Small and medium-sized enterprises (SMEs) that align their business practices with sustainability requirements and regulations are well-positioned to thrive in today’s market. As Katja Keitaanniemi, CEO of OP Corporate Bank, notes, “SMEs that manage their ESG (Environmental, Social, and Governance) matters effectively now have a clear competitive advantage.”
The Importance of ESG for SMEs
The significance of ESG compliance is becoming increasingly evident. Statistics from OP’s Large Account Survey reveal that 56% of large corporations have had to change suppliers due to sustainability obligations, and 53% anticipate more changes in the near future. Over 80% of these companies feel pressure to tighten requirements related to their supply chains.
SMEs must recognize that securing future financing will increasingly depend on sustainable business practices and robust sustainability reporting. Legal requirements that currently apply to larger corporations will gradually extend to smaller companies as well. Preparing for these changes early is not only cost-effective but also strategically beneficial, allowing SMEs to make timely decisions in an evolving landscape.
Steps to Develop a Sustainable Development Strategy
- Assess Current Practices: Conduct a thorough assessment of current business practices and their sustainability impacts. Identify areas of strength and weakness.
- Set Clear Goals: Define clear, achievable sustainability goals that align with both regulatory requirements and business objectives.
- Engage Stakeholders: Involve key stakeholders, including employees, customers, and suppliers, in the strategy development process to ensure comprehensive and inclusive planning.
- Implement and Monitor: Develop an implementation plan with specific actions, timelines, and responsibilities. Continuously monitor progress and make adjustments as needed.
Experts Can be utilized to Improve Quality and to Help Push Things Forward
In a rapidly changing regulatory environment, staying updated with the latest laws and standards is challenging. Engaging experts can provide significant advantages:
- Keeping Up with Legislation: Experts stay current with legal changes, ensuring your business remains compliant.
- Objective Insights: External consultants can objectively assess your business, identifying both strengths and areas needing improvement.
- Broader Perspective: Specialists bring insights from outside your organization, often with a deep understanding of market trends and customer perspectives.
By leveraging expert knowledge, SMEs can develop robust, forward-thinking sustainability strategies that not only meet regulatory requirements but also enhance competitive positioning. In conclusion, creating a sustainable development strategy is not just a compliance exercise for SMEs; it is a strategic move that can secure financing, foster long-term growth, and provide a distinct market advantage. Engaging experts in this process can ensure that your strategy is both comprehensive and aligned with evolving industry standards.
Contact us if you want to discuss how your company can make sustainability a strategic asset.