No visibility into your sustainability: these are the risks

Without sustainability insight, you not only miss out on opportunities, you also expose your business to risks that are difficult to fix once things go wrong. Below, we list the top ten risks. Recognisable for any business that is in doubt today or tomorrow will be too late. 

No sustainability insight? These are the risks

1. Legal risks and penalties 

The rules around sustainability are getting stricter. Can't substantiate your performance? Then you can count on sanctions. Think fines for not complying with CSRD or chain responsibility, or losing tenders and business contracts. Often the costs add up because you have to comply ad hoc afterwards - an expensive and stressful way of compliance. 

2. Financial thresholds 

Banks, investors and subsidy providers are looking more and more critically at sustainability. Companies without an ESG policy or sustainability strategy are more likely to get "no" on financing requests, pay higher interest rates or miss out on attractive subsidies. Your company valuation may also be lower if your future sustainability is uncertain. 

3. Loss of customers and chain position 

More and more large companies are demanding transparency and certification from their suppliers. Can't meet them? Then you run the risk of being excluded from the chain. Customers actively look for more sustainable alternatives and access to new markets becomes difficult if you cannot demonstrate the sustainability requirements. 

4. Unanticipated cost increases 

Without understanding your sustainability, you are less prepared for external shocks. Think of sudden carbon taxes, rising energy costs or scarcity of raw materials. You remain dependent on suppliers who themselves do not work sustainably either - and therefore vulnerable to price fluctuations and supply problems. 

5. Reputation damage and greenwashing risk 

Saying you are sustainable is not enough. Without substantiation, you make yourself vulnerable to criticism, accusations of greenwashing and negative media coverage. You lose the trust of consumers, partners and employees alike. As Marc Roodhuyzen de Vries (CEO Nexio Projects) states, "There have been countless cases where brands have been challenged on unsubstantiated claims - from large US delivery platforms to fast-fashion brands claiming to be 'conscious'." 

6. Lack of innovation 

Those who neglect sustainability also miss the engine for innovation. You miss opportunities for circular business models, lag behind changing consumer demand and often have to catch up when regulations intervene. Companies that shift gears too late lose their competitive advantage. 

7. More difficult to attract and retain staff 

For young talent, sustainability is often not an afterthought, but a prerequisite. Companies that do not have a clear vision or goals in this regard are less attractive as an employer. This is reflected in a higher outflow, less engagement and a difficult search for new people who fit in. 

8. Diminishing customer loyalty 

Customers want to know where their products come from and under what conditions they were made. If you cannot provide clarity on this, it is easy for customers to switch to a party that is transparent and sustainable. Without a clear proposition, you not only lose customers, but also the trust needed to build new relationships. 

9. Increasing social pressure 

Consumers, NGOs and governments have increasingly stringent requirements. Without a policy, you are an easy target for public criticism, activist campaigns or reputational damage. And when the rules change, you suddenly have to regulate a lot in a short time - under high pressure and without preparation. 

10. Structurally lagging behind the competition 

Perhaps the biggest risk: companies that ignore sustainability do not build a lead. They lose market share to frontrunners, are less agile when the rules change, and miss growth opportunities in markets that do commit to sustainability. In an economy that is becoming ever greener, standing still quickly becomes going backwards. 

In nu? 

Without sustainability insight, business becomes a gamble - with greater risks, higher costs and less grip on your future. Companies that keep waiting are falling behind on more and more fronts. While understanding sustainability gives you the tools to steer smarter, plan better and position yourself more strongly.