CSRD tips for small and medium-sized companies from pioneer Schijvens Corporate Fashion

Schijvens Corporate Fashion is a pioneer in sustainability and has a leading role in preparing for it CSRD taken over. Although the reporting requirement for small and medium-sized enterprises (SMEs) has not yet come into force, the Dutch family business that falls into this category has already published sustainability information in the last annual financial statements (fiscal year 2023/24).

In November, these efforts were recognized and rewarded with the inaugural CSRD Awards, and Schijvens was named winner in the SME category.

1. What do you think about the EU Sustainability Reporting Directive (CSRD)? Why has Schijvens decided to fulfill these already?

“I think it’s good that the CSRD legislation is coming,” says Rijnsdorp-Schijvens. “In today’s economy, most attention is paid to corporate profits and not enough attention to other important aspects such as environmental and social impact. The CSRD forces decision-makers – investors, banks and others who distribute the money – to also pay attention to what companies are doing for the world.”

Fulfilling CSRD reporting is a continuation of what Schijvens is already doing and also fits the company, as transparency is a core value, explains the commercial director.

“Schijvens has been creating a sustainability plan for at least ten years with insights into the supply chain – what things have been improved and what we still need to do – which we publish on our website,” explains the managing director. “We know who we work with, how much living wage we pay and what percentage of our products are organic or recycled. We also measure our carbon emissions, although the latter has yet to be added to the CSRD report.”

“Our sustainability reporting is not yet 100% perfect, but I think our openness was an important reason for receiving the award. “The CSRD could ultimately be freely translated as a transparency report,” she continues.

“I encourage everyone to be transparent because openness is the way forward.”

2. Why is transparency so important?

“In my opinion, transparency is essential because it builds trust and cooperation with customers, delivery companies and others stakeholders strengthens,” answers Rijnsdorp-Schijvens.

“In many sectors, such as the textile industry, companies do not allow themselves to be looked at. I think it’s an outdated way of doing business: ‘haggling’ makes me very antsy personally,” she says. “I want to know exactly how much a product costs so that I can explain this to my customers.”

“I still remember taking our profit and loss statement to customers and telling them that I wanted to make a few percent of net profit,” she reflects. “My father found it quite frightening at first (it was rather unconventional to be so open, editor’s note). What I want to say is: Our customers know what they are paying and why. We call this ‘true pricing’.”

Companies that do not strive for excessive profits could very easily be transparent, emphasizes the managing director. “Of course every company can earn something, after all, that’s why you do your best every day, but that doesn’t have to be at the expense of others in the supply chain. This is how I imagine the future/new economy.”

3. Regarding CSRD: How easy or difficult is it to provide the required sustainability information?

“CSRD reporting is less complicated than it seems,” emphasizes the commercial director. “We are a small company with a turnover of 35 million euros, and there are many comparable players in the industry. A small or medium-sized company is certainly capable of producing such a report if one stays calm and thinks about what the CSRD actually means. It is nothing more than knowing who to work with, why to work with them and how to work with them. And then asking questions in your own supply chain to make things measurable.”

“Ask a factory about the water bill and the number of products manufactured,” she gives a simple example. “Assuming 1000 liters of water were used and 1000 items were produced, then the water consumption is 1 liter per item. Then you can calculate how much your production cost: If you bought 200 pieces, your water consumption is 200 liters.”

The managing director calls it a disadvantage that many complicated terms are used in the CSRD. “The consultants benefit from this.” She warns against losing sight of what’s important. “It’s not about writing policies, it’s about people and the environment in the supply chain. I would therefore rather see companies spend their money on living wages for garment workers, the people behind the sewing machine, rather than on expensive advice.”

4. What are your tips and advice for other SMEs to get started with CSRD?

“CSRD is all about insights,” reiterates Rijnsdorp-Schijvens. “If you don’t have insight into your supply chain, you can’t report. This is why many companies with long supply chains and perhaps hundreds of manufacturing operations are hesitant to start CSRD,” she explains.

Schijvens has been working with the Fair Wear Foundation since 2010. “This forced us to record our supply companies, the sewing workshops.” The Fair Wear Foundation carries out factory audits in which it checks the working conditions in Tier 1, a term for the direct suppliers of the end product.

“This insight immediately led to strategic decisions,” says Schijvens. “We reduced the number of production sites from 300 to less than 50.”

“Will you still be competitive? Yes. If you choose companies that produce less, you become an important customer there. And the bigger you are, the more influence you have, which is useful when making change.”

“So if you haven’t recorded your manufacturing companies yet, start doing so immediately.” This can easily be done in an Excel file. “You can still buy software.”

Rijnsdorp-Schijvens also advises thinking further than Tier 1 now. “Don’t just shed light on the sewing workshops, but also look at other links in the chain.” In Tier 2, Tier 3 and Tier 4, which include the dyeing, spinning and weaving mills, everything must ultimately be in order and be carried out .

Also calculate the ecological footprint of products, advises Rijndorp-Schijvens. This could be more complex, “because a fashion company can have around 20,000 items and at least 10 product groups.”

“Start with the bestsellers” is their motto. “For example, take a polo shirt and compare the LCA (Life Cycle Assessment) of one from Turkey and one from China. We ourselves use Modint’s bAwear Score Tool for this purpose.”

Rijnsdorp-Schijvens recommends other SMEs watch the SER’s practical CSRD workshop videos.

She also says that Schijvens is working with Avans Hogeschool on a CSRD blueprint “in simple language” to make it easier for other companies to get started.

5. How do you see the future sustainability legislation coming our way?

“CSRD and due diligence (CSDDD) are closely linked to each other,” emphasizes Rijnsdorp-Schijvens. Due diligence, the process of identifying human rights and environmental risks in the supply chain, forms the basis: it must be in order before companies can prepare their reports as required by the CSRD. “It therefore feels strange that the CSDDD regulations will only have consequences for companies and organizations after the CSRD.”

Nevertheless, she is optimistic. “When I look at where we were in 2010 and how the industry has changed since then, I see that many steps have been taken – and are still being taken. For twenty years everyone looked the other way, but that time is over. I hope that we see the CSRD and other sustainability regulations not as a burden, but as an opportunity to further improve the industry and make a real difference.”

6. How do you look back on the past year and what are planned for 2025?

“One of the most important achievements of 2024 is the opening of three factories for women in Pakistan and one in India,” says Rijnsdorp-Schijvens. These factories offer women in countries where work is not a given for them the opportunity to participate in the work process. “I am glad that we were able to achieve this through persistence and intensive collaboration.”

In 2025 Schijvens will launch an online platform. “We want to connect the makers and wearers of clothing and increase the appreciation for garments by making the human effort visible. It’s exciting and I’m looking forward to it.”

During the Christmas season, the managing director is in Hong Kong for the annual meeting of Schijvens suppliers. “We meet with the entire team from the Netherlands and manufacturers from countries such as Turkey, India, Pakistan and China. Entire families are now involved,” she says enthusiastically. “It’s a moment of reflection: we celebrate successes, discuss what could be better and have fun. It’s nice to see how present people are and how they Purpose (the company’s higher goal, editor’s note).”

“Sustainability is just really fun. It’s such a shame that people perceive them as a problem or a cost. If I ever look back on my life, I will not think about the salary that was paid to me every month, but it is these things that have brought me happiness and contentment.”

Sources:
– Interview Shirley Schijvens, Managing Director/Co-Owner/Commercial Director Schijvens Corporate Fashion, December 11, 2024.
– AI tool ChatGPT 4o was used as a writing tool.