In our article Have you started work on the sustainability report yet? We will be discussing the forthcoming requirements relating to sustainability reporting. These rules will apply to large (audit-subject) companies from the 2025 financial year onwards.
Selling point
Of course, many SME business owners already use their company’s sustainability as a selling point, but other business owners will also need to prepare for questions about their sustainability. This is because the new reporting rules for large companies will start to trickle down through the entire supply chains well before 2025, meaning that small and medium-sized enterprises (SMEs) too – for example, during the tendering process – will be faced with the question: “What is your company doing to promote sustainability?“. By working with sustainable partners, companies also help to underpin their own sustainability. The extent to which a supplier’s business is sustainable can be an important factor in deciding to whom a contract is awarded.”.
What is sustainability?
Sustainability can involve insulating a building, installing solar panels, driving electric (lorries), reducing paper consumption or using electrically powered machinery. But sustainability encompasses much more than that. The United Nations has set out 17 sustainability targets (Sustainable Development Goals, SDGs), which have been set out in 169 specific sustainability targets. Sustainability can, for example, also relate to human resources (policy), social engagement, combating waste, and so on.
Greenwashing
Of course, companies must avoid presenting themselves as more sustainable (greener) than they actually are (greenwashing). Every sustainability claim must be backed up by concrete evidence.