Contents3INTRODUCTION4CHAPTER 1: HOW CLARITY CREATES CAPITALHow your sustainability reporting can increase your profits,boost your reputation, increase loyalty to your brand, andhelp you comply with upcoming regulations.8CHAPTER 2: SMALL STEPS TO A STRONGSTANCEYou won’t get to comprehensive sustainability reportingovernight. But you can get started with just two data pointsand the right partners to guide the way.13CHAPTER 3: FROM MAZE TO AMAZINGThe data you need for comprehensive sustainabilityreporting is scattered across your organization andsystems. We’ll help you gather it all up and use it properly.18CHAPTER 4: NAVIGATING THE NEW NOWWith all the new regulations coming down the pipeline –many of them not yet finalized – it’s a challenge to knowwhere to focus, or why. We’ll show you here.23CONCLUSION25REGULATION GLOSSARY IntroductionIt’s hard to go anywhere these days without hearing aboutsustainability. As citizens, we’re encouraged to do our part tocontribute to a healthier planet. As consumers, we increasingly see‘green’ labels and make choices about the products that we hopewill have a positive impact. Our Future Shopper surveys consistentlysupport this, most recently confirming that 62% of consumers globallyfavour the purchase of products that come with a sustainabilitycertificate.In business, the sustainability question goes far beyond saving theplanet. It can also impact your brand and profitability. Making the rightchoices today can lead to higher profits, more loyalty for your brand,and a stellar reputation for your company.The time to start exploring and improving your footprint is now. Withregulations expected to come into effect any day, there’s no time tolose. The risks of inaction go far beyond non-compliance. If you’re notmoving towards more sustainable operations, you’ll leave profits onthe table and your customers will go elsewhere.You don’t need to face this challenge alone. You can delivertransparent sustainability reporting, grab up those coveted ‘green’labels, and stay ahead of the competition more swiftly and efficientlythan you think. All you need is a great plan and the right partners.That’s why VML’s experts wrote this paper. It outlines what you needto know about how to navigate the complex world of sustainabilitydata and reporting in the coming year. Let’s dive in. Carine ThomasSustainable ShelfMaster Lead at VMLCarine Thomas graduated from the London College of Fashion,University of the Arts London in BA Fashion Design and PGDip FashionArtefact, and has an MSc in Entrepreneurship Management andInnovation at the University of Bath in progress. Today, Carine worksat VML NL as Senior Business Consultant and leads the SustainableShelfMaster team, advising brands on strategic, tactical and operationallevel.Yoni TehubijuluwBusiness Analyst at VMLYoni Tehubijuluw, a double alumnus of VU Amsterdam, holds both aBachelor’s and a Master’s degree in Information Sciences. Transitioningfrom an ERP consultancy background, Yoni currently serves as a PXMBusiness Analyst at VML NL, aiding brands in implementing PXMsolutions and optimizing their data resources. In collaboration withCarine, Yoni is focused on advancing the Sustainable ShelfMaster,aiming to help brands reduce their carbon footprints through data-driven strategies. 3 How Clarity CreatesCapitalExamining and improving the sustainability of youroperations may just feel like an added expense andhassle with very little reward. But our research showsit’s the key to your competitive edge.Chapter 1: The many ways it pays to work onsustainabilityIt’s becoming a bit of a pattern. We talk about the importance ofsustainability as a business practice, and the room goes quiet.CMOs and Sustainability Leads know they need to eventuallyaddress their own sustainability and transparency on the topic, butother priorities seem more urgent. They’ll be ready to talk aboutsustainability next quarter, or maybe next year.But there are plenty of reasons to be talking about your company’sefforts to be transparent about the sustainability of your business.Every day you wait is another day you’re leaving all kinds of capital– revenue, customer loyalty and competitive edge – on the table.Will you be prepared to snatch it up? Or will you be satisfied playingcatch-up when you’re finally forced to?Every day you wait is another day you’re leavingrevenue, loyalty, and competitive edge on thetable. You’ll increase profitabilityYes, you read that right. We’re starting with the message that mightbe most surprising. When most executives think about sustainability,they see high price tags and minimal reward. But there is plenty ofevidence that your efforts to be more sustainable have a direct impacton profitability. You can read about it in this blog about the ROI ofSustainability.Among the resources in the blog is a report from theWorld Economic Forumthat shows that ethical supply chain practicescan boost revenue by up to 20% and reduce costs by up to 16%.Additiona