1. Introduction

This chapter starts with a general description of government policy on the green transition¹⁾. Next, the purpose and method of this study are discussed. The chapter concludes with the structure of this publication.

1.1 Policy framework

European Green Deal

The European Green Deal is the European Union’s (EU) roadmap for making the EU economy sustainable (EC, 2019). The objective is to tackle climate change and biodiversity loss, reduce net greenhouse gas emissions 55 percent by 2030 and achieve climate neutrality by 2050. The European Parliament adopted the Climate Law to make these targets legally binding. “Fit for 55” is the title of a package of new and revised legislation on climate, energy, transport and taxation policies to implement the Climate Law and to reach the 2030 target (EP, 2023). The European Green Deal covers all sectors of the economy, including transport, energy, agriculture and food, buildings and industries (EU, 2019). The Green Deal focuses on several key areas (EP, 2023 and EC, 2023a):

Reducing emissions from industry, transport and other sectors
Boosting the circular economy, in which resources are used in a sustainable way, waste is minimized, and products are reused and recycled
Creating a sustainable food system
Restoring nature and preserve biodiversity to absorb and store carbon;
Increase higher shares of renewable energy and greater energy efficiency;
Renovate buildings to save energy and protect against weather extremes;
Financing the green transition.

Netherlands

As part of the European Green Deal, the reduction targets will be translated into national emission reduction targets. In turn, these will be translated into targets for business sectors, additional to previously set reduction targets (EZK, 2023).

In order to realize the green transition, a mix of policy instruments is used. For instance, the Dutch manufacturing industry is encouraged to invest in sustainability by pricing emissions through the European emissions trading system ETS and the national CO₂ levy. In addition, the Dutch government stimulates investments in sustainability with subsidies for innovation, scaling up and the roll-out of techniques for emission reduction, energy saving and circularity (EZK, 2023). Small and medium sized enterprises (SMEs) can apply for the subsidy scheme Improving Sustainability of SMEs (SVM). Subsidy schemes are also in place to stimulate the sustainability of non-residential buildings such as the Energy Investment Allowance (EIA) and the Sustainable Energy Investment Subsidy (ISDE) business. And by setting up zero emission zones for urban logistics and subsidies for zero-emission commercial vehicles (SEBA) or making inland vessels more sustainable (SRVB) enterprises are encouraged to invest in sustainable mobility (Rijksoverheid, 2023).

1.2 Purpose

Statistics Netherlands observes in society an increasing need for information on climate change and energy transition, environmental quality and circularity, and nature and biodiversity. Statistics Netherlands also observes the emergence of international and national policies and agreements on sustainable development in a range of domains. As the national statistical office, Statistics Netherlands is in this area too, responsible for supporting public debate, policy development and scientific research by providing unbiased, consistent and reliable statistics (CBS, 2023).

A call from statistics users for more up-to-date statistics and insight in business behaviour is observed among the information needs. This need may be fulfilled with the use of business tendency surveys (BTS) for four reasons. First, business tendency surveys are often an important source of high frequency data. Second, similar to all surveys, it allows for the collection of data which are generally not otherwise collected, such as behaviour (UN, 2016). Third, it allows to examine the correlation between business cycle developments and developments in the green transition at a micro-level with one instrument. And fourth, the production of statistics may cost society less when using an existing mechanism instead of setting up a new system. While business tendency surveys do not yet contribute to the measurement of sustainability, they currently do provide contextual information (OECD, 2021a).

This study focuses on the question: How can the BTS be used on a regular basis to monitor developments in the green transition of businesses?

As a partner institute at national level, Statistics Netherlands has carried out harmonised surveys of the Joint Harmonised EU Programme of Business and Consumer Surveys (BCS) since the 1960s. Four monthly surveys are currently conducted by Statistics Netherlands in the following areas: consumers (CTS), manufacturing industry (BTS), retail trade (BTS) and services (BTS).

Business tendency surveys

Business tendency surveys (BTS)²⁾ are tools for the assessment and analysis of economic development and fluctuations in the business cycle. They ask enterprise managers about the current situation of their business, their opinions on the economy, their plans and expectations for the near future (UN, 2015: pp. 1). Likewise, the European Commission’s Joint Harmonised EU Programme of business and consumer surveys is designed to gather information on the state of the economies in the EU and candidate countries. In this manner, business cycles are compared for economic and monetary union (EMU) management purposes.

Results of business tendency surveys are often used to construct composite indicators to track cyclical movements in a specific sector or in the economy as a whole (EC, 2023a).
The results of these surveys are used by various groups, such as businesses, analysts, banks, professional associations, policymakers and media. (UN, 2015: pp. 1, 6).

1.3 Method

Using personal and group interviews among statistics users, statistical information needs concerning the Green Deal were assessed by Statistics Netherlands in the winter of 2022/2023. The statistics users include government organizations, national institutes for policy analysis, universities, professional associations and banks. A number of interviews indicated a need for more up-to-date statistics and insights in business behaviour about the green transition.

On the 14th of March in 2023, Statistics Netherlands organised a Green Deal Workshop. An expert poster session on measuring sustainability with BTS provided opportunity to discuss and gather input from the participants. Specific input was later gathered among government organizations.

Keeping the information needs in mind, literature was studied as a next step to provide the methodological principles and rationale for BTS-questions on the green transition and its implementation. Feedback from subject-matter experts at Statistics Netherlands was gathered and incorporated into this study.

1.4 Structure

This publication is structured in the following manner. Chapter 2 provides general requirements for developing statistics by Statistics Netherlands, and in particular requirements about business tendency surveys. Chapter 3 provides the concepts and rationale used in the development of the questions. Based on those concepts, chapter 4 provides the developed questions in English and Dutch. Chapter 5 provides guidance in the implementation specific to the business tendency surveys of Statistics Netherlands.

¹⁾ This study uses the terms green transition, greening and sustainability interchangeably to refer to the net-zero transition, business practices to reduce the environmental footprint of production and businesses incorporating green practices and improving their sustainability performance.
²⁾ Also called business sentiment, business opinion, business climate or business outlook surveys.