Sustainability is no longer a niche concern—it’s a defining principle for modern business. From startups to global enterprises, companies are under increasing pressure to reduce their environmental impact, meet stakeholder expectations, and future-proof their operations. In this comprehensive FAQ guide, we explore the most frequently asked questions about sustainable business practices and offer practical insights to help you turn intention into action.
1. What does sustainable business mean?
Sustainable business refers to the integration of environmental, social, and economic responsibility into the heart of a company’s strategy and operations. It goes far beyond switching to recycled packaging or donating to a local charity—it’s about creating long-term value while minimizing harm to people and the planet. In essence, sustainable businesses balance profit with purpose, aligning their success with broader ecological and societal well-being.
Read more about what sustainable business means.
2. What’s the difference between CSR, MVO, and ESG?
These three acronyms often circulate in the same conversations, but they represent different approaches. CSR (Corporate Social Responsibility) and its Dutch counterpart MVO focus on the voluntary efforts of businesses to act ethically and contribute positively to society. These are often seen as add-ons to existing operations.
ESG (Environmental, Social, and Governance), on the other hand, provides a structured, measurable framework. It’s used by investors, regulators, and corporate boards to evaluate companies’ sustainability performance through standardized metrics. While CSR and MVO are narrative-driven, ESG is data-driven. Curious which approach fits your business best?
Explore the full comparison of CSR, MVO and ESG.
3. Why is sustainable business important for companies?
Sustainable business is not just about doing good—it’s about doing well. Embedding sustainability in your organization enhances resilience, reduces risk, and often leads to financial gain through efficiency and innovation. Consumers increasingly prefer brands with a conscience. Investors seek companies with clear ESG performance. And governments are rolling out stricter sustainability regulations. By acting now, companies not only protect the planet, but also strengthen their competitive advantage.
Here’s 10 reasons why sustainability is a smart business move.
4. How do I create a sustainability strategy?
A sustainability strategy provides a clear roadmap for reducing negative impact and maximizing positive change. It typically starts with a materiality assessment to identify what matters most to your business and stakeholders. From there, you define measurable goals—such as reducing emissions, improving supply chain transparency, or enhancing employee wellbeing. Crucially, a good strategy aligns with international frameworks like the UN’s Sustainable Development Goals (SDGs) or the Global Reporting Initiative (GRI), and includes a transparent reporting mechanism. Want to dive deeper?
Learn how to build a sustainability strategy in 5 steps.
5. How do I measure sustainability in my company?
Measuring sustainability is critical to progress and credibility. Businesses use ESG scorecards, carbon accounting, lifecycle assessments, and stakeholder surveys to quantify their efforts. Tools like the GRI Standards or the B Impact Assessment can help you track performance over time. Importantly, measurement should go hand-in-hand with reporting to ensure transparency. Accurate data not only builds trust with stakeholders—it enables smarter decision-making.
Read how to measure sustainability effectively.
6. How can I talk about sustainability without greenwashing?
Greenwashing—misleading claims about environmental efforts—is one of the fastest ways to lose stakeholder trust. To avoid it, focus on substance over slogans. Back your claims with verifiable data, third-party certifications, and transparent progress reporting. Don’t overstate your impact or hide inconvenient truths. And above all, make sustainability part of your core operations, not just your marketing.
Here’s how to communicate sustainability authentically.
7. What does it mean to be carbon-neutral or climate-neutral?
Carbon-neutral businesses balance their greenhouse gas emissions by reducing what they can and offsetting the rest. Climate neutrality goes a step further by including all greenhouse gases, not just CO₂. Achieving either status involves three key steps: measuring your emissions across Scopes 1, 2, and 3; taking action to reduce them internally; and then offsetting any unavoidable emissions with verified credits. For many companies, this is a crucial part of their net-zero roadmap.
Learn what it means to be carbon- or climate-neutral.
8. What is a sustainability-linked loan?
Sustainability-linked loans are financing instruments where the interest rate is tied to your company’s sustainability performance. If you meet agreed-upon ESG targets—such as reducing carbon emissions or improving diversity—the financial terms become more favorable. These loans are gaining popularity as they align financial incentives with environmental and social outcomes. They’re especially relevant for companies looking to link sustainability with bottom-line impact.
Read more about how sustainability-linked loans work.
9. How do I integrate sustainability into my business strategy?
Sustainability should be baked into your strategy, not sprinkled on top. It begins with a clear understanding of how environmental and social issues affect your core business. From there, you define shared goals across departments, embed ESG targets in management KPIs, and ensure sustainability informs every major decision—from supply chain planning to product development. When done right, sustainability becomes a driver of innovation and long-term growth.
Explore how to make sustainability strategic.
10. What sustainability laws apply to my business?
The regulatory landscape is evolving fast. Companies operating in the EU will soon be subject to the Corporate Sustainability Reporting Directive (CSRD), requiring in-depth ESG disclosures. The EU Taxonomy helps determine which activities count as “green,” while the Green Claims Directive aims to crack down on misleading sustainability marketing. Understanding and preparing for these frameworks is essential—especially for businesses with international operations.
Stay informed about sustainability regulations.
11. What subsidies and funding are available for sustainable business?
Governments and financial institutions are increasingly offering support to businesses investing in sustainability. This may include green loans, innovation subsidies, tax deductions for energy-efficient equipment, and funding for circular economy projects. For example, in the Netherlands, the MIA and VAMIL schemes offer significant fiscal benefits. Accessing these resources can dramatically reduce your upfront costs and increase ROI on sustainability investments.
Explore funding options for sustainable business.
12. Where should I start with sustainable business?
Every journey begins with a single step. If you’re new to sustainability, start by conducting a quick scan of your environmental and social footprint. Identify the areas with the biggest impact—and the most immediate opportunities for change. Involve your team early, set realistic goals, and track your progress over time. You don’t need to solve everything at once. What matters is building momentum.
Here’s how to get started with sustainable business.
13. What role do employees play in sustainable business?
Your employees are not just participants - they can be catalysts. Engaging them in your sustainability efforts drives internal alignment and unlocks new ideas. Training programs, green teams, and open innovation channels allow employees to contribute meaningfully. More importantly, embedding sustainability into your culture boosts morale and retention. A sustainable business is a people-first business.
Read more about how People, Planet & Profit interact.
14. The top 5 partners for sustainable entrepreneurship.
Building a sustainable business doesn’t happen in isolation. The right partners can accelerate your impact, provide expert guidance, and connect you with tools, funding, and networks that support long-term change. Whether you’re looking to reduce your carbon footprint, improve ESG performance, or develop a circular business model, these five organizations stand out as trusted allies in the journey toward sustainable entrepreneurship.
Discover the 5 best partners for companies in 2025.
Ready to take action?
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