Latest figures show that less than 8% of small and medium sized enterprises (SMEs) formally report on their environmental, social and governance issues and impacts (ESGs). No surprise really when these firms, and their staff, are being squeezed in every direction, leading to the vast majority seeing sustainability as a cost in time and money that could be better spent elsewhere. The idea of tackling problems like the climate crisis or discrimination can be overwhelming, and others simply don’t know where to start.
However, the World Economic Forum and other advisory bodies are increasingly stating the benefits to SMEs in making ESGs a priority. Particularly as new regulations are evolving fast to include ESG reporting standards, and these can determine the ability to trade or gain capital and contracts with bigger companies in the EU and beyond.
Although SMEs have a lot on their plates, the World Economic Forum states that “small and medium-sized enterprises (SMEs) are a force to be reckoned with. They make up 90% of businesses globally, create two out of every three jobs worldwide, support the livelihoods of over two billion people, and are indispensable to the smooth functioning of global supply chains.
Despite the jargon, ESG is about doing all you can to stop or minimise any harmful effects of your business on the environment. It’s about treating your staff and your customers fairly, without discrimination. And it’s about obeying laws and doing the right thing for the places and the people where you operate throughout your supply chain.”
So the key question is, how can SMEs gain the information needed to gather and collate the data necessary to comply with ever-changing legislation? One option is to access open-to-all digital platforms such as Open-es, self-described as “a unique platform, in which the component of sustainability data sharing is accompanied by a particular focus on the theme of growth and collaboration between companies, through a simple and flexible approach, suitable for all of them”. Another solution is to share knowledge with like-minded businesses and support each other on the journey.
