In Peter McAteer’s book “Sustainability is the New Advantage: Leadership, Change and the Future of Business”, the author identifies the skills, best practices and new ideas needed to teach the next generation to create, develop and manage sustainable organizations. Research cited in the book shows that during major market shifts, those who first begin to transform prove to be the most profitable. This means that only 15-20% of businesses make a bold transition to a sustainable business model in the first five to ten years. While the focus is on large corporations, small and medium-sized businesses remain in the shadows, and they can become sustainability champions if they look beyond the regulatory aspects of ESG and realise the benefits, new business opportunities and importance of their actions for nature and the future.
ESG as a way of thinking
Leaders need to become agents of change and link sustainability to value creation. Many business leaders see sustainability as a liability rather than an asset that can help their businesses succeed. To change their companies’ practices, leaders must address this misconception.
The importance of SMEs
Small and medium-sized enterprises play an essential role in achieving global sustainable development goals. When large organisations embrace sustainability, they can have a huge positive impact on both the world and their own bottom lines. Small and medium-sized enterprises (SMEs) can also contribute to and benefit from more sustainable business practices. SMEs in the United States are companies that employ fewer than 500 workers, and in the European Union, they employ fewer than 250 workers and have annual revenues of less than EUR 50 million. Considering that more than 27 million SMEs are in the European Union, this is a significant increase. SMEs operate in the United States alone, their inclusion is vital. The clear message to all companies operating in the EU is to start complying with the new sustainability regulations if they want to remain competitive and continue to operate in Europe.
What SMEs can do to achieve sustainability
For starters, SMEs can conduct an assessment that measures the impact on the environment, workers, customers, the community and management practices. The next step is to train staff on sustainable practices. They need to make sure the leadership team plays an active role in sharing the sustainability message. Last but not least is maintaining a robust ecosystem of suppliers and partners who share the company’s commitment to sustainability.
