Practical instructions on how to effectively complete ESG questionnaires.
If you haven’t yet encountered a request from your business partners for information about the long-term sustainability of your business, you will soon. More and more entrepreneurs, and not just large corporations, are now emphasizing sustainability and social responsibility. If they themselves are investing resources and energy in ESG improvements and implementing large-scale strategies and projects, it is only logical that they will choose business partners who are also proactive in this area.
ESG is applied across the supply chain and a customer’s ESG score is influenced not only by their own activities but also by their suppliers. It is therefore not worth working with suppliers who are lax in this area and do not care about the environmental impacts of their business. The supplier’s performance is determined through an ESG questionnaire.
Completing an ESG questionnaire should not just be a routine formality. It is also a great opportunity to demonstrate that your company is ready for the challenges of the 21st century. This process can be a challenge for many companies, but it is also a way to gain the trust of partners and strengthen your reputation.
How to approach ESG questionnaires to meet the expectations of your business partners and qualify as a supplier worth working with?
1. ESG as a key priority, not a bureaucratic obstacle
Many entrepreneurs view ESG questionnaires as an administrative burden. In fact, they are a tool that will show your partners how your company approaches environmental issues, working conditions and employee care, fairness and business ethics, and risk management. Instead of seeing them as just an annoying obligation, see them as a marketing tool and an opportunity to present your company in the best light.
Practical tip:
Before you start the questionnaire, choose one or more concrete examples from your own experience that illustrate your responsible approach. For example, saving energy, supporting your local community, or implementing ethical business practices. Use these concrete examples to highlight your commitment to long-term sustainability. This will help you answer more confidently and better communicate your values and approach.
2. Answer honestly but strategically
ESG is a tool for building reputation and trust. If your company is just starting to implement ESG principles, you don’t need to have all the answers “perfect.” If you don’t have specific data, such as your carbon footprint, state that you are working to collect it and analyze opportunities for improvement. Partners often appreciate honesty and a clear commitment to action.
3. Think ahead: ESG as an investment in the future
Completing the ESG questionnaire is just the first step. Real success comes when ESG principles become a natural part of your business. The world is moving towards stricter regulations and higher sustainability requirements. Companies that start today will gain a head start and prepare for the challenges of the future.
Consider developing an ESG strategy that reflects your values and business goals, as well as your ESG commitments for the future, to avoid being caught off guard by any new demands from your partners.
With a comprehensive ESG agenda, you will not only be able to meet the requirements of your business partners, but you will also be prepared to respond effectively to new legislative challenges. Continuous recording of ESG activities and a high-quality sustainability report will make it easier for you to answer questionnaires, save time and resources, and help you gain a competitive advantage in the market.
In addition, a sustainability report will allow you to clearly and attractively present your ESG activities and results – from environmental measures to management improvements, in accordance with legislation. Once you have it ready, you also have most of the data available for further use, which simplifies administration, saves time and speeds up communication with partners.
With a thorough understanding of ESG, we are prepared to help you customize this approach for your business, making ESG not only a regulatory compliance but also a valuable growth opportunity for building a sustainable and reputable brand. Our multidisciplinary ESG team, which includes experienced lawyers as well as economic, tax, and accounting specialists, is focused on developing corporate strategies for responsible, ethical, and sustainable business practices, while also implementing projects to achieve ESG goals. Please feel free to contact us!
