This article speaks to Hong Kong SMEs, but the message is the same, no matter where the SME is located, and consistent with what we have been reporting
- ESG is set to become a key factor for [SMEs] to increase their advantage, raise their reputation and attract investors
- Small and medium-sized enterprises (SMEs) stand to attract more business opportunities from larger, listed companies if they can manage to satisfy increasing demands for disclosures about their progress on environmental, social and governance (ESG) issues
- Lots of large-cap companies are enhancing their third-party risk management system, [through which] SMEs will be required to submit ESG data
- Some SMEs will be required to go through supplier due-diligence processes
- As larger firms begin reporting on their scope 3 emissions – a category that includes activities throughout their supply chains – SMEs must have sustainability, carbon neutral and ESG programs if they want to do business with those big corporations
If you are a SME, the benefits of becoming certified sustainable, then certified carbon neutral, then building an ESG program, are clear.
Further, for SMEs that get ahead of this, there is opportunity to take market share from those that delay, further improving the ROI of the process. This PPP will help define what to look for in a program.