Whilst SMEs and mid corporate businesses may feel unable to single-handedly fix the planet, they can still make a significant impact by embracing ESG initiatives. They can step up, rethink their approach and become more ESG prepared.
Expensive going green
At Xeed ESG we understand the challenges businesses face, including the perception of higher costs associated with environmentally friendly products that have a positive impact on the planet. In supply chains, large customers often demand eco-friendly alternatives but are reluctant to pay a premium, which can be frustrating.
However, the demand for environmental change is growing amongst SMEs and mid corporates who are eager to stay informed and find sustainable solutions. This presents an opportunity to collectively do business differently, align goals and reap financial benefits.
Make your voice heard
Business leaders can use their voice and contribute to the debate about the role of business in reversing climate change. A focus on ESG drivers needs to come from influential shareholders – investors, investment management businesses and the large corporates – making it a lot more challenging for SMEs to have their voices heard.
In the current economic climate start up entrepreneurs and SMEs may be fighting for survival but they possess strengths such as flexibility, imagination and agility. They are more nimble in taking responsibility for ESG and there’s an appetite to apply initiatives in line with the UK’s national push for net zero.
Move the dial on positive change
At Xeed ESG we encounter businesses that are innovating and driving change in their product and service offer whilst transforming their own behaviours. We are seeing thousands of inspirational mid corporates, and small businesses take action to move the dial on what is considered to be normal in terms of positive change.
We foster climate based conversations to develop innovative ways to better serve clients within an ESG framework. Although the enormity of fixing the planet may feel beyond the capabilities of individual business leaders, they can advocate for the importance of creating sustainable products and services, developing processes and implementing activities within supply chains. These incremental changes will build a prosperous future, reduce carbon emissions and have a positive impact on the climate and the planet.
Setting an ESG strategy
It’s encouraging that SMEs are going beyond acknowledging the importance of ESG. A bespoke survey commissioned by Barclays sampled 800 UK companies with a turnover of £6m-£50m and found that 95% of SMEs have an ESG strategy in place for their business.
While no individual business can fix the climate crisis alone, focusing on better environmental sustainability offers an opportunity to make a positive impact whilst remaining commercially viable. As the impact of climate change continues to intensify, collaboration in business becomes even more crucial.
