For many companies, sustainable business practices have become a central pillar of their strategy. When the European Union adopted the Corporate Sustainability Reporting Directive (CSRD) in November 2022, more and more businesses were required to report on the impact of their activities on people and the environment. It’s all about more transparency and better quality of sustainability information! But how should you best approach this communication about sustainable business practices?

A proactive approach pays off

Starting January 2025, the CSRD directive requires around two thousand larger Belgian companies to regularly compile a detailed report on, among other things, their environmental impact, personnel policies, measures against corruption and bribery, a nd compliance with human rights. Although this directive has not yet been translated into Belgian law (the deadline for this was July 2024), most companies will still feel its impact.

In addition to large enterprises, SMEs will also soon be required to report on sustainability. Customers and suppliers are raising the bar in this area. An entrepreneur who proactively responds to this will have a significant advantage over the competition. Here are four practical tips.

Tip 1: Continuously communicate about sustainable business initiatives

Publishing an annual sustainability report is no longer enough to convince stakeholders of the seriousness and integrity of sustainability efforts. While such reports remain important, they are only one part of a broader communication approach. Entrepreneurs need to communicate regularly and proactively about their sustainability initiatives, including via social media, newsletters, blog posts, and videos. Ensure that the message is consistent and transparently shares the progress and challenges of sustainability efforts.

Consumers, investors, and other stakeholders want to see that a company is actively engaged in sustainability, not just on paper, but also in daily practice. This means that companies need to communicate about the concrete steps they are taking, the successes they achieve, and the challenges they face. Make sustainability a permanent topic of conversation. Some examples: regularly share updates via social media about sustainability progress, such as annual CO2 reduction and energy savings. Additionally, publish quarterly reports that transparently show the impact of sustainable initiatives, including areas for improvement and future goals.

Tip 2: From compliance to opportunity

The mandatory CSRD reporting requirements offer entrepreneurs unique opportunities to stand out from direct competitors. It’s about much more than compliance or adhering to existing regulations.

A company that goes beyond what is legally required can position itself as a leader in sustainability. This requires a proactive approach, with investments in actions that exceed the minimum requirements. Think, for example, of investments in new technologies, the development of sustainable products, and/or collaboration with NGOs to amplify the impact. This approach opens the door to brand loyalty, new market opportunities, and attracting investors seeking sustainable investments. In practice: by following the mandatory sustainability requirements, you can develop innovative products as a company, such as energy-efficient technologies that appeal to new markets. Additionally, you attract investors who focus on ESG criteria, giving you extra access to green capital.

Tip 3: Maximize creative communication

In a world where sustainability is increasingly becoming the norm, it is essential to stand out through creative communication. Look beyond traditional communication channels and formats. For instance, how about using storytelling as a powerful tool to hold stakeholders’ attention? Let employees talk about the sustainable initiatives they are involved in, or give customers insight into how they contribute to the company’s sustainability goals.

Using visual tools such as infographics, videos, and interactive online platforms also helps make complex sustainability information more accessible and attractive. And why not use innovative technologies such as augmented reality (AR) or virtual reality (VR) to convey a sustainability message in a new, interactive way? Some examples: launch an interactive online tool that allows customers to calculate and reduce their own carbon footprint using company-specific sustainable products. Or set up a creative campaign with influencers promoting sustainable lifestyles, such as a zero-waste challenge with weekly updates and community involvement.

Tip 4: Use vulnerability as a strength

One of the most effective ways to build trust with stakeholders is by showing vulnerability in sustainability communication. This means that companies share not only their successes but also honestly discuss the challenges and failures they encounter along the way. Transparency about the obstacles to be overcome shows that a company is genuinely committed to sustainability, even when it gets tough.

Vulnerability also means admitting that a company does not have all the answers or is still learning how to improve its impact. At a time when greenwashing is a growing problem, this honesty ensures a more authentic and credible image.