Learn from the Sustainability Reporting Guidelines for Municipalities​

ESG reporting for municipalities is the practical way to turn sustainability goals into measurable results. More and more municipalities want not only to promote sustainability but also to make it measurable. At the same time, they see companies facing growing pressure from new European regulations such as the CSRD (Corporate Sustainability Reporting Directive), which requires organizations to report on environmental, social, and governance topics.

Although this legislation does not apply to public organizations, municipalities are closely connected to the same themes. They want to lead by example and speak the same language as the companies they work with.

The question, then, is: how can a municipality approach sustainability reporting without a legal framework?

That’s where the Sustainability Reporting Guide for Decentralized Governments comes in. Developed by the Coalition of the Willing, a collaboration between municipalities, provinces, water authorities, knowledge institutions, and the VNG (Association of Dutch Municipalities). This guide helps municipalities bring insight and structure to their ESG policies in a practical way.

Recommended Steps for ESG reporting for municipalities

The guide translates the principles of ESG and CSRD into the municipal context. It’s not a mandatory format, but a toolkit that allows municipalities to build their own sustainability reports step by step.

The emphasis is on pragmatism, use what you already have. Municipalities typically possess plenty of relevant data, from energy use to social indicators. But, it is often scattered across departments and reports. By bringing this data together, municipalities can create a clear picture of their social impact and sustainability progress.

The guide is deliberately flexible, suitable for both small and large municipalities. Its goal is not compliance, but insight, to understand policies, performance, and opportunities for improvement.

Key Data Points

The guide identifies core themes that form the foundation of sustainability reporting:

• CO2 emissions
• Energy use in municipal buildings
• Waste separation
• Water consumption
• Biodiversity
• Health
• Social inclusion
• Poverty
• Good governance

Many of these data points are already being tracked within municipalities, for example through policy reports or local monitoring systems. The challenge is not to collect new data, but to connect and visualize what’s already there.

This approach not only clarifies where a municipality performs well, but also highlights risks and opportunities for improvement. For more complex topics, such as Scope 3 emissions or biodiversity, the guide encourages a step-by-step approach to further develop reporting maturity.

Recommended Steps

The guide outlines a clear process for developing a sustainability report that fits the specific context of each municipality:

• Preparation: build political and administrative support and define the scope: which departments and themes are included?
• Materiality: identify which topics truly matter, both in terms of societal impact and importance to citizens and partners.
• Data Exploration: collect available data and link it to the indicators proposed in the guide.
• Goal Setting: translate policy ambitions into concrete, measurable objectives.
• Data Management: set up processes for reliable data collection, verification, and updates.
• Reporting: prepare a clear, accessible report connecting results to policies and goals.
• Evaluation and Improvement: use feedback and new insights to strengthen the process each year.

These steps make the process manageable and help municipalities gradually build their internal reporting capacity.

Putting It into Practice

The first step is often simpler than it seems. Start with a single, concrete, and measurable theme. For example, CO2 emissions or energy consumption. This quickly generates valuable insights and helps build internal support.

Tools like Ecocharting can support this process by mapping context, identifying material topics, and structuring results in clear, visual reports. Especially in the early stages, this brings structure and consistency without turning the process into bureaucracy.

Slutsats

Det Sustainability Reporting Guide for Decentralized Governments offers municipalities a practical and realistic framework to take ESG action. By using existing data wisely, working step by step, and linking sustainability to existing policy, reporting becomes both achievable and meaningful.

Municipalities that start today not only strengthen their own insight and management but also their role as an example for businesses and citizens. This way, sustainability grows into a natural part of good governance.

Want to know how Ecocharting can support your municipality with ESG and sustainability reporting? Titta på webinariet på begäran nu:
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