Until recently, environmental information requirements were limited almost exclusively to large companies required by regulations to report on their impact (ESG report). However, this dynamic is changing quietly but steadily: more and more small and medium-sized enterprises, despite not being directly required to do so by law, are receiving requests from customers or large companies asking them for specific data on the origin of their materials, their energy consumption or their waste management practices. Companies that are not prepared to respond to these requests may jeopardize a business relationship or miss out on the opportunity to access new contracts.
Why are these requests being made?
The reason for this change is simple: large companies that are required to report on their environmental impact — either due to European corporate reporting regulations or voluntary sustainability commitments — also need data from their entire supply chain in order to prepare their reports. Since a significant part of their environmental footprint comes from the products and services they purchase from third parties, they pass this need for information on to their suppliers, regardless of their size.
This means that a small company may find itself, without actively seeking it, responding to sustainability questionnaires simply because it is part of a larger customer’s supply chain. And this trend, far from being temporary, is set to intensify in the coming years as more companies take on these types of reporting obligations.
What type of information is usually requested?
Although each customer may set out its own requirements, there are certain categories of information that are frequently repeated. The first concerns the raw materials and materials used: their origin, whether they come from certified sources, or what proportion consists of recycled or reused materials. The second category refers to the resources consumed as part of the business activity — energy and water — and the waste generated, including how it is managed and what percentage is recycled.
Transport and logistics constitute another common category, particularly when there are several intermediate suppliers between the raw material and the final product, as the distances travelled directly affect the associated carbon footprint. Finally, it is not uncommon for companies to request information on existing certifications, internal sustainability policies, or evidence of good labour and environmental practices within their own supplier chain.
Traceability: knowing where everything comes from
One of the concepts that appears most frequently in these types of requests is traceability: the ability to track a product or material through the different stages of its production and distribution. It is not simply a matter of knowing which supplier provided a material, but of being able to document, if necessary, where that supplier sources it from, what processes it has undergone, and what environmental or labour conditions were involved along the way.
For an SME, improving traceability does not necessarily require sophisticated technological systems. Often, it is enough to keep an organised record of suppliers, documentation of origin and available certificates, so that this information can be retrieved quickly when requested, rather than having to reconstruct it in a hurry every time a request is received.
How to start preparing
The first reasonable step is to take an inventory of the information the company already has — invoices, certificates, supplier technical data sheets… — and identify any gaps in relation to the information categories mentioned above. From there, it is advisable to establish a more systematic relationship with your suppliers, regularly requesting the data that will foreseeably be needed later, rather than asking for it only when a customer urgently requires it.
Taking this approach in advance not only avoids awkward situations with certain customers, but also improves the company’s internal understanding of its own supply chain, which often reveals opportunities for improvement that had previously gone unnoticed.
So, how can the Galician Economic Office help me in the area of CIRCULAR ECONOMY AND SUSTAINABILITY?
The Circular Economy and Sustainability support and advisory service offered by the Galician Economic Office is designed to support your company across a wide range of areas, providing agile and personalised solutions tailored to your specific needs. The experts involved in the programme will work closely with your company to analyse your operations, identify areas for improvement and design effective implementation strategies. Request your free advisory service.
