68% micro and small companies already have an ESG strategy. Are you among this group?
Small business is getting more and more involved with ecology - almost 70% of the smallest Polish companies have no doubt that introducing activities beneficial for the Earth not only influences the state of 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 growth and increased customer loyalty
From a report by EFL and Credit Agricole Bank Polska Diagnosis of the level of ESG knowledge and practices in micro and small companies it follows that already more than 2/3 of entrepreneurs have decided to develop an ESG strategy for their company. It is worth noting that usually these activities result from:
- growing customer expectations - 56%,
- requirements of financial institutions - 51%,
- conditions imposed by suppliers and contractors - 46%.
Even more, 81% micro and small entrepreneurs believe that sustainability measures are important for their businesses. Among representatives of such companies environmental and climate change issues are seen not as a burden and a cost, but as an investment in development enterprises.
Small entrepreneurs see numerous benefits from implementing ESG practices. In their view, such measures increase employee motivation and productivity, build customer trust and loyalty, and enhance brand value.
What sustainable practices does small business choose?
Interestingly, in the smallest companies on the market the ESG strategy is usually contained in another document. This is the practice chosen by as many as 33% respondents. Only 10% 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 from the largest market players, who have already been required to report individual ESG indicators in writing this year.
Prepared by EFL and Credit Agricole Bank Polska, the report also indicates activities in ESG areas, which representatives of micro and small companies declare to undertake. Among them we find:
- recycling and waste management - 74%,
- Water consumption monitoring - 64%,
- Energy consumption monitoring - 68%,
- thermal modernisation of buildings - 52%,
- RES installation - 42%,
- low-emission vehicle fleet - 39%.
Definitely less frequent companies decide to measure their carbon footprint themselves and their suppliers. Such actions are declared by 22% and 18% respondents respectively. Perhaps this is due to the adoption of a strategy of small steps - micro and small enterprises need to measure themselves by their strengths and implement further green practices gradually.
Monitoring of carbon footprint and ESG indicators as a future trend
In the coming months and years, we can expect to see more activity in moving towards low- or zero-carbon and the implementation of tools for calculating and monitoring the carbon footprint companies. Such a tool is Enviromental Sustainability Dashboard, which combines the ability to calculate and control ESG indicators with a consultancy service to identify your company's key data and learn about ways to improve your environmental performance.
Findings from the analysis of data from the Enviromental Sustainability Dashboard tool are also the basis for any company's sustainability strategyThe Commission's aim is to help the Member States to make the best possible use of their resources, to set the course for environmental change and to monitor the effectiveness of the measures that have already been taken. Why is this so important? Take part in an online training course "Non-financial reporting and corporate sustainability".during which you will learn when and what to report and get a closer look at the ESD tool from Interzero.
Sources:
- Report: 68% micro and small companies have an ESG strategy report, https://media.efl.pl/informacje/raport-68-mikro-i-malych-firm-posiada-strategie-esg