Amsterdam,  21st of March 2025 –  On March 6, in partnership with Deloitte, we organized an engaging and inspiring ESG webinar for our portfolio companies. During the session, we explored the impact of ESG by discussing both regulations and, more importantly, opportunities for value creation. Deloitte shared valuable insights on how companies should approach ESG not just as a compliance issue, but rather as a possibility for growth and value creation.

More and more companies are facing ESG (Environmental, Social & Governance) reporting requirements. What could feel like an obligation actually offers opportunities for innovation and value creation. During the recent ESG webinar, organized by Holland Capital in collaboration with Deloitte, participating portfolio companies gained valuable insights into ESG and its impact on their organization. Below we share the key learnings from this webinar.

ESG: Why is it relevant?

ESG is not a trend, but has long been an essential aspect of how companies operate. Finding the right balance between a company’s impact on people, the environment and its (financial) performance is something the United Nations already pointed out 40 years ago. Companies should see sustainability not only as an obligation to comply with regulations, but also as an opportunity to become more efficient, transparent and future-proof.

• Environmental: How does your company affect the environment? Consider carbon emissions, energy consumption and circular economy.
• Social (social): How do you interact with employees, customers and society? Think diversity, inclusion and working conditions.
• Governance (governance): How are policy and strategy set up to conduct business ethically?

A key message from the webinar: ESG is not only relevant for large corporates, but also for SMEs. Many companies are already implementing sustainable strategies and activities, perhaps without being aware of it being labeled as sustainable. By giving this structure, entrepreneurs can leverage ESG as a competitive advantage.

Laws and regulations: What do you need to know?

An important topic discussed during the webinar was the Corporate Sustainability Reporting Directive (CSRD). A brief update on the recently proposed changes:

• Companies with more than 1,000 employees will not fall under the obligation until later.
• Large companies continue to impose ESG reporting requirements on their suppliers and supply chain partners.
• Transparency about ESG performance is becoming increasingly important to various stakeholders, such as banks, investors and potential employees.

  For entrepreneurs, this means that even if their company is  not (or no longer) directly in scope of the  the CSRD, they could indirectly be requested to share ESG information with partners and investors. This also applies to Holland Capital: our obligations towards investors and from complying with the Sustainable Finance Disclosure Regulation (SFDR) requires our portfolio companies to provide ESG data. Those insights can be valuable and provide benefits, or identify necessary actions.

Materiality: Where do you start? 

An important concept within ESG is materiality – or, in other words, which ESG topics are most relevant to your company? Materiality can be viewed from two perspectives, so-called double materiality:

• Financial impact: Which ESG topics affect profitability?
• Social impact: What impact does your company have on people and the environment?
• A structured approach helps companies not only comply with regulations, but also achieve strategic benefits.

Conclusion: ESG as a catalyst for growth? 

The main message from the webinar: don’t see ESG as a burden, but as an opportunity for growth, efficiency and value creation. By understanding key material themes and responding to sustainability developments, companies can not only comply with regulations, but also gain strategic advantages.

Moreover, many companies are already engaged in sustainable initiatives and strategies – they might haven’t yet labeled them as ESG.