Why Sustainability Reporting Is Essential for Competitive Bids
In today’s business landscape, sustainability has shifted from being a mere bonus to a critical necessity, especially with the introduction of the Corporate Sustainability Reporting Directive (CSRD). This directive mandates nearly 50,000 EU companies to disclose their climate and environmental impacts, establishing stringent reporting requirements that align with broader sustainability goals. Companies must navigate a framework of double materiality, robust internal processes, and mandatory assurance, all while ensuring compliance by specified fiscal deadlines. As organisations adapt to these evolving standards, understanding these new market forces is essential for future success.
While many are still braced for these changes (you can see our breakdown of who will be affected and when these will come into force in our CSRD explainer here), many in the Irish market have experienced a steady creep in sustainability-related disclosure. In a survey of UrbanVolt’s clients, 18% expect sustainability-based disclosure to begin affecting their business in the next year. 7% even went as far as to say that even the ability to disclose what they are doing to reduce their emissions had helped them to maintain competitiveness for Requests For Tender.
These changes are significant – companies are now missing out on business if they cannot disclose key sustainability information. One client reached out at the beginning of this week after a tender that had fallen through and said that “we had seen tenders that required 10% sustainability disclosure, at most 15% for any kind of government tender. But this one required 35% sustainability – we were caught out by this because they were a private company.” Sustainability is shifting – from a nice to have to a have to have.
For many in the metals manufacturing industry who work with the public sector, these requirements are nothing new. Green Public Procurement (GPP) refers to the practice of public authorities aiming to acquire goods, services, or works that have a lower environmental impact. Recognised as an important tool for achieving environmental policy goals, GPP plays a crucial role in promoting sustainability within public sector purchasing decisions. However, there are growing trends in the private sector that say that these measures do not go far enough.
Ashley Shak, Head of Sustainability at Dogpatch Labs, frequently connects private-sector start-ups to semi-state entities to run pilot projects. “Start-ups have told us in the past they wished the government would do more to support and encourage green procurement. This in turn, would offset any higher costs related to sustainability projects, making it the more attractive and economically viable option for the customer. We are beginning to see the beginning of this process now.”
These changes are, in fact, a cause for optimism amongst the Irish market. For example, 78% of clients surveyed said they undertook our solution to enhance their brand’s reputation. When we covered the cost of implementing a bespoke solar solution with turnkey design, and maintenance costs, our key benefit helped them to align with growing sustainability needs.
Author: Will Penn | Energy Associate Manager | UrbanVolt
Become a Leader
To gain a deeper understanding of how sustainability reporting can enhance your competitive edge in tenders, don’t miss our upcoming webinar, Beyond Carbon: Building Resilient, Sustainable Businesses.
This session will offer expert insights on how to equip your business to excel in today’s sustainability-driven marketplace. Join us to ensure you’re prepared for the future of transparent, impactful reporting!
For more information on the webinar, please click here.