The importance of sustainability in our society
In today’s business world, sustainability is no longer an optional consideration, but an essential component of corporate responsibility. Both for a small company, but certainly for larger companies and listed SMEs.
At Prevom, we understand the importance of sustainability reporting and how it can serve as a powerful tool for communicating transparently with your stakeholders.
Why set up sustainability reporting?
The preparation of sustainability reports is becoming increasingly important. It is not only a way to show your commitment to sustainability, but also to communicate and report to your stakeholders in an efficient and transparent way. In summary, three pillars (people-planet-prosperity): doing good for people, doing good for the environment and good governance. A properly crafted report can build trust, reduce risk, and reveal new opportunities in the market.
Our areas of expertise
CSDR – Corporate Sustainability Reporting Directive:
The CSDR is an important guideline that helps companies prepare their sustainability reports. At Prevom, we can guide you in understanding and implementing CSDR requirements so that your reporting meets the highest standards.
CO2 Performance Ladder:
This is an instrument that helps companies reduce their CO2 emissions. Our experts can help you understand the levels of the ladder and how you can climb to achieve your sustainability goals.
Carbon Footprint:
These scopes provide insight into the different sources of CO2 emissions within your organisation. From direct emissions (Scope 1) to indirect emissions via electricity (Scope 2) and other indirect emissions (Scope 3). We can help you identify and measure these emissions and develop strategies to reduce them.
Rating bureau Ecovadis:
Ecovadis offers ratings that assess the environmental & people-oriented performance of companies. Our team can help you improve your Ecovadis score by implementing targeted strategies and actions.
Let Prevom guide you
Whether you are just starting your sustainability journey or are well advanced, Prevom is ready to support you. Our team of experts can guide you every step of the way, from preparing reports to implementing sustainable strategies. Contact us today and take the next step in your sustainability journey.
The aim of an environmental scan is to identify possible environmental consequences, such as pollution of water, air or soil, and to see how these consequences can be minimised or prevented.
During an environmental scan, various aspects are examined, such as energy consumption, waste production, use of raw materials and emissions of harmful substances. The result of the scan helps companies or organisations to make environmentally friendly choices, comply with laws and regulations and contribute to sustainability. In summary, an environmental scan provides insight into the ecological footprint of an activity and suggests measures to reduce negative impacts.
During an environmental scan, various aspects are examined, such as energy consumption, waste production, use of raw materials and emissions of harmful substances. The result of the scan helps companies or organisations to make environmentally friendly choices, comply with laws and regulations and contribute to sustainability. In summary, an environmental scan provides insight into the ecological footprint of an activity and suggests measures to reduce negative impacts.
Frequently asked questions (FAQ)
What is sustainability reporting?
Sustainability reporting is the process by which a company discloses its environmental, social responsibility and governance (ESG) performance. The purpose of the report is to be transparent about the impact of the company’s activities on people and the living environment, and to show the strategies that the company uses to do business in a sustainable and socially responsible way (CSR).
Is sustainability reporting mandatory?
The new European directive CSRD (Corporate Sustainability Reporting Directive) requires the largest companies to start sustainability reporting from 2024. Systematically, the obligation is being extended to smaller companies. The following overview shows which companies will have to report from when onward.
- Listed companies and financial institutions with more than 500 employees report in 2025 for the year 2024
- Other large companies exceeding at least 2 of the 3 criteria will report in 2026 on the year 2025
- 250 employees
- €25 million balance sheet total
- €50 million net turnover
- Listed SMEs report in 2027 for the year 2026
Note that even non-reporting companies may still have obligations. This is because partners who do fall under the directive can impose requirements and require you to prepare a sustainability report. As a supplier to a large company, for example, you must be able to provide sufficient and accurate data. So it is also best for small companies to take this into account.
What are the benefits of sustainability reporting?
Sustainability reporting can feel like yet another obligation, but it can also bring some benefits to your business. In fact, a properly prepared report offers several benefits, including:
- Increased transparency and trust among customers, investors and other stakeholders.
- Improved access to capital by investors looking for companies with strong ESG performance.
- Risk management by understanding the impact of environmental issues and social challenges on business operations.
- Improved reputation and competitive advantage by demonstrating that the organisation takes sustainability seriously.
- Driving operational efficiency and cost savings by integrating sustainability into business processes.
What should a sustainability report contain?
The necessary content to comply with the CSRD is defined in the ESRS standards. Besides general information, a sustainability report must contain specific information on an organisation’s themes of environmental impact, social responsibility, and governance practices. Those themes are further divided into sub-themes:
- Environmental aspects: energy consumption, CO2 emissions, waste management, and water use.
- Social responsibility: working conditions, diversity and inclusion, community involvement, and human rights.
- Governance: business ethics, transparency, board composition, and regulatory compliance.
How do I start preparing a sustainability report?
When preparing a sustainability report, you can follow the following steps:
- Assess your impact: start with a materiality analysis to identify the key sustainability topics relevant to your organisation and stakeholders. In doing so, be sure to conduct a stakeholder survey and analyse risks and opportunities internally.
- Collect data: collect data on your company’s environmental performance, social impact and governance practices.
- Set targets: define clear sustainability goals and outline the steps your company is taking to achieve them.
What is the difference between a sustainability report and an ESG report?
A sustainability report and an ESG report both focus on environmental, social and governance issues, but the difference lies in the emphasis.
- Sustainability reports are broader and often also focus on the organisation’s social impact and ethical responsibility, in addition to traditional financial results.
- ESG reports focus more specifically on measurable performance indicators for environment, social responsibility, and governance, and are often used by investors to assess an organisation’s risk and value.
What is a materiality analysis?
A materiality analysis is the process by which an organisation identifies the sustainability topics that are most relevant to its operations and its stakeholders. This helps companies focus their reporting on the areas where they have the most impact, such as carbon emissions, working conditions, or energy consumption. Through this analysis, companies know which topics should be prioritised in their sustainability strategy and reporting.
Which standards can be used for sustainability reporting?
There are several international standards and frameworks that companies can use for their sustainability reporting. The most common are:
- Global Reporting Initiative (GRI): a widely used standard that helps organisations report their impact on the economy, the environment, and society.
- Sustainability Accounting Standards Board (SASB): focuses on financial materiality and provides sector-specific guidance on sustainability performance.
- Task Force on Climate-related Financial Disclosures (TCFD): focuses specifically on the financial impact of climate change.
- UN Sustainable Development Goals (SDGs): are often used as a reference for aligning sustainability performance with global targets.
- Science Based Targets initiative (SBTi): companies that join SBTi are committed to reducing their greenhouse gas emissions in a science-based way. The targets used are based on the Paris Agreement and is thus in line with limiting global warming to 1.5°C.
How can I measure sustainability performance for my reporting?
Measuring sustainability performance can be done through various key performance indicators (KPIs) covering environmental, social and governance issues. These indicators should be comparable and are best designed with potential growth of the company in mind. For example, a company’s total carbon emissions may increase year-on-year, while actually falling relatively, say per unit produced. Examples include:
- CO2 emissions per good or service produced (environmental)
- Number of training hours per employee (social)
- Number of workplace accidents per full-time equivalent per year (social)
- Number of compliance incidents or fines for regulatory violations (governance)
- Average score in customer satisfaction survey (general)
How often should a sustainability report be published?
A sustainability report is published annually along with a company’s annual financial report. This provides a regular update on progress towards sustainability objectives and gives external stakeholders an up-to-date picture of the organisation’s environmental, social responsibility and governance performance.
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