ESG in a B2B-context:

how do you deal with this as a business?

Everyone is talking about sustainability and responsible business practices. Companies are consequently being judged increasingly based on their efforts regarding ESG.

 

Since the beginning of 2024, larger companies have to be transparent about the impact their activities have on the environment and society. They moreover rely on the efforts of all their suppliers to help achieve their ambitions. Although mandatory reporting is not yet required for SMEs, they too are now involved in the sustainability drive.

What does ESG stand for?

 

ESG stands for ‘Environmental, Social & Governance’

(a set of standards used to measure the impact of a business on the environment, society and good governance).

1

Environment

To what extent does the company play a role in addressing challenges concerning waste, pollution, greenhouse gases, deforestation, and climate change?

2

Society 

How does a company treat its people in terms of diversity, equal opportunities, remuneration, training, working conditions, etc.?

3

Good governance

Is the company governed effectively in terms of e.g. stakeholder remuneration, structure, fraud prevention, etc.

Companies naturally highlight their positive initiatives through their own communications. Just as with the financial assessment of potential business partners, we also advise you here to check the sometimes biased information against objective data from other reliable sources.

Transparent ESG reporting is now a new reality for all companies. Roularta Media Group, of which Trends Business Information is a part, includes its commitment to various Sustainable Development Goals (SDGs) and the results of its sustainability efforts in its annual report.

The importance of ESG in the value chain

 

ESG is playing an increasingly significant role in establishing and maintaining business relationships. When considering two potential suppliers with the same solvency, the one with a better ESG score is more likely to close the deal. Companies realise that their ESG reputation depends also on how well their suppliers perform in terms of sustainability. Hence, we advise you to get as thorough and objective information as possible in advance.

Anyone who wants to establish a business relationship with a company needs to know and monitor its behaviour over time. This is important when talking about the risks of financial or technical failure. These risks are precisely what make assessing companies’ ESG behaviour so essential. However, it is not easy to find reliable, stable and sustainable indicators to make this assessment.

Trends Business Information has evaluated the available indicators and created a development plan to help you assess ESG behaviour and its evolution for companies in the country.

The first part of this plan analyses social behaviour.

Employers publish a social balance sheet with their financial statements. We have compiled more than 80 ratios, 11 of which give a clear picture of how companies’ social performance is evolving. Initially, we will bring these 11 ratios together.

What ESG insights does Trends Business Information offer?

 

You can see how well a company is meeting its ESG obligations through the ESG indicator. You can compare it to our score that indicates how creditworthy a company is.

 

You can get an overview of sustainability efforts, including ratios based on social balance, electrification of vehicle fleets, installation of solar panels, sustainability labels, and more, thanks to detailed ESG insights from official and exclusive sources.

 

Curious as to what insights we already have on your business relationships?

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Further information and documentation on ESG: