This article talks about 10 trends to watch on the Environmental side of ESG.
For SMEs (small to mid-sized enterprises), these are the five of greatest importance:
- Increased supply chain efforts – There will be more downward pressure from your large clients, demanding you become sustainable in order for them to meet their mandates
- Focus on Private Company Emissions – There will be more interest and attention paid to private company emissions. This ties back to the first point, where your bigger clients are mandated to demand you develop your sustainability program.
- Standardization of Reporting – Again, tied to the above two points, you will need to use a globally-accepted program for your sustainability certification and reporting of emission data.
- A Broader Climate Lens – Consumers (B2C and B2B) using their purchasing decisions to show their demands and reward SMEs that can prove they are sustainable and have an emissions plan.
- Environmental Concerns Translate to Risk – For SMEs that delay becoming certified sustainable, risks will be greater – higher cost of money; government policy changes could negatively impact the ability to operate and compete; consumer demands will become harder to ignore; and investors will become less willing to fund.