Have you ever thought of your company’s sustainable positioning?

In today’s business landscape,  Environmental, Social, and Governance (ESG) practices are no longer a niche concern, but a central pillar of corporate strategy. Whether you're an SME or a global enterprise, ESG defines how your company interacts with the three Ps: planet, people, and principles(opens in a new window). But where do you stand, as a company, on this journey? And, more importantly, do you move forward with authenticity for system change?

What is ESG, really? 

At its core, ESG is a framework for responsible business. It encompasses a company’s social, environment, and economic impact: 

• Environmental: Climate change, carbon emissions, energy efficiency, pollution control, water usage, conservation, waste management. 

• Social: Diversity, equity, inclusion, employee well-being, customer satisfaction, labor standards, human rights, community engagement. 

• Governance: Transparency, accountability, shareholder rights, board diversity, risk management, ethics, and anti-corruption. 

These pillars are interconnected. A company that reduces its carbon footprint but ignores labor standards is not truly sustainable. ESG is about balance, integration, and long-term impact. 

Why does ESG engagement matter? 

Companies are increasingly expected to demonstrate their ESG commitment. Not just to regulators, but to employees, customers, and investors. According to Simon-Kucher Sustainability Study (2023)(opens in a new window), only 15% of European and American consumers are not interested in buying and/or paying for sustainable products. That leaves 85% of consumers who are all, to varying degrees, interested in purchasing sustainably.  

Yet, many organizations still find themselves asking: How engaged are we with ESG? 

Here’s a simple scale to self-assess your own journey: 

1. I have no idea 

2. Basic awareness, no formal practices 

3. Some ESG-focused initiatives 

4. Regular ESG-focused meetings and reporting 

5. Fully integrated into business strategy 

This scale is about clarity. Knowing where you are helps you define where you want to go. 

The risk of greenwashing and green hushing 

As ESG gains traction, so do its pitfalls. Two major risks you might encounter are greenwashing and green hushing. While greenwashing involves making misleading claims about your environmental impact, green hushing is the act of staying silent about sustainability efforts to avoid scrutiny or accusations of hypocrisy. 

Case in point: Flixbus in Belgium 

In Belgium, Flixbus came under scrutiny for making misleading environmental claims on its website, which ultimately led to legal consequences. The company had advertised its coaches as “the most environmentally-friendly means of transport”, a statement that lacked sufficient evidence and comparative data. This claim was particularly problematic because it included references to the Flixtrain, a service that doesn’t even operate in Belgium, making the assertion not only misleading but also irrelevant to the local context. 

Additionally, Flixbus offered customers the option to offset their CO₂ emissions during booking. However, the company failed to provide transparent information about how these offsets were calculated or implemented, raising further concerns about the credibility of its sustainability messaging. 

The Belgian Economic Inspectorate flagged these issues, and the case eventually led to a ruling in Germany, where Flixbus was ordered to remove the misleading claims. This incident serves as a cautionary tale for companies operating across borders: sustainability communication must be both accurate and locally relevant. It also highlights the growing vigilance of regulators and the importance of transparency in ESG efforts. 

While specific Belgian companies haven’t been publicly named for green hushing, it is believed that the trend is growing, especially among SMEs: many SMEs are investing in ESG but don’t communicate it, fearing reputational risk if their efforts are seen as insufficient. 

In any case, both approaches erode trust. In a world where transparency is currency, silence or spin can cost more than speaking up honestly, even if your journey is imperfect. 

The four levels of sustainability positioning 

To move from awareness to leadership, companies must therefore understand their sustainability positioning. Here’s a framework to guide your thinking: 

1. Compliance-driven 
   Focused on meeting legal requirements. No strategic or marketing integration. 

2. Pragmatic performer 
   Tackles key sustainability challenges. Communicates actions taken, but not yet embedded in core strategy. 

3. Strategic integrator 
   Sustainability is part of the business DNA. It influences products, services, and brand identity. 

4. Frontrunner 
   Leads holistically. ESG is embedded in every aspect of operations, communication, and innovation. 

This framework is especially useful for SMEs, which often have the ability to innovate quickly.  

A prime example as a frontrunner is Shayp, a Belgian startup using IoT to reduce water waste in buildings. By integrating ESG into their daily operations and delivering an impact solution, it also offers a free support program to schools in the Brussels-Capital Region. Shayp exemplifies how a small company can lead with purpose, proving that size doesn’t limit sustainability leadership. 

Note also that this positioning isn’t linear or rigid. Companies may operate at different levels across departments (or regions for bigger companies). The goal, however, is to move intentionally toward integration and leadership. 

Sustainable positioning: more than a trend 

Sustainable positioning means aligning your brand and strategy with ESG values. It’s therefore not just about doing good. It’s about doing well by doing good. Companies that lead in sustainability attract top talent, build customer loyalty, and future-proof their operations and procedures. 

But it starts with honesty. Where are you today? What challenges do you face? What stories are you ready to tell? 

Final thought: authenticity over perfection 

ESG is a journey, not a destination. Whether you're just starting or already leading, the key is authenticity. Share your progress, own your gaps, and commit to continuous improvement. In a world hungry for real change, your transparency is your greatest asset! 

Start your ESG reporting 

As ESG reporting becomes a growing expectation, especially from larger clients, Belgian SMEs must prepare to meet both the substance and transparency demands. Solutions like Kube can help simplify this process, making reporting accessible, credible, and aligned with evolving standards. 

Will you rise to the challenge?