Shopping Cart

No products in the cart.

ESG - Guidelines and Obligations for Companies.

ESG (Environmental, Social, and Governance) is de term die gebruikt wordt om de duurzame en ethische impact van een onderneming te beschrijven. Met groeiende zorgen over milieuveranderingen en sociale onrechtvaardigheid, wordt ESG-rapportage steeds belangrijker voor bedrijven wereldwijd, inclusief in Nederland. Dit artikel biedt een overzicht van de ESG-verplichtingen in Nederland, inclusief de relevante bedrijven, implementatiedata, […]
ESG - Guidelines and Obligations for Companies.

ESG (Environmental, Social, and Governance) is the term used to describe a company's sustainable and ethical impact. With growing concerns about environmental change and social injustice, ESG reporting is becoming increasingly important for companies worldwide, including in the Netherlands. This article provides an overview of ESG obligations in the Netherlands, including the relevant companies, implementation dates, and a detailed explanation of the ESG scopes.

Which companies must comply with ESG standards in the Netherlands?

In the Netherlands, as in other EU countries, there are specific categories of companies that must comply with ESG regulations. These are mainly:

1. Large Public Companies: Companies traded on the stock market.

2. Large Entities: Companies exceeding certain criteria in terms of size, including more than 500 employees and net sales of more than €40 million or a balance sheet total of more than €20 million.

3. Financial Institutions: Banks, insurance companies, pension funds, and other financial entities.

These companies are required to report extensively on their ESG activities and impact, according to European guidelines and local legislation.

Implementation dates of ESG regulations

The Corporate Sustainability Reporting Directive (CSRD)., which regulates ESG reporting requirements in the EU, will be phased in in the Netherlands:

2024: For companies already covered by the Non-Financial Reporting Directive (NFRD).

2025: Expansion to other large companies not previously covered by the NFRD.

2026: Extension to certain small and medium-sized enterprises.

Explanation of ESG Scopes 1, 2, and 3.

Scope 1: Direct Emissions.

Direct emissions are emissions that result directly from activities that a company controls or owns. Examples include:

- Commercial vehicle emissions.

- Emissions from combustion processes in commercial buildings.

- Emissions from chemical production processes.

Scope 2: Indirect Emissions from Purchased Energy.

Scope 2 emissions refer to indirect emissions that arise from the production of the energy the company purchases and consumes. This includes:

- Electricity purchased and consumed by the company.

- Steam and heat purchased externally.

Scope 3: Other Indirect Emissions.

Scope 3 includes all other indirect emissions that are a result of the company's operations but are not directly controlled by the company. These may include:

- Emissions related to the production of purchased materials.

- Emissions from use of products sold.

- Emissions from business travel, commuting, and waste disposal.

Conclusion

For Dutch companies, ESG compliance means not only following the law but also positioning their business for future sustainability and success. Properly reporting and managing ESG practices can help companies reduce their environmental impact, improve their social contributions and strengthen their governance practices. It is essential that companies prepare for these requirements to meet both regulatory expectations and those of investors, customers and society at large.

References

- Corporate Sustainability Reporting Directive (CSRD).

- Greenhouse Gas Protocol

- Dutch implementation legislation ESG