Sustainability in business: Collaborating for a resilient future in times of climate change and regulatory pressure

By: Luc Lejeune, December 2023

"Sector associations have the potential to achieve collective goals where individual companies fall short."

With the year-end approaching, this is an opportune moment to reflect on a year filled with global challenges posed by climate change. Rising temperatures and sea level increases compel the world to take action, and laws and regulations exert growing pressure on businesses.

Climate Change: A Call to Action

The climate crisis has a firm grip on the planet, with an increasing frequency of ever more extreme weather conditions. The Netherlands, with its low elevation, is particularly susceptible to the consequences of the resulting rise in sea levels. It is a call to action, not only for individuals but also for businesses.

Increasing Pressure from Legislation: Local and European Efforts

International agreements such as the Paris Climate Agreement and the EU Green Deal compel governments to take robust measures. For example, the European Union's Corporate Sustainability Reporting Directive (CSRD), adopted in November 2022, has further intensified this pressure. Starting January 2024, companies (above a certain turnover) will be required to include detailed reporting in their annual reports, focusing on transparency and improved quality of sustainability information.

SMEs Embrace the Sustainability Opportunity

While sustainability is crucial, small and medium-sized enterprises (SMEs) remain hesitant. Research indicates that only a minority of SMEs in the Netherlands have made substantial investments in CO2 reduction. Industry associations can play a crucial role here.

Role of Sector Associations in Sustainability

Sector associations have the potential to achieve collective goals where individual companies fall short. Collaboration within these organizations can help companies understand where they can make an impact and how to implement sustainability in practice. In a time of growing regulatory pressure, as illustrated by the CSRD, the role of industry associations is crucial. As guides, they can help companies navigate complex sustainability goals and legislation. By acting together, sector associations can be a powerful force for positive change.

In conclusion, while climate change does not wait, it is the joint responsibility of companies and sector associations to embrace sustainability. This path leads to a resilient, circular future.

Luc Lejeune