air systems reduced electricity consumption by 18% - ESG-compliant supply chain management
Introduction of a supplier assessment based on ESG criteria, which enabled the major customer at risk to be retained. - Securing a financing advantage
Negotiation of a sustainability-linked loan with the house bank. The agreed interest discount on achieving the CO₂ reduction targets reduced the annual financing costs by around 70,000 euros.
After twelve months, the company was profitable again, had stabilized important customer relationships and opened up new markets in which ESG standards are a prerequisite for participating in tenders.
The 100-day management roadmap from practice helped
Analysis and prioritization
Days 1-30:
- ESG risk analysis of the business model, value chain and financial structure.
- Collection of existing data and identification of gaps in ESG reporting.
- Stakeholder mapping (systematic recording of the expectations of customers, investors, banks and authorities).
Action plan and quick wins
Days 31-60:
- Definition of clear ESG KPIs such as CO₂ reduction, recycling rate or supply chain compliance.
- Launching immediate measures with a rapid impact, such as energy efficiency or waste reduction.
- Discussions with financing partners about sustainability-linked loans or subsidies.
Implementation and integration
Days 61-90:
- Anchoring ESG measures in the budget, investment planning and restructuring plan.
- Introduction of an ESG reporting system that is audit-proof and CSRD-compliant.
- Training of managers and key personnel on ESG responsibilities.
Review and communication
Preparation for next cycle:
- First KPI measurement and comparison with targets.
- Communication of progress to internal and external stakeholders.
- Fine-tuning of the strategy and preparation for the next reporting cycle.
Conclusion
Sustainability is no longer an appendage. It is mandatory, it is economically relevant and it can be the decisive lever in restructurings. Integrating ESG into the restructuring strategy from the outset not only fulfills legal requirements, but also improves financing opportunities, customer loyalty and the future viability of the business model.
With best regards
Your HANSE Interim Management
Andreas Lau
