We all know how much the EU likes a good bit of regulation, and ESG – or Environmental, Social, and Governance to give it its full name – is no different. In fact, ESG reporting falls under no less than two distinct EU Directives, two Reporting Standards, and an Omnibus simplification package (at least there’s that).
Belgium, additionally, brings a further two frameworks to the table: one for listed companies, and one for (large) non-listed companies. Overwhelmed? So are we.
Our December keynote speakers Koen De Puydt and Marie-Anne Theodoroudis of Andersen in Belgium help break down the legalities and practicalities of good governance for us. You can also find a copy of their presentation here.
We round off this article with 7 practical tips & tricks to help you implement ESG reporting in your organisation.
'This, essentially, is where the RFP side of things comes into play. Potential clients are looking for confirmation that your corporate values align with theirs and that you are a trustworthy supplier who will support them in their endeavours to become more sustainable. '
In essence, Governance is the framework that brings – and holds – together your Environmental and Social initiatives. Dive down our ESG rabbit hole where we pull together the E, the S, and the G in a comprehensive overview, if you haven’t already done so.
Though for now, Governance…
Why does ESG Reporting matter?
Simply put, it’s a compliance thing. The EU is continuing full steam ahead with its aim to become the first carbon neutral continent and if you operate in the EU, you’ll need to prove you’re doing your bit.
More importantly, both investors and corporate clients look for partners that share their values and sustainability goals. And with directors increasingly carrying legal and reputational responsibility, it’s important to know what’s what and to be able to report on it. In other words: good governance.
A quick reminder of the key Global and European sustainability targets “we” are looking to meet:
- The 2015 Paris Agreement: to keep global warming below 1.5°C (reduced from 2°C).
- The 2030 EU Climate Targets: to reduce emissions by 55% compared to 1990; to achieve at least 32% renewable energy by 2030; to reduce energy consumption by 32.5% compared to 2007.
- The European Green Deal: to make Europe the first climate-neutral continent by 2050; to achieve a fair and prosperous society; to decouple economic growth from natural resource use.
- The UN Sustainable Development Goals (SDGs): the UN has set 17 interlinked objectives on ending poverty, inequality, injustice, and climate change, to be achieved between 2015-2030.
Two EU-wide Directives, Two Standards, and One Omnibus
To help guide you through the maze of responsibilities, the powers that be have designed the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS), the Voluntary Sustainability Reporting for SMEs (VSME), the Corporate Sustainability Due Diligence Directive (CSDDD), and – because it really is a lot – have then gone on to ‘simplify’ things by way of an Omnibus Simplification Package.
The Acronyms Explained, Briefly
CRSD – the Corporate Sustainability Reporting Directive
The one law that rules them all and in effect since 1 January 2024. It determines which companies must report on the impact of their activities on people and the environment, and comes with a number of key reporting requirements.
ESRS – European Sustainability Reporting Standards
Next up are the ESRS, the mandatory standards to meet. They define how you should report, and what you should be reporting on. ESRS is a standardized reporting system that ensures information is transparent, reliable, and comparable across companies.
VSME – Voluntary Sustainability Reporting for SMEs
Of course, not every organisation is large enough to warrant a full CSRD report. And so, there’s the VSME, or the voluntary, simplified reporting standard for small and medium-sized enterprises. Although based on ESRS, it’s not a legal requirement. Instead, it helps SMEs provide the kind of information that financial institutions and corporate clients might be looking for as SMEs are part of their supply chain.
CSDDD – Corporate Sustainability Due Diligence Directive
In turn, the CSDD rules aim to ensure that companies in scope identify and address adverse human rights and environmental impacts of their actions inside and outside Europe. Although SMEs needn’t report on this, you may face indirect pressure from corporate clients that are looking to identify how their value chain is performing.
Omnibus Simplification Package
Realising this is ‘a lot’, the EU has significantly reduced the CSRD scope. Focusing strictly on the largest companies with the biggest impact, the Omnibus simplifies and streamlines requirements and standards, for a more pragmatic transition towards a sustainable economy.
DO: Clearly state your strategic goals and operational focal points. You don’t need to cover every topic of the ESRS or of the EU’s Climate Targets or the UN’s 17 SDGs; you just need to clarify what issues you are committing to and then back this up with factual evidence.
This, essentially, is where the RFP side of things comes into play. Potential clients are looking for confirmation that your corporate values align with theirs and that you are a trustworthy supplier who will support them in their endeavours to become more sustainable.
Two Codes to Governance in Belgium
And of course, then there’s Belgium… The Corporate Governance Code 2020 is a code of conduct for Belgian listed companies. It emphasizes monitoring control system effectiveness, managing potential conflicts of interest, and preventing misuse of power. It also places strong emphasis on long-term thinking and on respecting the legitimate interests of all stakeholders, including shareholders, employees, and the environment.
Code Buysse was created in 2005 on the initiative of Count Paul Buysse, who strongly promoted the professionalization of Belgian companies and saw good governance as an essential part of that. It is non-binding, providing recommendations and best practices with a focus on long-term vision.
DON’T: Make vague claims, neglect to provide proof, or fib outright. If you use ‘eco-friendly transport’ explain what makes it so eco-friendly. Similarly, you might say that your moving boxes are 100% recyclable, but if the cardboard comes from non-sustainable forests, these are just pretty words.
Perhaps you promise ‘fair wages for all staff and partners’ but remunerate your subcontracted or temporary workers below industry standards. An ‘easy’ oversight, but an important one nevertheless, and one that will see you caught out eventually.
One of the biggest governance failures, however, is not being able to demonstrate compliance. From policies to decision making processes, please document your actions.
7 Practical Tips & Tricks for Strong ESG Governance
But which system is right for you? The good news is that, for ABRA members, strong ESG governance doesn’t require a large team or complex systems — it simply requires clear ownership, consistent practices, and good documentation. Even small companies can implement an effective and credible governance framework with a few practical steps:
- Appoint an ESG Responsible Person
This can be part-time and/or combined with an existing role (HR, operations, compliance). The goal is simple: someone must own the topic. This ensures ESG doesn’t disappear in daily business and gives clients a clear point of contact during audits. - Use Simple Dashboards to Track KPIs
You don’t need specialised software. Basic tools like Excel can track supplier assessments, training completion, even basic environmental metrics (e.g. fuel use during moves). Keep in mind that you need clear Dashboards that help leadership monitor progress and show clients that governance is active, not theoretical. - Provide Regular Training & Awareness
In relocation, risks often arise from human error — mishandling personal data, unclear processes, or inconsistent supplier checks. Short annual training sessions on topics such as ethics, anti-corruption, data protection, human rights, and sustainability greatly reduce operational and reputational risks. - Integrate ESG Into Risk Management
Treat ESG risks the same way you treat financial or operational risks: identify → assess → mitigate → follow up. When you embed ESG into risk management, you ensure continuous monitoring rather than one-off compliance. - Provide a Short Annual ESG Summary (2–4 pages)
A concise overview of your policies, key actions, KPIs, and improvements is a great first step. It demonstrates transparency, professionalism, and readiness for CSRD-driven supplier audits — without too much administrative burden. - Align Governance Practices with CSRD Expectations
We cannot stress this enough: even if most ABRA members are not directly in scope of the CSRD, your clients are. This means they increasingly expect documented policies, evidence of oversight, supplier due diligence, and reliable ESG data. - Use Supplier ESG Questionnaires
A brief supplier questionnaire helps assess risks, demonstrate oversight, and protect against supplier-caused issues. This is one of the clearest ways to reduce exposure to data breaches, unethical practices, and operational failures.
In Summary
Responsible governance is possible without heavy bureaucracy. It helps embed your ESG initiatives across your entire organisation and ensures your processes are trustworthy, consistent, auditable and legally compliant. Finally, it positions you as a reliable, compliant partner within global value chains.
Our thanks go out to the team at Andersen in Belgium for helping us put this article together. Please do reach out to them if there is anything they can help you with: they’d love to hear what challenges you face today. What governance questions come up most with clients? Where would templates or guidance help the most?
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