Small businesses are at the heart of our economies. Our publication SME risk management: sustainability explains how and why SMEs need to put sustainability at the forefront. It outlines how accountants can help SMEs become more sustainable organisations so they can deal with these new realities.
We live in unprecedented times: globally integrated supply chains,
climate change, and now the pandemic, have highlighted the need to
change how we do business.
These issues touch on how the UN defines
sustainable development: How to meet the needs of the present without
compromising the ability of future generations to meet their own needs?
Small businesses are at the heart of our economies. Our publication SME risk management: sustainability
explains how and why SMEs need to put sustainability at the forefront.
It outlines how accountants can help SMEs become more sustainable
organisations so they can deal with these new realities.
A checklist to kickstart SMEs’ sustainable transition
We have developed a 3-step sustainability assessment for SMEs checklist
with the support of the European Association of Co-operative Banks
(EACB). Directed at accountants, it aims to help their SME clients
develop their businesses’ sustainability profile and enable a smooth
transition to more durable business models.
Why does sustainability matter for SMEs?
The sustainable transition is having an evident impact on SMEs. For
example, society increasingly expects businesses to do better. Our
awareness of companies’ social, environment and governance (ESG) impacts
is changing our consumption behaviours. SMEs need to become sustainable
if they wish to stay viable long-term.
SMEs could face serious risks if they don’t effectively address sustainability issues:
- outdated business models which could lead to fewer clients and partners
- competitive disadvantage, especially for consumer facing businesses
- upcoming regulatory requirements, for example on sustainability
reporting, that are trickling down from larger companies to
progressively smaller ones
- requirements that supply chains and business partners set for SMEs
to deal with, including on heavy internal controls and reporting
How can accountants help?
Thinking about sustainability can be daunting for SMEs that cope with
everyday challenges and the pandemic’s impacts. But Covid-19 is also
the latest call for more resilient and sustainable businesses. SMEs
often rely on accountants as their primary advisors on business
decisions. They can also help SME owners consider sustainability risks,
mitigate them, and advise on sustainable transition opportunities. They
can:
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