Recently, we partnered with Siemon to host a presentation and roundtable discussion on a highly relevant topic: the impact of ESG (Environmental, Social & Governance), CSRD (Corporate Sustainability Reporting Directive), and SBTi (Science Based Targets initiative) on our sector.
What's happening?
European regulations around sustainability reporting are evolving rapidly. Since 2024, large companies are required to report on their sustainability efforts under the CSRD. In the coming years, this requirement will expand to include other organizations:
2024: Listed companies and companies already covered by the old NFRD directive
2025: Large companies meeting 2 of 3 criteria: 250+ employees, €40M+ revenue, €20M+ total assets
2026: Small and medium-sized listed companies
2028: Large non-EU companies with significant activities in the EU
In short: this reporting obligation will affect everyone sooner or later.
But what exactly do these three terms mean?
ESG: Sustainability as a strategic theme
ESG stands for Environmental, Social & Governance and forms the basis of sustainable business operations. While ESG reporting isn’t legally required for most SMEs, more and more customers and suppliers are expecting insight into ESG performance. That means it’s smart to define which ESG topics matter to your business—such as energy consumption, supply chain responsibility, or social impact—and start gathering data. This transparency builds trust with your stakeholders.
CSRD: Indirect impact via customers and the supply chain
The Corporate Sustainability Reporting Directive (CSRD) is an EU directive requiring large companies to report on their sustainability efforts. Even if your company is not directly subject to CSRD, your customers might be—and they’ll need sustainability information from their suppliers. Companies affected by CSRD will increasingly ask for data on CO₂ emissions, energy consumption, and social policies across their value chains (Scope 3 emissions).
SBTi: Science-Based Climate Targets
The Science Based Targets initiative (SBTi) supports organizations in setting scientifically grounded goals for reducing greenhouse gas emissions—aligned with the Paris Climate Agreement. Participation in SBTi is voluntary, but a growing number of companies are choosing to adopt measurable climate targets. It strengthens your environmental impact, enhances your brand, and helps meet rising expectations from customers and partners.
What does this mean for you?
Even if your organization isn’t (yet) required to report, you’ll still be impacted. Customers or partners that fall under CSRD will increasingly request information from you about topics like:
- CO₂ emissions (including Scope 3 – indirect emissions in the supply chain)
- Energy and material usage
- Environmental product impact
- Sustainability, human rights, and circularity policies
For many businesses, this feels like a maze of regulations. Our message: don’t wait, start preparing now.
How does Forehand help?
Forehand works closely with leading suppliers such as Siemon, who are already well ahead in providing product-level sustainability information. That makes it easier for you to:
- Gain insights into the environmental performance of your purchases
- Comply with customer audits or sustainability requests
- Start thinking about your own role in the chain
Learn more about our sustainability initiatives here.
And finally: This is not just a future issue
The reporting obligations are broadening fast. Even if specific rules don’t yet apply to your business, the information you provide to customers or regulators is already critical. Suppliers who are transparent and well-prepared will stand out.
Want to learn more about this topic, what it means for you, or how we can support you? Feel free to get in touch: we’re happy to think along with you!
