MatchZINE – The CSRD/ESG Magazine

ESG and CSRD for Municipal Utilities: What You Should Know About Sustainability

As a municipal utility, are you facing the challenges of getting started with ESG management and having to prepare a CSRD report? We’ll give you valuable tips and show you how to find the right ESG software for your sustainability reports.

  • Dieser Artikel wurde am 20. March 2026 aktualisiert.
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ne thing is certain: the importance of Environmental, Social and Governance (ESG) is steadily increasing in the corporate world. These factors have become key indicators of success and sustainability for municipal utilities.

In this article, we compile important information and share insights from our more than 25 ESG matchings for municipal utilities of various sizes: Why should municipal utilities put ESG management and CSRD reporting obligations at the top of their agenda? And are there ESG software providers that specialize in the situation of municipal utilities? Spoiler: There are, for example, some technical solutions that, from a budget perspective, come in below a lengthy tendering process.

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CSRD / ESG for municipal utilities

CSRD / ESG for Municipal Utilities

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Pressure on municipal utilities is growing – ESG management is the solution

Hardly any topic shapes current discussions as much as sustainability. Awareness is growing day by day, and customers are already making decisions today based on companies’ level of sustainability. In the near future, this will be one of the key factors why customers choose company A and not company B.

For companies, this means: They must communicate their sustainability and social initiatives transparently. This applies even more so to municipal utilities, whether as a public-law entity or a private-sector company: There is a special responsibility toward—and a close connection with—the community in which municipal utilities operate.

Effective ESG management shows that, as a municipal utility, you take your responsibility toward society seriously and actively work for the well-being of your communities.

Absolutely crucial as to why you, as a municipal utility, should prioritize your sustainability management highly: Until now, municipal utilities have not been subject to mandatory CSR reporting. However, this is changing with the EU’s CSRD adopted in 2023. Even small and mid-sized municipal utilities must publish a management report in 2025 or 2026—and it’s best to set the course for that now. You can read more about the content and provisions of the CSRD in the next section.

In brief:

Matchilla - Matching-Plattform und Marktplatz ESG = Environmental, Social and Corporate Governance

Matchilla - Matching-Plattform und Marktplatz CSRD = Corporate Sustainability Reporting Directive

Matchilla - Matching-Plattform und Marktplatz CSR = Corporate Social Responsibility (sometimes also: Corporate Sustainability Reporting)

Further explanations of terms, standards, and abbreviations can be found in our ESG glossary.

CSRD: From when will which municipal utilities be subject to the reporting obligation?

For the 2024 financial year – reporting in 2025

Companies of public interest with more than 500 employees.

For the 2025 financial year – reporting in 2026

All other large companies under accounting law meeting two of the following three criteria:

Matchilla - Matching-Plattform und Marktplatz from 250 employees

Matchilla - Matching-Plattform und Marktplatz more than €50 million in revenue

Matchilla - Matching-Plattform und Marktplatz more than €25 million in total assets

For the 2026 financial year – reporting in 2027

All capital-market-oriented SMEs (except micro-enterprises) as well as small and non-complex credit institutions and captive insurance undertakings. Here too, two of the following three criteria apply:

Matchilla - Matching-Plattform und Marktplatz from 10 employees

Matchilla - Matching-Plattform und Marktplatz more than 700,000 euros in revenue

Matchilla - Matching-Plattform und Marktplatz more than 350,000 euros in total assets

Benefits of ESG management for municipal utilities

Does reporting feel like an annoying duty to you, or even like a threat? Do you also primarily see costs coming your way? On the other hand, there are a number of (measurable) benefits of ESG management:

Matchilla - Matching-Plattform und Marktplatz Strengthening brand image
You stand out from the competition, position yourselves as an attractive and future-proof company (not least as an attractive employer in times of skilled labor shortages!) and improve customer loyalty.

Matchilla - Matching-Plattform und Marktplatz Risk reduction and cost savings
Those who act early reduce risks and save costs in the long term that will sooner or later affect every company.

Matchilla - Matching-Plattform und Marktplatz Positioning as a local partner and provider
The consulting firm Rödl & Partner wrote on this topic back in 2021:

   “Municipal companies demonstrate in this way that they see themselves not only as providers but as service providers for the local community. For the community, municipal utilities are ultimately an important partner and role model […] Through their work, they can make a significant contribution to achieving municipal or city sustainability goals.” (Source)

We can phrase the three points a bit shorter and more punchily: Effective ESG management makes a decisive contribution to the future viability of municipal utilities.

How do you get started with ESG management and reporting? 6 steps to the report

At this point, we can’t provide you with comprehensive advice for getting started. Every company is set up too individually for that. However, we can show you a few essential steps:

Matchilla - Matching-Plattform und Marktplatz Carry out a baseline assessment
What is your status quo when it comes to ESG? Are there already people responsible? What is your level of know-how? Is there a strategy? Who are the most important stakeholders, and what are their expectations and concerns with regard to ESG?

Matchilla - Matching-Plattform und Marktplatz Set goals
What do you actually want to achieve through your ESG management? What are your KPIs? When should these goals be achieved? Make sure this is actually feasible within your structures and that the goals go hand in hand with your other corporate objectives rather than competing with them. Important: You should continuously adjust and review the goals – because the more data you collect, the more precisely you can define your goals.

Matchilla - Matching-Plattform und Marktplatz Develop the concept and define measures
Develop a concept for how you want to achieve these ESG goals, with specific steps, responsible persons, and a timeframe. And: Which standards/guidelines will you choose for reporting? You should definitely define this before you start working on the actual reporting.

Matchilla - Matching-Plattform und Marktplatz Carry out a materiality assessment
The materiality assessment is indispensable for CSRD reporting: Which topics do you need to report on at all? Please note: Under the CSRD, the double materiality assessment is mandatory! You can read more about this topic here.

Matchilla - Matching-Plattform und Marktplatz Collect data
All relevant data should be collected centrally. Avoid duplication and different systems and storage locations. We recommend that you work with a single source of truth.

Matchilla - Matching-Plattform und Marktplatz Create and publish the report
Next comes the report creation. Our tip: Don’t see the ESG report only as a legal obligation, but as an opportunity to communicate with your stakeholders in a completely new way. Avoid boring documents, make the reports clear and easy to understand, and publish them prominently on your website. You can find some very successful examples of ESG reporting here.

The right ESG and CSRD reporting software for municipal utilities

From the six steps mentioned, you can see: For ESG management and reporting, virtually no company can avoid using ESG software anymore—the datasets are too extensive and the legal requirements too demanding. Through our regular market research, we are increasingly coming across software providers that are not only relevant for large corporations, but specialize in the needs of SMEs and smaller companies. This means their portfolio fits very well with the current challenges faced by many municipal utilities.

Tools for the CSRD are designed as follows: They take into account that there is no large sustainability department. They support smaller teams with a fast onboarding process, guides, and intuitive report creation. In addition, these providers are generally on a strong growth trajectory and are specifically strengthening their teams with sustainability experts who will support you in an advisory capacity at the beginning or over a longer period of time. This usually eliminates the “overhead” of additional external ESG consulting. Of course, these experts continuously optimize their systems with regard to features and ease of use.

If you use our Match Assistant at the end of this page, we will preferentially suggest these types of ESG software to you.

Features of ESG and CSRD software

Matchilla - Matching-Plattform und Marktplatz Data collection and centralization
Sustainability software collects data and automatically analyzes it to uncover potential for improvement.

Matchilla - Matching-Plattform und Marktplatz Training and education
Especially when getting started with ESG management, software is an important aid for approaching new topics in a structured way. Many platforms offer intelligent assistants so that the know-how is passed on to you as you use the tools.

Matchilla - Matching-Plattform und Marktplatz CSRD reporting
Certainly the central function of such tools: You create your CSRD reports according to different ESRS standards (incl. task management, workflows, checking data for accuracy, external access for review). You can then export the reports into various formats – including in your corporate design, so you can publish them on your website, for example.

Matchilla - Matching-Plattform und Marktplatz Risk assessment and management
ESG software helps you identify and manage risks. This includes weaknesses in the supply chain as well as climate-related or social risks.

Matchilla - Matching-Plattform und Marktplatz Target tracking
Of course, you want to improve your sustainability performance. To verify this, you also use ESG software: you define targets and track them. There are also functions such as real-time tracking, CO2 accounting, and a hotspot analysis.

Provider comparison: ESG/CSRD software suitable for municipal utilities

As you can see from this article, at Matchilla we engage intensively with the various sustainability topics and progressively screen the provider market. This has resulted in the most comprehensive database in the German-speaking region for ESG and CSRD software as well as consulting companies – which you can now benefit from very easily.

Building on the know-how from over 700 successful ESG matchings (including more than 25 for municipal utilities), we have created an easy-to-use match assistant for you, which you can complete in just a few minutes. We match your information with our database and suggest the three providers that best fit your requirements. You can then compare the providers at your leisure on the matchboard we set up and reach your goal more efficiently. 

Our portfolio even includes three providers that offer a special product range for municipal utilities. That should be perfect input for your screening or a possible tender. 

The best part: Comparing software providers and matching on Matchilla is completely non-binding, free of charge, and anonymous vis-à-vis the providers.

If you would like to know which solution will best support you with the various tasks in the future, sign up for free on the platform or complete the following Match Assistant!

Software matching for municipal utilities – which provider is the right fit for you?

Providers in matching: 68

  • Letztes Update am 20. March 2026

Problems with the display? Open the Match Assistant in a new window here

Christian Batz - Kundenstimme Matchilla
Christian Batz VP Digital, igus AG


Matchilla’s approach is brilliant: I no longer have to laboriously research consultants and software providers and fight my way through countless comparison portals – the right providers come to me, so to speak – with just a few minutes of effort. The matching process saves us a lot of resources.

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Heiko Stötzel Global Head Social Responsibility, SSI Schäfer


Finding suitable ESG service providers is easy and super fast via Matchilla. Getting in touch, formulating specifications, and after just a few days the results were there. This way, we got information about providers we hadn’t even heard of before. A real added value.

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Alexander Barion Head of Marketing CE, Fidelity International


With Matchilla, we can easily open ourselves up to impulses from new service providers who were previously outside our radar. Our search criteria are matched against a database, but the final suggestions are in the hands of the Matchilla team. The result: high quality and strong service!

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Our sustainability expert

Ulli Theves is Head of CSRD and ESG reporting matching at Matchilla and an expert in technical solutions in the field of sustainability. For many years, he has supported various municipal utilities on a wide range of topics and shares his ESG expertise in MatchZINE.

CSRD, Lieferketten, EUDR, ESPR, PPWR, CBAM & Co. sind Themen, die alle Unternehmen betreffen. Wir teilen im MatchZINE unser geballtes Praxiswissen aus über 1.000 Matchings für Mittelständler und Konzerne.

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