What effect will sustainability have on my company and employees?
Since Mario Draghi raised the alarm about the competitiveness of European business, thinking about the introduction of sustainability legislation (CSRD) has changed. And that’s a good thing – better to get it right than to rush it. With new EU directives, such as the Energy Performance of Buildings Directive (EPBD), which came into effect on May 28, 2024, and the Corporate Social Responsibility (CSR) Directive, which comes into force on May 29, 2026, SMEs must also take action. Large companies (250+ employees) are already required to comply with the guidelines, but the ripple effect extends to SMEs and supply chain partners.
The question is: how can companies remain competitive and integrate sustainability into their operations while remaining financially viable? And more importantly, how can they turn sustainability into a strategic advantage rather than just another compliance burden?
Sustainability and business models: a shift in strategy
To make informed decisions, companies must compare alternatives while considering the impact of initial sustainable investments. Collaborating with supply chain partners using comparable financial instruments and regulatory frameworks is key. However, a major gap in knowledge exists within the market. Many companies struggle to understand the long-term benefits and financial feasibility of good sustainable investments.
Consumer demand for transparency
Consumers today demand transparency. They want to know: is brand A more sustainable than brand B? A truly sustainable approach integrates ‘all’ costs—economic, ecological, and social—into pricing structures. Ideally, platforms like Trueprice.nl would become standard, ensuring products reflect their true cost, including environmental impact. But for now, companies have the opportunity to define their value proposition and communicate their sustainability efforts effectively.
Aligning business models with EU standards
To help consumers make the right choices, businesses must clearly communicate their sustainability efforts. One effective way is by referencing EU standards like CSRD and NTA 8800, which helps companies:
- Compare the cost drivers of sustainable alternatives.
- Align with the ESG (Environmental, Social & Governance) Directive.
- Provide verifiable data that supports sustainability claims.
A well-designed business model ensures that end-clients can make ethical, well-informed decisions.
Who is responsible for sustainability?
Sustainability is not just a CEO initiative—it requires commitment across all departments. Key players in this transition include:
- Sustainability experts – Define and monitor sustainable impact.
- Innovation experts – Maximize sustainable value
- Project engineers – Maximize investments costs
- Shareholders – Increase stockholder wealth
- Legal experts – Ensure compliance with new regulations and certification requirements.
- Finance & Procurement – Assess financial feasibility and maximizes the value for money on a strategic level
- HR experts – Embed sustainability into corporate culture and workforce training.
How CSRD influences every business function
All parties involved must be aware of how the Corporate Social Responsibility Directive (CSRD) impacts business models and company processes. In other words, it influences the Design, Build, Finance, Maintenance, Operate and Residual of products and processes. A siloed approach to sustainability will fail. Instead, businesses must create cross-functional teams that integrate sustainability into all operational processes.
Building a holistic sustainable business model: where to start?
To successfully integrate sustainability, businesses need a structured implementation plan. This plan should address the three key sustainability scopes:
- Scope 1 – Direct emissions from company-owned sources (e.g., fuel consumption).
- Scope 2 – Indirect emissions from purchased energy (e.g., electricity).
- Scope 3 – Indirect emissions from the entire value chain (e.g., production, logistics).
The advice is to provide future experts with guidelines (scope 1, 2 and 3) on how they can create a holistic sustainable business model with a complete implementation plan (for own investments). Businesses must establish clear criteria for sustainability certifications and understand when and how to comply with legal standards.
Sustainability as an opportunity, not an obligation
Sustainability should not be seen as a burden but as a competitive advantage. Companies that proactively invest in sustainable business models have better chances of survival, will reduce costs, strengthen their market position, and build stronger consumer trust. By leveraging financial instruments, aligning with legal frameworks, and ensuring transparency, companies can do more than just comply—they can lead the transition toward a sustainable economy.
Sustainability starts now. The question is: will your business adapt or fall behind?
