ESG as a management system, not an annual report
The most widespread error in ESG adoption is treating it as an annual reporting exercise rather than as a continuous management system. Companies that publish a sustainability report elaborated over three months by a communications team, but that don't have ESG data integrated into their day-to-day operational decisions, are fulfilling the form without capturing the substance.
The European CSRD Directive establishes double materiality standards: not just the impact of climate on the company, but the impact of the company on climate and society. Mature ESG management systems integrate indicators into operational dashboards and have quarterly internal audit processes. It's no different from how you manage your P&L — it just requires the same discipline applied to non-financial variables.