17th October 2022
ESG commitments for SMEs during tough times
Small and medium enterprises (SMEs) are being buffeted by global events beyond their control, and economic activity looks set to slow for many. But momentum behind the Environmental, Social and Governance (ESG) movement is undiminished, sitting high on corporate agendas for several reasons including regulation preparation, supply-chain approval, loan and insurance incentives, staff retention, and the rising moral imperative associated with conducting and winning business today. ESG commitments are key for SMEs during tough times.
It all sounds rather overwhelming and we understand that ESG commitments are difficult to navigate, which is why we offer support in this space.
So how can businesses juggle the costs of impactful ESG fulfilment with tighter budget controls and overall tough times?
Right-size your ESG strategy and commitment
Businesses have to carefully address their own time, resource and knowledge requirements to effectively incorporate ESG, and recognise there is a cost/benefit associated with this. ‘ESG DIY’ is low cost/low benefit/high risk valuable resources being poorly allocated, lack of accreditation and potential reputation risk even if benign claims are questioned, for example by employees. Engaging consultants to engineer a policy is getting expensive and carries risks inherent in any outsourced execution strategy. A full-time Sustainability Officer (or CSO) will deliver but a dedicated headcount here is also expensive and more suited for complex, larger businesses.
Sustainability As A Service
What if you could deploy a ‘CSO’-type function, but only when you need it? ‘Sustainability As A Service’ or SustAAS uses targeted surveys and interviews, to assess, analyse and advise on effective ESG action, proportionate to the size and function of your business. Specific targets are agreed with management, and the action is periodically monitored and reviewed, helping to build a demonstrable track record and educate in the process. SustAAS benefits include a real investment in ESG by the business without the associated overheads. It is much less intrusive than traditional consultation, and puts cost-conscious businesses in a very strong position, meeting stakeholder, investor and supply chain requirements.
An ESG Strategy to help you
At The Disruption House, we recognise that SMEs need to deliver an effective ESG strategy in any economic climate, not just the tough times. TDH ESG Essentials specialises in SustAAS engagement, using advisory services built around survey audit tools, to help businesses meet clear ESG objectives, boost internal and external impact while maintaining strict cost discipline.
To read the recent poll conducted by TISAtech with The Disruption House, click here FTAdviser