February 2025
In the face of fluctuating European regulations, GENEO Capital Entrepreneur's Mission Committee would like to reaffirm its strong and steadfast commitment to supporting entrepreneurs who are moving forward: those who are preparing the transition of their business model and putting sustainability at the heart of their strategy and risk management.
The dizzying scale of environmental and social challenges, and the acuteness of societal expectations, are shaking up established models. The cost of inaction is now higher than the cost of transitionfor companies and governments alike. While regulations can set the pace and demand transparency, the direction of the transitions to be carried out is self-evident, for objective economic and social reasons.
Our conviction is clear: companies that take the lead on sustainability today will be market leaders tomorrow.
A consistent, methodical approach to social and environmental issues enriches and secures the company's strategy.
As early as 2019, well before the CSRD, GENEO was structuring sustainability at the heart of business models via Positive Impact Plans. This methodology enables each company to position itself on one or more sustainable development objectives to differentiate itself through innovation and responsibility. Value creation through the development of sustainable offerings and risk management through the implementation of CSR progress plans are the two pillars of the transformation. This impact plan can be cascaded within the company through managerial objectives, with suppliers through a responsible purchasing charter, with customers through commercial cooperation, and with financiers through the contractualization of objectives, in particular. Any changes in European regulations will not alter our approach.
These transformation plans require time: as an "evergreen" investment company[1], GENEO offers entrepreneurs this long timeframe, which fosters serenity and ambition.
Regulation enables the economy to thrive when it is stable, simple and fair.
Budgets and energies should be concentrated on action plans, not on reporting, which should remain focused. Each company should concentrate on its specific and strong levers of action, and not get lost in the exhaustiveness of subjects.
GENEO's Mission Committee advocates a pragmatic approach for SMEs:
- A dual materiality matrix[2] which highlights the company's priorities for action, guiding it in its transformation and focusing action to generate sustainable growth and gain in resilience.
- A succinct action plan with objectives and a few impact indicators, demonstrating the company's progress year after year.
- CSR indicators, reflecting the company's commitment to material issues.
The European Union can make sustainability a lever for differentiation and leadership
GENEO's Mission Committee defends fair competition in the internal market
European companies have made considerable efforts to make the transition, and these efforts require consistency and recognition. But to persevere, they need a stable regulatory framework and fair competition within the European internal market. We stand up for :
- A Buy Responsible Act, with stronger integration of sustainability criteria in European public tenders
- A strengthening of the tools and resources deployed within the internal market and at its borders to neutralize competition from products and services that do not comply with the requirements imposed on European companies.
Europe can be proud of its values and the social and environmental efforts made by its companies. Let's raise standards, not lower them.
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[1] GENEO's evergreen model is based on an open-ended investment vehicle that provides long-term support for the growth of SMEs and mid-sized companies. Unlike traditional funds, it reinvests capital from divestments to support new projects, guaranteeing a long-term, flexible vision aligned with companies' needs.
[2] Dual materiality means that companies must assess their impact on the environment and society(impact materiality) as well as the effect of environmental and social issues on their own financial performance(financial materiality).
