“If I have a small/ medium enterprise, should I be concerned about sustainability?” This is the main question that many new investors and managers ask when they hear of the term sustainability reporting. Some think that this is only meant for large firms, but the argument is incorrect. This post digs deeper into ESG sustainability reporting to demonstrate that even small enterprises have a role to play.
What is Sustainability Reporting?
Before we can look at the reasons why small enterprises should adopt sustainability reporting, the first step should be establishing what it is. According to the UN Conference on Environment and Development (UNCED) that was held in Rio de Janeiro in 1992, the world cannot be safe without adopting sustainable production and consumption. Therefore, they set rolling the wheel of sustainability that culminated with the setting of sustainability reporting guidelines and principles.
Sustainability reporting is the disclosure of an organization’s significant environmental, social, and economic impacts. It is a process that commences with setting clear objectives for sustainability, strategies for achieving them, and finally, presenting them in a report for stakeholders. For example, a manufacturer that releases a lot of emissions might want to cut that by 50% as a way of addressing global warming.
Small Enterprises Combined can have Enormous Impacts on the Planet
While it is true that a small organization is likely to have less social, governance, and environmental impacts, looking at them individually can be misleading. What about the combined effects of thousands of small and medium enterprises? The truth is that they are likely to have a huge cumulative effect. To avoid this effect, small enterprises should learn from other firms and come up with healthy and sustainable strategies for their operations.
The good thing about sustainability is that technology has advanced very fast, and it is now possible to get more efficient equipment, and adopt digital strategies that are more affordable. So, if you have a new firm, start by drawing goals for sustainability and focus on achieving them. Then, select a good sustainability reporting software for accuracy in data gathering and report generation.
Starting Early can Give Small Companies Leverage for Success
Why sustainability reporting? The benefits of adopting sustainability reporting are many and you should not be left behind in adopting them. For example, most customers today want to be associated only with firms that are focused on sustainability. So, showcasing your efforts, such as using emission-free technology in production and supporting greening projects, is likely to enhance your brand. This is what you need for more sales and profitability.
Sustainability is All about Concerns and Actions for Improvement
In business, no matter the level of operations, sustainability strongly focuses on the need for continuous improvement. As a small enterprise, the improvement is very important because it sets a clear path for growth at the local and international levels. Here is how it works. After setting the goals for sustainability in your organization, the strategies you adopt for achieving them set the company in motion to the next level. By the time you review how effectively the objectives were achieved, your company will have more satisfied staff, a better image, and a fast-growing market share. These are important attributes that you need for growth.
This post has demonstrated that achieving sustainability reporting is not a big-firm-only affair. Rather, everyone, including small and medium enterprises, must embrace it because their impact will go a long way in protecting the society and the environment. So, if you are getting started, it will be a great idea to adopt automation software because it makes sustainability reporting easy, cheaper, and straightforward.
With good sustainability reporting, you can never go wrong!
