68% of micro and small companies already have an ESG strategy. Are you among them?
Small business is becoming increasingly involved with ecology - nearly 70% of the smallest Polish companies have no doubt that implementing actions that are beneficial to the Earth not only affects the environment, but also profitability. The vast majority of initiatives undertaken by small entrepreneurs result from the expectations of other entities, including consumers.
ESG strategy as an opportunity for company development and increased customer loyalty
According to the report by EFL and Credit Agricole Bank Polska Diagnosis of the level of knowledge and practices in the ESG area in micro and small companies , over 2/3 of entrepreneurs have already decided to develop an ESG strategy for their company . It is worth emphasising that these actions usually result from:
- growing customer expectations - 56%,
- requirements of financial institutions - 51%,
- conditions set by suppliers and contractors - 46%.
Even more, as many as 81% of micro and small entrepreneurs believe that sustainable development activities are important for their businesses. Among representatives of such companies, issues related to environmental protection and stopping climate change are perceived not as a burden and cost, but as an investment in the development of of the company.
Small businesses see numerous benefits from implementing ESG practices. In their opinion, such activities increase employee motivation and productivity, build customer trust and loyalty, and increase brand value.
What sustainable practices do small businesses choose?
Interestingly, in the smallest companies on the market , the ESG strategy is usually contained in a different document . This practice is chosen by as many as 33% of respondents. Only 10% of entrepreneurs prepare a separate document for this purpose, and as many as ¼ do not create one at all, but apply unwritten rules. This is a kind of contrast to the largest market players, who have already been required to report individual ESG indicators in writing this year .
The report prepared by EFL and Credit Agricole Bank Polska also indicates ESG actions that representatives of micro and small companies declare they will take. Among them, we can find:
- recycling and waste management - 74%,
- water consumption monitoring - 64%,
- energy consumption monitoring - 68%,
- thermal modernisation of buildings - 52%,
- installation of renewable energy systems - 42%,
- low-emission car fleet - 39%.
Companies are much less likely to measure their own and their suppliers' carbon footprints . Such actions are declared by 22% and 18% of respondents, respectively. This may be due to the adoption of a small-step strategy - micro and small enterprises must measure their strengths and implement subsequent ecological practices gradually.
Carbon Footprint Monitoring and ESG Indicators as a Future Trend
In the coming months and years, we can expect more activity in terms of striving for low or zero emissions and implementing tools that allow you to calculate and monitor a company's carbon footprint . One such tool is the Environmental Sustainability Dashboard , which combines the ability to calculate and control ESG indicators with an advisory service that will help you identify key data for your company and learn how to improve your environmental performance.
Conclusions from the analysis of data from the Environmental Sustainability Dashboard tool are also the basis for developing a sustainable development strategy in each company , setting directions for pro-ecological changes and for tracking the effectiveness of actions already taken. Why is it so important? Take part in the online training "Non-financial reporting and sustainable development of the company". , during which you will learn when and what to report and get to know the ESD tool from Interzero better.
Sources:
- Report: 68% of micro and small companies have an ESG strategy report, https://media.efl.pl/informacje/raport-68-mikro-i-malych-firm-posiada-strategie-esg