SMEs assume that their current lack of resources prevents them from adopting ESG as any ESG efforts will not have any financial or operational benefit in the long run. I am here to tell you that ESG -- even on a small scale – will always have a residual positive effect on every business of any size. Like anything else in life (except a slice of chocolate cake) SIZE DOES NOT MATTER!
Yes bigger organizations may have extra resources (translated as personnel and money) to develop and implement ESG policies and collaborate via high-level sustainability partnerships, but SMEs are more likely attract sustainably conscious investors and customers coupled with the fact that they do not have the hinderances of multiple and varied bureaucracy loops that larger organizations must undertake to remain listed on stock exchanges.
Smaller businesses and their leaders are in closer proximity to their customers and thus will have greater opportunities to share their sustainability stories and facilitate connections at a deeper and more sincere level.
An effective yet concise ESG plan, should demonstrate a business's commitment to risk management, cost reduction and care for the environment. It should also indicate that a business has a strong attitude on socioeconomic issues -- including customer satisfaction, labor standards, social injustice and sustainable investments -- and is willing to proactively evolve with the changing market.
Some critics believe that ESG investing isn't capable of producing the real-world results that it promises. I beg to disagree. Fact is despite the negativity that is being thrown at ESG from some quarters, it will not slow down the ESG adoption rates and solid returns of ESG investments. Is your firm ready to check how you rank according to ESG metrics? Contact me!
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