Sustainability is playing an increasingly prominent role within SMEs. This stems from growing environmental problems and the increasing interest of stakeholders in ethically responsible entrepreneurship. Previously seen as an optional addition, sustainability is now seen as an essential factor for long-term business growth and resilience.
For SMEs, a focus on sustainability not only offers opportunities to have a positive impact on the environment and society, but also to improve operational efficiency, save costs, meet chain responsibility, and strengthen the competitive position. In this post, we will discuss why CSRD is relevant for your business, even if you are not subject to CSRD.
SMEs and the Value Chain.
An important part of CSRD is mapping and reporting on the value chain. To this end, CSRD-obligated companies will start requesting information from, among others, their suppliers and customers. These can also be SMEs. Large retailers are already asking their suppliers to endorse and report on sustainability goals. If you are part of a larger value chain, you can expect to receive such requests. The large listed companies will report for 2024 and the other large companies for 2025. A company is considered large if it meets these conditions.
How Can I Prepare?
Take a look at how you add value. Where do your goods come from? Who is involved in producing and transporting these goods? What influence do you have on this? How does the transport take place? How sustainable is the process, and what (potential) negative effects does my business have? On the other hand, consider which external factors can influence your business.
If you invest time in this, you will probably end up with a substantial list. These can be things like the growing shortage of raw materials, which drives up the cost price. But also rising gas prices due to a war, or increasing absenteeism in the context of a pandemic. Perhaps you don’t know where to start, or which standards apply to you. Then take a look at our blog CSRD Standards for SMEs. You may encounter questions that you don’t have the answer to yourself. Then also involve your stakeholders in this process and ask them your questions.
Would you like more information on how we can further assist your business with a sustainability report or improvement plan? A SME-oriented baseline measurement and subsequent monitoring is also part of our service package. Curious? Feel free to contact us. That’s what we’re here for.