Some 88% of top Belgian companies reported on their sustainability performance in 2023, a 4% increase on the previous year, new data from KPMG has found.
According to KPMG, reporting on sustainability has become ‘business as usual’ in Belgium, while there has also been a shift towards integrating sustainability into businesses’ annual reports, with 71% of firms now doing so, up from 68%.
More than three fifths (62%) of Belgian firms identify climate change as a business risk, according to the findings, while 53% acknowledge social risks associated with climate change, and 39% note governance risks.
Some 26% also cite biodiversity loss as a potential risk to their business, slightly up on the previous year.
Leadership teams
As to the steps that Belgian firms are taking to embed sustainability into their operating mindset, some 53% of the top 100 companies (N100) in the country have assigned a board or leadership team member to oversee sustainability matters, a 23-percentage-point increase on the previous year.
Elsewhere, the findings also showed that close to two thirds (64%) of Belgian firms report on specific Sustainable Development Goals (SDGs), however, only 12% of companies provided insights on both positive and negative SDG impacts, suggesting room for improvement in aligning sustainable business activities with global SDG targets.
As required by the Corporate Sustainability Reporting Directive (CSRD), some 47% of Belgian companies have adopted the ‘double materiality’ concept, which involves evaluating both the impacts of a company on society and the environment.
Stakeholder expectations
“As the CSRD and ESRS introduce extensive reporting requirements, companies will need to address regulatory demands and stakeholder expectations, also showcasing their ESG contributions and long-term value creation,” commented Steven Mulkens, executive director, ESG Reporting & Assurance, KPMG Belgium.
“Transparent and reliable sustainability information will soon be part of the general-purpose corporate reporting, driving stakeholder decision-making. Companies that go beyond compliance can demonstrate their value to society, ensuring resilience and future-proofing their business.” Read more here.
