This is why you get questions about your sustainability reporting

This is requested by clients due to (changing) legislation   

Under the EU Green Deal, the package of policy initiatives aimed at becoming climate neutral by 2050, many large companies are required by legislation to report on their sustainability targets and impacts. This data ranges from CO2 emissions to the male-female ratio in the workforce. To comply with this legislation as a company, it is important to map the impact of the entire chain. So this includes all suppliers and producers a company works with.  

SMEs should also pay attention: one of the big companies you provide products or services to may come to you with a request, even though you yourself do not have to comply with the legislation. Companies do this to map out their impact and business activities as completely as possible. Large companies covered by the legislation have 1000+ employees, an annual turnover of 50 million and a balance sheet total of 25 million. Although recent updates via the Omnibus package require fewer companies to report directly, the impact remains significant. 

If you supply directly to companies required to report under the CSRD, they will need sustainability data from you for their own reporting. It is estimated that between 24,000 and 135,000 Dutch suppliers have to provide sustainability information to their customers, even if they are not directly required to report themselves. The most common questions you can expect  to ask are about:  

• Emissions of CO2 and other greenhouse gases 

• Circular operations: material use and waste 

• Employee health and safety 

• Salary, gender equality and training opportunities 

Customers are becoming more demanding. This is what they ask of you  

Where price, quality and delivery time used to be the main focus, customers are now increasingly asking about the sustainability of your products and operations. Sustainability is no longer a nice-to-have, but a hard requirement in many sectors. For example, you might encounter the following questions and expectations: 

• B2B clients are increasingly asking for concrete sustainability data in tenders and procurement processes. They no longer judge suppliers solely on price and quality, but also on sustainable business practices 

• Big companies are increasingly including suppliers in their own sustainability goals and thus setting stricter requirements 

Consumers are making increasingly conscious choices, so your B2B customers are passing on those sustainability expectations to you as a supplier.  

Investors and financiers are becoming more critical. This is what they ask of you  

Banks and investors today look beyond financial figures. They see sustainability as an indicator of your company's future-proofing and innovativeness, which directly affects your financing options. The questions you can expect, for example, are about: 

• What sustainability criteria do you use in your operations? 

• Can you provide insight into your carbon emissions, energy consumption or other environmental performance?  

• Do you have a sustainability strategy or plan for the coming years? 

• Do you already report according to standards such as CSRD or other ESG guidelines? 

• Are there any certifications or audits showing how sustainably you operate? 

This is what current and future employees ask of you  

• Sustainability also makes a difference when it comes to attracting and retaining staff. In a tight labour market, employees are increasingly choosing companies that are socially responsible. Younger generations in particular want to work for a company that contributes to solutions instead of problems. A clear sustainability profile thus becomes an important part of your employer brand.  Employees stay longer at companies that are socially responsible. They want to know: Clear sustainability ambitions and concrete goals within the organisation. How does the company contribute to social and environmental problems? 

• Employee satisfaction is higher at companies that demonstrably contribute to sustainability. What initiatives are in place for a sustainable working environment? 

This is what happens when you don't address sustainability with your business 

The cost of doing nothing gets higher every year. Besides possible loss of customers and talent, you also risk fines and compliance problems at a later stage when legislation is extended.... In some sectors, sustainability is already so well-established that unsustainable companies are simply denied access to certain markets. 

• Reputation damage due to lack of transparency on sustainability 

• Legislation gets tougher, those who don't start early are behind the times 

• Access to certain markets may be restricted without proper sustainability credentials 

• Customers can switch to competitors that perform better on sustainability 

This is what happens when you do tackle sustainability in your business 

Companies at the forefront of sustainability create a long-term competitive advantage. Not only do they win new customers, but they can also achieve higher margins and are seen as more innovative. This translates directly into market share and profitability. Summing up: 

• Competitors at the forefront of sustainability win market share 

• Tenders and tenders increasingly contain sustainability requirements 

• Cooperation in the chain is more strongly influenced by sustainability performance 

• With equal price and quality, durability performance is the deciding factor