Sage’s Canada Managing Director simplifies workflows to help Canadian businesses grow.
ESG and sustainability initiatives are no longer nice to have—they are essential to successful business strategies as external stakeholders urge companies to show how they are improving their communities. World leaders are increasingly using these techniques to differentiate themselves.
Bain & Company and EcoVadis established “connections between business results and four different aspects of sustainability,” including DEI, employee satisfaction, renewable energy, and sustainable supply chain. Company’s recent “Path for Growth” poll indicated that Canadian SMBs are keen on improving their sustainability policies.
Thus, many companies are realizing the performance benefits of sustainability policies. What’s good for the earth is good for business.
ESG Reporting Regulations Are Gaining Momentum
As ESG reporting standards grow in Canada and beyond, we face a crossroads.
Canada’s Parliament passed the Fighting Against Forced Labour and Child Labour in Supply Chains Acts and revised the Customs Tariff (Bill S-211) on January 1, 2024. Companies must explain how they’re preventing and decreasing forced and child labor in their supply networks under the measure.
Therefore, “the U.S. Securities and Exchange Commission (SEC) unveiled plans to enhance and standardize climate-related disclosures for investors, as part of a growing awareness of the importance of environmental, social & governance (ESG) issues among public companies,” per Reuters.
While large firms outline their aims and plans, SMBs also aim to make a difference. However, many SMBs struggle to start their sustainability journey. SMBs face distinct problems because many policies are aimed at large, publicly traded companies.
Navigating The Sustainability Journey
Our study examined SMBs’ greening goals and obstacles. SMBs know that sustainability programs may boost community participation, brand visibility, and operational efficiency. Sustainability is important to 67% of Canadian SMBs, but the process is complicated.
Lack of information or understanding regarding sustainable practices hindered 44% of respondents from taking more tangible action to monitor their environmental impact, according to our research. Our study also showed “If reporting standards were simpler and more closely tailored to their businesses, 59% strongly believe that they would be more inclined to engage in climate reporting.”
There are immediate best practices firms may take to start their sustainable journey. Remember that Rome wasn’t built in a day, so organizations can start modest and grow over time.
Understand Your Organization’s Current Practices
Start by doing an internal audit of present processes to determine which ones are environmentally friendly, which may be changed, and which can be eliminated. A clearer view of current practices helps companies prioritize their efforts for immediate and long-term effect.
Paperless is a simple yet effective waste reduction method. Digitally transforming finance and payroll reduces the company’s carbon footprint and improves information management, efficiency, security, and compliance.
Set Measurable And Achievable Goals
An audit serves the purpose of identifying areas where policies can exert the most influence, while concurrently ensuring that businesses ensure the feasibility of their sustainability strategy. Aspirational goals are commendable; yet, it is imperative that they are attainable and congruent with the principles upheld by the company.
Small and medium-sized businesses (SMBs) might begin by adopting metric-based performance criteria to determine effective and ineffective strategies. This enables organizations to monitor their progress and implement necessary modifications.
To mitigate their local carbon footprints, businesses might initiate the process by establishing waste and energy reduction targets of 10%. Establishing recruiting or promotion objectives for disadvantaged groups inside small and medium-sized businesses (SMBs) to foster diversity, equity, and inclusion. It is essential to closely monitor development and adapt as necessary.
Accept That It Takes a Community
Climate change impacts all individuals, hence necessitating a collective endeavor. Effective cooperation between governments and industry leaders, together with the appropriate partner network, is crucial.
Small and medium-sized businesses (SMBs) can reduce their carbon emissions by collaborating with sustainable suppliers and partners. Organisations have the option to establish selection criteria that prioritize partners who have comparable sustainability objectives, such as the reduction of carbon footprints or the establishment of an ethical and transparent supply chain.
Small and medium-sized enterprises typically lack the necessary expertise and resources to prioritize and promote environmental, social, and governance (ESG) initiatives. The simplification of reporting criteria may necessitate the participation of regulators, industries, and partners. Enhancing the accessibility of tools and data is necessary to democratize sustainability for all organizations. Environmental sustainability is beneficial for company.
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Tran Dung/ Ates Global
*Source: Forbes
