The G-SIB are 30 global banks whose failure poses disproportionate risks to the global economy and whose assets represent nearly 63% of global banking assets as of year-end 2021.  The list is shown on Table A1 of the attached Board of Governors of the US Federal Reserve report that discusses what these banks are doing about climate change.

In short

• Most have committed to fully offsetting their emissions by mid-century – Therefore, they have made the commitment
• They are only beginning to measure financed emissions due to their loans and investments, which are the vast majority of their emissions – So, their downstream requirements will increase
• They have committed to increase green financing and are doing so – Sustainable / carbon neutral / net zero companies will benefit from this
• They are short of time – Programs will be accelerated

Why are the G-SIB members engaged in climate issues?

• The climate landscape is rapidly evolving via new regulations, enhanced societal preferences and technology advances
• This shifting landscape will create winners and losers
• The G-SIB members are therefore assessing risk and opportunity associated with climate change

Likewise, climate regulations are increasing all over the world

• The Task Force on Climate-Related Disclosures now has 859 financial firms, including all G-SIBs, totaling $175t
• Governments are imposing stricter emissions standards
• The UK now requires its large companies to report their climate risks and opportunities
• The EU has its new emissions laws
• Japan has its new emissions laws
• The US SEC is preparing to publish its new laws
• Major governments are assessing climate risk via stress tests
• It is predicted that by the end of this year, the majority of the world’s economies will have climate/sustainability components in their monetary policies

What does all this mean for you?

• This is moving very fast
• As the governments and G-SIB members squeeze down, the influence of climate and sustainability increases on the cost of money
• This cost of money influence can be managed by vendor selection (as you are part of their Scope 3 emissions)
• This will accelerate vendors being replaced by sustainable companies
• This brings us back to the G-SIB review of the shifting landscape that will determine winners and losers
• Given that they have already committed to net zero, and the effort to achieve same, and assessed the risks of not pursuing same, their tolerance for downstream users of their funds that are not equally committed will likely be small

Per this BizCommunity article, below are the four trends that will influence SMEs in 2023.

We then add our comments to each.

• Women-led ventures breaking barriers

• ESG and social entrepreneurship

• The fourth industrial revolution

• Storytelling for SME incubators and support programs

Besides being one of the four, as you would suspect, we see sustainability being an anchor of the other three.

For women led-ventures, or any smaller company that is new to a sector and short of cash, becoming certified sustainable is a wonderful way to cost-effectively take consumers away from established competitors, as 7 out of 10 consumers will move their business to a certified sustainable company.

As to the fourth industrial revolution bringing a new era of innovation in technology, sustainability is a core component for any company looking to cost-effectively scale any aspect of its operation.  From the use of alternative energy, to hybrid work environments, to less travel, to faster software, to reusable equipment, to hiring/retaining better talent, any organization looking to advance and scale with new technology needs sustainability as an anchor.

Finally, as to storytelling for SMEs, given that 9 out of 10 consumers want your company to be certified sustainable and 7 out of 10 will move their business to a certified sustainable company, there are few stories that will generate more impact for a company than to talk about becoming certified sustainable and being able to continue talking about your ongoing Green Team sustainability projects.

Per the study in this report, if you have a startup or scale-up and your organization is aligned with the UN’s SDGs (Sustainability Development Goals):

• You are less likely to fail
• Funding for SDG-relevant startups has doubled in just the past two years
• You are more likely to raise a Series A round of funding
• You will raise 2-3x the funds of your non-sustainable peers

Net, it is never too early to become certified sustainable.  Further, if you select the right team to help you with the SDGs, as discussed here, and select the right program, as discussed here, it will help you develop your team and help you cost-effectively differentiate your new company from your more established competitive peers.

Per this article in Entrepreneur Magazine

• Customers support brands that prove they have sustainability and environmental beliefs.
• Investment groups are supporting sustainable companies.
• Employees want to be happy, engaged and productive and purpose-driven companies help them achieve these goals.

They go on to say, you don’t have to sacrifice sustainability for profitability or visa-versa.  You can have both at the same time. 

Here are three suggestions they make; and we agree with all three:

• Talk more about your sustainability initiatives in your market effort – With the caveat that you are certified sustainable and not greenwashing, we completely agree with this. As we have reported, consumers want to move their business to certified sustainable companies.  When you talk about your sustainability programs, good things happen internally and externally.  Given that we are ranked as the world’s top sustainable voice/influencer, and we help our clients promote their sustainability certification, the actual marketing value we bring to clients, beyond the certification value, is 3x (within the first few months) – 9x (over the life of the ads) the cost of the certification.  In other words, the ROI for our clients, just in marketing, is 3x – 9x the cost of the entire certification. 
• Make clear that you are not sacrificing sustainability for profit or profit for sustainability – Again, we agree. Speak to the fact that you intend to be certified sustainable and make more money.  In point of fact, certified sustainable companies make more money than their non-certified peers, so be assertive that you can walk and chew gum at the same time by being able to make more money while also helping the environment and your community.
• Hire experts that can guide/advise/assist with the effort and align with your goals – Again, we agree. You don’t have to be a sustainability expert.  Bring in advisors who not only understand sustainability, but also understand how to marry sustainability and profitability.  

If you are thinking about how to do the above and what to do next, we recommend reading this PPP.  If you follow the 8 elements of a good sustainability program you will be happy.

This article, titled “ESG no longer a choice, but a necessity, say CEOs at women’s summit,” is a summary of comments at the 2022 Global Summit of Women in Bangkok.

Key points:

• Covid has caused people around the world to demand social responsibility from companies that exploit resources from nature and advantages from society;
• ESG provides more advantages to boost profit and competitiveness than programs like CSR (corporate social responsibility);
• 74% of consumers are willing to spend on goods/services that comply with an ESG strategy, making ESG no longer an option, but a necessity for companies;
• Companies are adopting ESG due to demand from consumers, investors and regulators;
• Companies need to motivate staff to show mutual respect for the rights of others;
• A company’s sustainability responsibility does not stay inside the walls of the company, but includes the community the company serves.

If 74% of consumers are willing to spend on goods/services that comply with an ESG strategy, making ESG no longer an option, but a necessity….and for these bigger organizations to meet their sustainability/ESG/carbon neutral requirements, they need their vendors to also be sustainable….is this an opportunity for small to mid-sized enterprises?  And, if it is an opportunity, or necessity, is there a program that is affordable (both in money and time)?

Yes, it is an opportunity/necessity.  Large companies are required to use certified sustainable companies when available.  This is one of the reasons certified sustainable companies are growing 75% – 20x faster than their non-certified peers.

Yes, there is a program that is designed specifically for SMEs.  Here is a PPP to guide you.

Edenark Group, which offers an environmental sustainability certification program (the Edenark Group ISO 14001) internationally known for credible quality improvements, and Before3020, Inc., a global Public Benefit Corporation, a firm comprising of doctoral-prepared changemakers who engage with clients to create sustained financial and social outcomes for them by aligning their strategies and operations with the UN Sustainable Development Goals (SDGs), have formed a commercial partnership.

The two firms recognize the synergy between their respective services and will promote the other’s services to their respective clients.

Before3020, Inc. works with clients to implement the SDGs into their strategies and incorporate the SDGs into every facet of their operations to deliver sustained social and financial outcomes for these clients, such as better talent recruitment and retention, a more equitable workforce, more resilient supply chains, greater fundraising success with impact and ESG-driven investors, to name a few of our B2B2C services.

“As we engage with our clients to implement the SDGs into their strategies and operations, the Edenark Group’s world-leading ISO 14001 Sustainability Certification Program is a powerful designation and credible global differentiator that our clients, located across North America, Europe, Asia, and Africa, will benefit from, and therefore we welcome the commercial partnership with Edenark Group to broaden our services to our clients,” said Dr. Brooke Newman, CEO of Before3020, Inc.

“The Edenark Group ISO 14001 sustainability certification is a natural progression for an organization that seeks a higher ROI via brand and revenue-side gains added to the financial and social benefits achieved from Before3020, Inc.’s engagements”, said David Goodman, CEO of Edenark Group.  “Further, from our side, having a partner that can help our clients create sustained outcomes by implementing the SDGs into their strategy and operations is a critical component to our overall sustainability mandate,” added Goodman.

About Edenark Group

The Edenark Group ISO 14001 is the world’s premier environmental sustainability certification program and allows SMEs (small to mid-sized enterprises) a program designed and priced specifically for them.  Edenark Group also helps clients pursue carbon neutrality and ESG compliance, using the Edenark Group ISO 14001 as a foundation for long-term compliance. Edenark Group can be reached at +1 561 512 2257

About Before3020, Inc.

Before3020, Inc. is a primarily women-owned and operated Delaware Public Benefit Corporation, comprising 12 doctoral-prepared change agents and a diverse advisory board for global sustainable development based in North America, Europe, Asia, and Africa. The company supports its clients with a full life-cycle (strategy to execution) offering to create sustained financial and social outcomes for them by implementing the UN Sustainable Development Goals into every facet of their operations and evaluating the outcomes against relevant benchmarks, including Statistical Package for the Social Sciences reports. Before3020, Inc. can be reached at brooke@before3020.org

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The Edenark Group ISO 14001 sustainability certification program is unique.

• First, we use the world’s top sustainability standard, the ISO 14001
• Then, our program is designed and priced specifically for SMEs (small to mid-sized enterprises)
• Third, we help our clients promote their certification, to drive brand, revenue and ROI
• Fourth, we help our clients progress to carbon neutrality, net zero and ESG
• Finally, but certainly not last, given that we believe sustainability is more about people than LED light bulbs, we have an entire people-piece, that helps you and your employees become healthier, happier and more productive.

We’ve talked about our high-altitude EWOT (exercise with oxygen therapy) gym, named Gym For The Brain; and are very proud of the results our clients are reporting and enjoying.

Today, we are happy to launch our online store – A Better World Starts With Me™, which offers the products we are successfully using in Gym For The Brain.

We welcome you to visit the site and use the free, no-obligation questionnaire.  You can enter whatever performance-related item(s) you would like to improve on, and see what we recommend.  Even if you choose not to proceed with us, it will probably add information for you to consider.

Ultimately, regardless of how you become happier, healthier and more productive, we know that if you do, you will then want to do more for others; and we hope this will lead you to say, “A Better World Starts With Me.”