How sustainability insight makes you more attractive to finance

This is how to leverage your sustainability strategy for better financing opportunities  

Looking for funding to grow your business or make it more sustainable? Banks and investors are increasingly looking at sustainability performance when providing loans or investments. A clear overview of what you as a company are already doing in the field of sustainability - and where there are still opportunities - not only helps you comply with laws, regulations and market requirements, but also increases your chances of getting financing. 

Why do financiers ask for sustainability reports? 

 Whereas financial institutions used to focus mainly on profitability and risk, sustainability now plays an increasing role in their assessment of companies. This is due to several regulatory and market factors: 

• CSRD (Corporate Sustainability Reporting Directive) - Larger companies are required to report extensively on their sustainability impacts. Banks use this information to better assess risks and opportunities. This helps them make responsible financing decisions and meet their own obligations to regulators and investors. 

• EU Taxonomy - This legislation defines what does and does not count as 'sustainable'. The goal? To ensure that companies, investors and banks speak the same language about sustainability. Companies that carry out activities that are sustainable according to the taxonomy are more likely to get cheaper and more favourable loans. 

• ESG criteria in credit assessment - Banks and investors are increasingly integrating environmental, social and governance (ESG) factors into their risk assessments. This means that companies with a strong sustainability strategy are considered less risky and are more likely to access capital. 

• Commitment for banks themselves - Banks themselves must also comply with stricter sustainability guidelines and demonstrate that they are contributing to the energy transition. This forces them to support sustainable businesses and provide less financing to companies with high carbon emissions or other negative impacts. 

• Green loans and grants - Financial institutions offer better terms for companies that demonstrate sustainability. Think lower interest rates, longer maturities or access to special green investment funds. 

• Reputation risk and customer expectations - Banks and investors want to avoid being associated with unsustainable or harmful business practices. Companies that transparently report on their impact show reliability and are more attractive to financiers looking to green their portfolios. 

These factors are increasing pressure on companies to gain sustainability insights. Those who take this up proactively will benefit from better financing opportunities and stay ahead of the competition. So, get to work on understanding the sustainability of your business. How do you do it? 

How to improve your funding opportunities with sustainability insights? 

 These are the key steps: 

1. Data collection 

Collect data on your energy consumption, carbon emissions, circular processes and social impact. Use ESG tools, the VSME reporting standard and a sustainability dashboard to make this measurable. 

2. Linking sustainability strategy with financial benefits 

Show how sustainability contributes to cost savings, efficiency and risk management. Financiers seek companies with robust and future-proof operations. 

3. Comply with regulations and reporting standards 

Make sure your sustainability reporting meets guidelines such as the CSRD and standards such as the ESRS, or use a voluntary framework such as the VSME if you are not (yet) CSRD-compliant. This facilitates assessment by financiers. 

4. Transparent communication to stakeholders 

Present your sustainability strategy and performance in a clear and attractive way in your annual report and on your website. This increases your reliability and strengthens your position in the market. 

5. Collaborate with sustainable partners 

Banks and investors also assess how sustainable your chain is. Work with sustainable suppliers and demonstrate how you improve chain transparency.