Mandatory reporting on your ESG policy: think before you act

More and more companies are required to report on their impact on people and the climate. This is a result of the Corporate Sustainability Reporting Directive (CSRD) for publicly listed and large companies. However, non-listed SMEs, micro-enterprises, and non-profit organizations should also take this directive into account. Why is ESG reporting already valuable, and how can your company truly make a difference in terms of sustainability? Meliopus explains it to you.

What is CSRD?

At the end of 2022, the European Parliament approved the Corporate Sustainability Reporting Directive (CSRD). This directive aims to support the transition to a more sustainable economy, foster transparency, and improve the quality of sustainability information. Europe aspires to become the first climate-neutral continent by 2050. The CSRD requires European companies to comprehensively map out all relevant ESG themes (Environment, Social, Governance). The directive will be implemented gradually between 2025 and 2028. Initially, it will apply to publicly listed companies within the European Union, large enterprises, and companies outside the EU. However, businesses of all sizes can benefit from a structured and goal-oriented ESG policy.

Developing a structured ESG policy

The more you understand about the CSRD, the better prepared you will be to comply with the regulations in the long term. Although many aspects remain unclear, and the legislation does not yet apply to numerous companies, it is wise to start gaining insight into your sustainability impact now. While the directive currently focuses solely on reporting, it is likely to result in mandatory standards and requirements in the future.

• Measuring is knowing: By systematically mapping your energy performance, you can anticipate and adapt effectively. Moreover, companies that begin collecting data now will be better prepared when the regulations are fully in place.

• Rising energy costs: Energy prices continue to rise, fossil fuels are becoming scarcer, and taxes on them are increasing. Optimizing your energy consumption is always a prudent choice: managing your usage efficiently minimizes risks and creates more financial flexibility in the long term.

• Responsible business attracts talent: Companies actively working on their sustainability policies have a competitive edge in attracting talent. Employees increasingly value employers who focus on their societal impact and responsible corporate image.

These examples illustrate the importance of every company establishing a structured sustainability strategy and reporting on it. However, do not overhaul your entire business operations arbitrarily; base your actions on facts and data. In this roundtable discussion with our partner ING, we explored the importance of data and business intelligence (BI).

Gradual steps towards sustainable business operations

Switching from fossil fuels to sustainable heating alternatives? That might seem logical. However, it is not the first or only step your company can take. Gradual and systematic improvement of your energy performance leads to the best long-term results.

1. Optimize your physical workspace 
   The fewer square meters your office or building occupies, the less energy, maintenance, and raw materials you consume.
   
   Through benchmarking, Meliopus helps you optimize your workspace dimensions, resulting in an ideal space for an efficient and human-centered workplace. This creates a double win: you save costs and make a positive climate impact.

2. Smartly manage your systems
   The next step is optimizing your actual energy consumption. While you could purchase brand-new systems and renovate your entire building, this quickly becomes expensive and disruptive to your operations. Instead, consider regulating your existing systems more efficiently, potentially reducing consumption by 20–30%.
   
   The adage “measuring is knowing” applies here too. By collecting and analyzing data, you can strategically choose sustainability measures tailored to your company’s needs. Using connected digital meters and temporary or permanent submetering systems, Meliopus identifies patterns and anomalies in your consumption through its data platform. Based on these insights, you can take targeted action.
   
   For instance: Does your parking lot lighting need to be on 24/7? Does the logistics team require heating during cleaning operations? Is it necessary to cool your building to 23 °C in summer, even though this consumes excessive energy during heat waves?
   
   Adjusting these practices can lead to significant energy savings.

3. Make your energy supply sustainable
   Once you have optimized your energy performance, the next step is to focus on sustainability. By purchasing green energy or installing sustainable energy solutions like solar panels or heat pumps, you not only reduce your ecological footprint but also benefit financially through lower energy costs and potential subsidies.

Sustainability: start today and prepare for the future

Many companies underestimate how straightforward it can be to improve their energy performance and enhance their sustainability strategy. The CSRD requires transparency about your impact while providing an opportunity to lead the energy transition.

Meliopus guides you step by step to improve your company’s energy performance. From benchmarking and analysis to smartly managing systems and implementing sustainable energy solutions, Meliopus helps you move in the right direction.

Start today to prepare your business for the future, both in terms of regulations and sustainability.