SMEs
Both the UK and the EU have committed to carbon neutrality by 2050. In order to reach this target ESG reporting in the UK will be further formalised through the Sustainability Disclosure Requirements (SDRs) with fully mandatory disclosure expected by 2025. In the EU the Corporate Social Responsibility Directive (CSRD) will expand reporting requirements from about 11,000 companies under the current directive to more than 50,000 by 2023.
To meet the requirement businesses with large and complex supply chains need a reliable tool to accurately assess their suppliers' ESG practices. The supply chain might be an area of potential vulnerability for many companies, therefore it is vital to align sustainability goals and ensure that your partners are also striving for best practice.
Sustainability as a good business practice.
Private companies might not be subject to the same regulations large public companies face but ESG strategy and compliance are becoming increasingly relevant to them. Regulators and lawmakers are aware that by introducing requirements to the top of the supply chain they drive change across the whole ecosystem encouraging the smaller players to follow the lead of their larger partners.
With established ESG policies and practices in place you will be in an advantageous position.
Today tenders from larger organisations, investors and customers are increasingly weighting ESG responses and hold firms accountable of their performance. Introducing ESG reporting adds value to your business no matter the size. Taking this step now creates a commercial advantage of becoming early adopters and getting ahead of your competitors, better prepared when compulsory regulatory and reporting requirements are introduced.
The first step towards ESG reporting
Without access to good tools, sustainability reporting for SMEs might be complex, confusing and expensive. We recognise that no one-size-fits-all ESG plan exists, however there are universal values that are easily translatable in measurable indicators
ESG Bay simplified the process for you, helping you to conduct your first materiality assessment. There are subject areas where you are most likely already showing commitment to, such as diversity, equity and inclusion (DE&I); community engagement; and environmental preservation.
You can illustrate your dedication towards ESG objectives through initiatives like remote work, employee personal developments plan, education support and community engagement which might already have been embedded into your company’s operations and ESG strategy.
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