European Union’s Corporate Sustainability Reporting Directive requires many companies to provide detailed information on their environmental, social and governance activities. ESG provides the framework for assessing and managing these impacts.
Digital and paperless solutions help companies achieve ESG objectives while saving time, energy, and resources. Environmental sustainability and digital waste reduction are also part of an ESG strategy.
We explain why sustainable development and ESG are important, and how taking small steps – like reducing digital waste and using smarter technologies – can help make a meaningful impact.
In this article
The Importance of Sustainable Development
The reason why responsible and sustainable development is important for companies is that, as a society, we are facing a sustainability crisis. According to scientists, Earth’s ecological boundaries have been exceeded, and our activities continuously cause environmental damage. Such problems also pose risks to human and business activities. In the long term, climate and environmental risks are significant issues because damaged natural processes cannot be easily restored.
Following sustainability principles can therefore bring several benefits to companies.
Advantages of a sustainable company include:
- Meeting societal expectations,
- Higher employee satisfaction,
- Greater attractiveness to investors and banks, as an ESG strategy prepares the company for potential risks and stabilises it against market fluctuations,
- Increasing sustainability considerations throughout the supply chain,
- Reducing business risks through climate risk management,
- Better preparedness for regulatory pressures related to sustainability,
- Cost savings through sustainable solutions,
- Increased asset value (competitive advantage, building renovations, risk management, technological upgrades, motivated employees),
- Greater opportunity to introduce sustainable products or business models (subscription-based production, renting, innovative product design, shorter supply chains, lower-carbon materials/products/services),
- Enhanced competitive advantage by adapting to climate challenges and maintaining competitiveness.
ESG meaning
ESG provides companies and investors with measurable criteria to evaluate how a company operates responsibly and sustainably.
ESG is a corporate governance concept through which a company manages the impact of its processes on the natural environment, people, and society at large. Environmental aspects focus on issues such as climate change mitigation, resource usage, pollution reduction, and ecosystem protection. Social aspects assess employee rights and well-being, diversity, inclusion, and broader impacts on communities and consumers. Governance aspects monitor transparency, business ethics, risk management, anti-corruption measures, and data protection. ESG principles are described in detail in the European Sustainability Reporting Standards (ESRS).
ESG principles are not a universal rulebook; companies can focus on the areas most relevant to their operations and impact. This allows a company to define priorities, assess impacts, risks, and opportunities, and set goals aligned with its business activities, customer expectations, and societal influences.
Companies that follow ESG principles are considered responsible because their activities are based on sustainable development, which accounts for the needs of the current generation without compromising the ability of future generations to meet their own needs.
Who Has ESG Reporting Obligations?
The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that defines requirements related to sustainability reporting and obliges many companies to report on their environmental, social, and governance (ESG) activities. The type of data that must be disclosed and the methodology for ESG reporting are defined in the European Sustainability Reporting Standards (ESRS).
Approximately 0.2% of EU companies will have mandatory ESG reporting obligations, but their turnover represents half of all EU business activity. For others, a voluntary disclosure framework applies, allowing companies to provide comparable data to large clients and financial institutions if needed. Every effort counts, and all organisations, regardless of size or reporting obligation, should contribute to a more environmentally friendly world.
Digital Waste
In the context of corporate sustainability, digital data is an important area, as inefficient management can lead to the accumulation of digital waste – files, emails, and applications that consume resources, increase energy usage, and contribute to a company’s environmental footprint.
What is digital waste?
Digital waste consists of data that has no added value at either the individual or organisational level. It includes one-time-use, duplicate, or forgotten files, applications, and emails that burden devices and require resources to store. Digital waste is as real as any other type of waste – every file requires server space and energy, increasing the ecological footprint. Poor digital organisation creates confusion and wastes time. Digital waste includes:
- Unnecessary information,
- Redundant files and programs,
- Old data that disrupts daily work,
- Duplicate or unnecessary photos and videos,
- Large amounts of web browser data (cookies),
- Unused accounts,
- Unnecessary advertisements,
- Old WiFi networks.
In accounting, digital waste may include unissued invoices, duplicate files, or old documents no longer required for retention. Digital waste can also include reporting files replaced by approved reports or other work files that are no longer used. By law, final and required accounting source documents must be retained; temporary drafts, duplicates, or working versions generally do not need to be kept.
Research shows that digital waste consumes more time and money than expected. 90% of stored data becomes unused within three months, an average of 16 minutes is spent per email, €1,646 per employee per year is spent on unnecessary emails, and €1,143 on managing spam.
Digital waste accumulates quietly but steadily. Problems usually appear when technical failures occur or data retrieval becomes difficult. Digital waste is not just a personal inconvenience; it is a problem affecting the environment and device performance. The ICT sector already produces over 5% of global carbon emissions, much of it from data centers storing our digital content. Without change, data centers could consume up to one-fifth of the world’s electricity in the coming years.
Importance of Digital Cleanup
Although digital waste may seem harmless, it has negative consequences for personal well-being and the environment. Digital waste consumes energy at every step – not only when stored, but also when searched, maintained, or used (e.g., opening, sharing, processing files).
It directly affects device and system performance. Overloaded computers and phones slow down, file searches become difficult, and the risk of losing important information increases. Old and unused apps or accounts may pose a security risk, as they may contain personal data or be accessible to malicious actors. A tidy digital space also improves mental clarity and focus. Just as we feel better in a clean physical environment, removing digital waste reduces information noise and smooths daily work.
Digital waste also affects the environment. Every file we store or share – emails, documents, or photos – is stored on servers and in data centers, which consume constant electricity and require cooling, increasing CO₂ emissions. Cleaning digital waste is thus a responsible action for a better environment.
How to Clean and Reduce Digital Waste
There is no single “right time” to clean digital waste; the key is to find a method that fits your work habits. Some people organise files immediately and delete unnecessary items; emails can also be sorted upon receipt. This prevents digital waste from accumulating and reduces cleanup time.
Digital cleanup can be performed a few times a year, similar to spring or autumn cleaning, optionally together with colleagues. International campaigns like Digital Cleanup Day also promote this practice.
Tips to reduce digital waste:
- Regularly sort videos and photos, keeping only the best,
- Create a logical folder structure and save documents in the correct location immediately; delete unnecessary files, starting with large ones,
- Use cloud solutions in companies to prevent individual employees from saving duplicate files on multiple devices and emailing them around,
- Manage your email inbox by deleting unnecessary messages and sorting saved emails into folders, unsubscribe from unneeded newsletters,
- Delete old accounts and unused email addresses,
- Remove programs and apps no longer needed,
- Clean up downloaded files and empty trash bins,
- Organise desktop files logically,
- Clear browser cache and cookies if websites malfunction, avoid opening many tabs at once,
- Minimise search engine queries by using direct addresses or bookmarks,
- Be mindful of file sizes when saving and sharing photos or videos.
In accounting, digital cleanup should be performed regularly, especially after a fiscal period ends and data is finalised. Only approved documents for archiving should be kept, and drafts deleted. Consistently saving final documents in a single location helps prevent unnecessary duplicates.
Awareness and prevention are also key: consider carefully which files you create, save, and download.
Invoices and Sustainable Development
The use of e-invoices is an important step toward environmentally sustainable, responsible, and efficient business operations. In the ESG context, e-invoices reduce environmental impact, increase transparency, and improve workflow, supporting sustainable development.
Traditional paper and PDF invoices generate both physical and digital waste. Paper invoices consume resources (paper, water, chemicals, fuel) and energy at every stage – production, postage, storage, and transport. PDF invoices generate more digital waste, with larger data volumes and duplicate copies increasing data center energy consumption and carbon footprint.
E-invoices are the most environmentally friendly invoice type, reducing paper, energy, and fuel consumption, as well as CO₂ emissions. According to Swiss e-invoice operator analysis, e-invoices reduce greenhouse gas emissions by an average of 89% compared to paper invoices and 33% compared to PDF invoices. Digital archiving further reduces the need for physical storage and energy use for lighting and heating.
Socially, e-invoices increase transparency and trust among business partners, reducing errors and fraud risk. Automated processes reduce manual errors and routine work, allowing employees to focus on value-added tasks.
From a governance perspective, e-invoices help automate accounting, increase control and traceability, and prevent corruption. Digital channels ensure safe, traceable invoice flow, enabling real-time data for informed decision-making. E-invoices improve partner communication by enabling fast, accurate, and clear information flow, reducing misunderstandings and repetitive explanations. Financial data security is enhanced, and invoice fraud risk is reduced.
E-invoices are a technical solution that supports ESG compliance, saves resources, improves transparency, and strengthens internal and external relationships.
Finbite Supports Corporate Sustainability and Development
Increasingly, consumers, business partners, and investors consciously consider ecological footprints and prefer to cooperate with companies investing in sustainable development.
Do you want your company to be competitive, reliable, and ready for the future? Assess your impact and values, set sustainability goals, develop an ESG strategy, and adopt responsible and environmentally friendly solutions. One important area is reducing digital waste.
Join Finbite to stand out as a responsible company, contribute to the environment, increase employee satisfaction, and improve management efficiency. Reduce invoice-related digital waste by implementing e-invoices. Sending, receiving, approving, and archiving e-invoices digitally helps reduce digital waste, accelerate workflows, and save costs. In addition to e-invoices, accounting can be simplified with digitisation, e-expense reports, automated reminders, and other solutions.
