In itself a good thing, yet it remains important for SMEs and midcaps to collect from data about their ESG efforts and also to continue to reduce their carbon emissions.
"}},{"componentType":"sectionTitle","title":"What is the impact of the European Commission's Omnibus package for Belgian companies?"},{"componentType":"paragraph","richBody":{"value":"Marc Callier, Head of Sustainability ING: "The European Commission has promised to tackle over-regulation and administrative burdens on companies. In its Omnibus package, it foresees, among other things, that SMEs will no longer be required to report on their ESG efforts. If that proposal is accepted in the European Parliament, the bulk of Belgian companies will be exempt."
"However, large companies will remain subject to the ESG reporting requirement. And they will request data from their suppliers and partners anyway. The voluntary reporting standard VSME will help SMEs and midcaps with this. But that method requires considerably less effort than the CSRD reporting obligation. "What is the impact of the European Commission's Omnibus package for Belgian companies?
"},"alignedImage":{"position":"left","transformBaseUrl":"https://assets.ing.com/transform/84c66c4d-4ed5-4c9a-b433-f38fae117c29/Marc-Callier_ING","original":"https://assets.ing.com/m/4ff2c2257db86ab5/original/Marc-Callier_ING.webp","extension":"webp"}},{"componentType":"sectionTitle","title":"You advocate that companies continue to invest in ESG and in documenting those efforts?"},{"componentType":"paragraph","richBody":{"value":"Marc Callier: "Having an ESG strategy and following up on what your actions deliver is still a good idea. By being proactive about ESG and your impact, you future-proof your company and ensure that you remain attractive to investors or acquirers. We also see more criteria emerging in public tenders that are linked to ESG."
"That trend will continue in the future. And those who report on their efforts facilitate their access to ‘sustainable finance’ and attractive financing conditions. Don't forget also that those who invest in sustainability save: energy costs fall and fewer raw materials will be needed. Investment will continue to be necessary: European climate goals require, among other things, a reduction in CO2 emissions to zero by 2050."
"}},{"componentType":"sectionTitle","title":"What can companies do to reduce their carbon footprint?"},{"componentType":"paragraph","richBody":{"value":"Katelijne Norga, Pantarein consultancy firm: "Your carbon footprint is the total amount of CO2 your company emits. This involves emissions in three categories, and it comes down to taking measures in each of them. First, there is the CO2 that your company itself emits, for example from heating your buildings or from industrial processes (scope 1 emissions). But the electricity you consume also has a carbon footprint, namely the CO2 that was emitted during the generation of that energy. Those are the scope 2 emissions. So by being more energy efficient and switching to renewable energy, you can already make a lot of CO2 gains."
"Finally, your footprint also includes the CO2 emitted in your value chain, in the production of the raw materials you purchase, or during the transportation of goods to your customers, for example. By consciously factoring in CO2 when choosing suppliers, you can take steps to reduce those scope 3 emissions."
"},"alignedImage":{"position":"right","transformBaseUrl":"https://assets.ing.com/transform/10ea2b5a-aeb9-4518-8be6-d399c761c0f0/Katelijne-Norga_Pantarein","original":"https://assets.ing.com/m/3a78e656e924e279/original/Katelijne-Norga_Pantarein.webp","extension":"webp"}},{"componentType":"sectionTitle","title":"What do companies themselves actually stand to gain from this?"},{"componentType":"paragraph","richBody":{"value":"Katelijne Norga: "Companies are increasingly feeling the impact of global warming. The food sector, for example, is already experiencing problems due to drought and flooding, and the effects are also being felt in other sectors. Becoming independent of fossil fuels is also important given the geopolitical situation. The first way to do that is to draw up your own reduction plan with clear targets for decarbonization. And there is also an economic interest: the transition to a climate-neutral, circular economy offers great opportunities for companies. I am thinking for example of the construction and recycling sector. It does represent a positive choice for the future."
"}},{"componentType":"highlight","title":"Online reporting platform for SMEs","richBody":{"value":"In order to support SMEs in simplified ESG reporting, banking federation Febelfin is working on a common digital platform.
Marc Callier: "Via that platform, companies will be able to store their data once and then share them, not only with member banks, but also with other stakeholders. This way, an SME will not have to create a separate report for each client or partner. The platform is currently under development and will be widely rolled out from the end of this year."
Find out how ING supports businesses in the sustainable transition.
These article was previously published in Trends/Tendances.
"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","richBody":{"value":"Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on ing.com/climate.
This article is for informative purposes only and the information set out herein may change with time. We therefore recommend that you always reference specific regulations and requirements with the competent authorities for the latest information. Additionally, we advise that you seek professional advice on a case-by-case basis before making any decisions. Please note that ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.
"}}]}}}