Why is ESG important in the tendering process?

Have you integrated the latest ESG criteria into your business strategy? To avoid missing out on contracts, you must complete this step.

Contractors have to meet increasingly complex transparency requirements. They're liable for the environmental and social impacts of their activities, which also includes their supply chain.

When organizations integrate environmental, social and governance (ESG) criteria into their calls for tenders, they commit to working with suppliers that comply with regulatory, societal and financial expectations. They also limit their own reputational and litigation risk.

Meet regulatory requirements

ESG criteria are now a reality for several key sectors including infrastructure, energy, transportation, food, real estate and finance. They've become commonplace and even mandatory in certain contexts.

In public calls for tenders, compliance with certain legislation is a preselection criterion.

• The Fighting Against Forced Labour and Child Labour in Supply Chains Act;
• European legislation governing vigilance requirements;
• Mandatory environmental certification;
• Equity and transparent governance policies.

As a result of these regulatory changes, ESG criteria are not only a competitive advantage, but also a qualification criterion.

Demonstrate credibility

An organization equipped with a strong ESG policy is viewed as being structured, forward-looking and trustworthy. For contractors, this demonstrates your ability to:

• Apply responsible practices;
• Effectively manage risks;
• Respect contractual obligations;
• Anticipate regulatory changes.

Contractors prefer to work with business partners that share their values and seek strategic alignment with ESG criteria. This approach also allows them to select long-term partners.

Choose the right partners at every level of your supply chain

Your ESG compliance isn't restricted to your company's activities. Contractors will assess your organization based on your entire ecosystem, which includes suppliers, subcontractors and partners.

The broad scope of this responsibility is due to several factors.

• Regulations require full supply chain traceability;
• Assessment grids include specific criteria relating to partner compliance;
• Contractors seek to avoid reputational risk as a result of questionable practices in their supply chain.

How can you prepare a winning ESG strategy for calls for tenders?

Turn your ESG commitments into a competitive advantage for contract bids. A convincing strategy requires two elements: structured documentation and tangible proof.

Take time to structure your ESG policy

Begin with an executive summary of no longer than a page that outlines your commitments. Then divide your report into three sections (one for each ESG pillar) and align each section with specific criteria in the call for tenders.

Adapt your approach to specific requirements

• Carefully analyzing the required ESG criteria and adapting your presentation as a result;
• Pinpointing the weighting for each ESG (environmental, social and governance) criterion;
• Using the vocabulary and references shown in the call for tenders.

Can SMEs compete?

Absolutely. ESG criteria are often proportional to the assignment's size and scope. An SME that demonstrates an authentic and properly documented approach can compete with large companies.

Transparency and continuous improvement are more valued than resource volume. Assessors appreciate an honest approach that recognizes challenges and outlines a credible plan.

Avoid common traps

• Replace vague statements with specific facts and verifiable statistics;
• Don't overstate your performance. Honesty is better than exaggerated claims;
• Ensure that your statements can be verified. Contractors sometimes conduct audits.

Plan for the future

A strong ESG policy can't be drafted in a few weeks. You should start documenting your practices and formalizing your commitments today.

Invest in an authentic and thoughtful ESG approach. Organizations that truly integrate these criteria are better positioned for demanding calls for tenders and sustainable partnerships.

Call on our team of experts who can support you throughout the process.