Companies around the world are increasing the number and ambition of their sustainability commitments, reflecting the urgent need for action to mitigate climate change. Transparent disclosure is an important way to underpin these efforts, to ensure that companies are open and transparent about their performance, future strategy, and material impacts, as well as the risks and opportunities they face. In the Netherlands, and across the European Union, the Corporate Sustainability Reporting Directive (CSRD) has created a new era of sustainability reporting. In the post-CSRD world, sustainability reports need to provide investors and key stakeholders with more detailed, standardized, and wide-ranging disclosures about sustainability. This note provides a snapshot of the state of corporate sustainability reporting in the Netherlands, based on an assessment of the approach taken by 30 leading Dutch companies.

The key elements of sustainability reporting
Our assessment scores companies based on 4 key elements of sustainability reporting. These are not a comprehensive measure of good reporting, but are intended to capture some of the most effective ways in which companies can communicate their sustainability objectives:

1. Net zero target. Has the company disclosed a specific target date to achieve “net zero” or “climate neutrality”? While many companies have set shorter-term emissions reduction targets, a net zero target is more ambitious, committing the company to long-term emissions reductions.

2. SBTi validation. Has the company disclosed validation from the Science Based Targets initiative for its emissions reduction targets? The SBTi gives companies a way to obtain external validation that their targets align with the decarbonization pathway required to meet the objective of the Paris Agreement. Note that for this indicator, we include SBTi validation for either near-term or long-term targets. Also note that we only counted SBTi-validated targets, and did not include targets prepared in line with SBTi principles but lacking validation.

3. CSRD/ESRS-aligned Annual Report. Has the company published an Annual Report in alignment with the ESRS standards, as required by CSRD? CSRD compliance is currently voluntary in the Netherlands, because the Dutch government has not transposed CSRD into national legislation. However, many companies have published CSRD-compliant reports on a voluntary basis. Note that for this indicator, we use companies’ self-reported alignment with ESRS.

4. Standalone Transition Plan. Has the company published a Climate Transition Plan, setting out a detailed plan to achieving their climate targets? While ESRS reporting includes some disclosures relating to climate transition plans, publishing a full standalone Plan – separate to the Annual Report – can be a helpful way for companies to set out more depth and detail on their approach to achieving their objectives, following standards such as the Transition Plan Taskforce Disclosure Framework.

Our findings
The results of our survey are as follows. These are Narrative Labs’ interpretations based on a review of publicly available materials, and do not represent the official statements of the companies in question.

Overview of results

• A majority of companies, 87%, have adopted a net zero target.

• SBTi validation was evenly split: half of the companies we reviewed had obtained it.

• Three-quarters of the companies we reviewed had published CSRD-aligned reports. This indicator mainly splits according to listed/unlisted status, because listed companies had expected to face mandatory CSRD reporting for FY 2024.

• Only one-third of companies reviewed had published a standalone Transition Plan: the lowest score of the four indicators.

Our Analysis
What can companies take from these results? Here are four key takeaways:

1. Setting a net zero target is the first step
Setting and disclosing a net zero target is an important way for companies to provide long-term guidance on their decarbonization pathway. Most large companies have a net-zero target in place, meaning companies with only near-term targets, such as 2030 targets, are likely to be left behind quickly by peers if a long-term target is not adopted. Adopting a long-term target also reduces uncertainty about the direction of travel for your business, which may be helpful for investors and business partners. Conversely, sticking to near-term targets leaves uncertainty about your approach to your remaining emissions, which may represent a source of future financial risk.

2. Substantiate your targets by developing a Transition Plan
Companies adopting long-term targets also need a plan for getting there! A net-zero target is a significant financial and operational commitment, even for companies with comparatively lower emissions intensities. Publishing a transition plan alongside your net zero target can be a valuable way to set out your approach and provide greater transparency and legitimacy to your target. While ESRS includes some core disclosures related to companies’ transition plans, only one-third of the companies we reviewed have published their plan as a full, standalone document. Therefore, publishing a plan can help to set your business apart from your peers. See below for more on transition planning.

3. SBTi? Probably, but not always
SBTi validation can be a helpful step to provide additional validity to your targets. However, this approach isn’t universally adopted, meaning that companies should not feel that SBTi validation is an essential requirement, nor a must-have to underpin your sustainability communication. Instead, we recommend considering whether the SBTi approval process can also provide wider strategic benefits, such as providing additional scrutiny on your internal climate assumptions and strategy.

4. Don’t wait until the deadline!
Finally, CSRD reporting and ESRS alignment is largely driven by regulatory deadlines. Publicly traded companies in ‘Wave 1’ reported on Financial Year 2024 using ESRS, and will continue to do so. ‘Wave 2’ companies, such as privately owned businesses, are now exempted until FY 2027. We expect some ‘Wave 2’ companies to make use of the delay and wait longer to achieve full CSRD alignment. However, we also expect many private companies in the Netherlands to continue with CSRD reporting this year. The standardized format and layout of a Sustainability Statement has already become best practice in sustainability reporting, ensuring comparability with peer companies. And without the pressure of mandatory compliance, Wave 2 companies can tailor their reporting as needed. Meanwhile, EFRAG’s work to streamline the ESRS standards should outline a less burdensome model of reporting, focused on priority information.

What is Transition Planning?
Publishing a Climate Transition Plan allows companies to set out a clear, long-term plan for achieving their climate targets. Unlike broader ESG reporting, a Transition Plan focuses only on climate change, allowing your story on climate mitigation and adaptation to take precedence, showcasing more depth and detail than in traditional annual reporting, and giving investors long-term clarity on your strategy.

Meet our ESG Reporting team

This research report is provided for informational purposes only. The content within this report is based on information and data obtained from sources deemed reliable at the time of publication. While every effort has been made to ensure accuracy, completeness, and reliability, no guarantee is made regarding the report’s accuracy or completeness. Readers should independently verify and assess the relevance and accuracy of the information provided before relying on it or using it for any decision-making purposes. Neither the authors nor Narrative Labs BV assume any liability or responsibility for any direct, indirect, incidental, or consequential damages arising from the use of, or reliance on, the information presented in this report. The information herein is subject to change without notice and does not constitute professional, legal, financial, or investment advice.