Sustainability for SMEs. Haven’t you got enough on your plate?
ESG (Environmental, Social, and Governance) considerations have long been associated with larger corporations and now they are becoming increasingly relevant for SMEs too.
However, owners of SMEs have a lot on their plate and fewer resources than their larger counterparts. So, while SMEs are known for their agility and innovation, some are slower to adopt environmental, social and governance practices. And that's even more understandable right now.
To navigate a route to greater sustainability at a time of economic instability and tight margins could put unnecessary pressure on an SME. So a more measured approach is sensible.
In our experience, by introducing initiatives, processes and functions in bite size chunks, the appetite for more
of the same will grow, as the benefits and business opportunities become more evident and more commonplace.
Yet, with a bewildering array of information out there, how does an SME distinguish the wood from the trees to
take the key steps to becoming responsible and sustainable In their business?
It's likely they feel they lack the time, knowledge, capacity or funds to tackle sustainability. So this is where an experienced accountant can play a vital role.
At GSM, good governance on behalf of our clients across all sectors has always been our mantra and so it's a natural progression to assist our clients to adapt and/or adopt greater sustainability practices.
We encourage our SME clients to take on more ESG frames of reference with reasonable financial benchmarks highlighted along their sustainability journey, without dogma, just via a prudently planned route.
When clients come to GSM they already know of our more ethical positioning, as a firm of 100+ years standing.
So they will no doubt expect a more socially responsible approach from the practice. After all, we've been doing
the right thing for our clients since 1918.
We guide them along a path which is socially aware as well as good for their business, stakeholders and customers.
Some SMEs view responsible and sustainable initiatives as unnecessary expense and can't always see the benefits. However, it's not solely a means to gain a reputational point of difference from competitors. At GSM, we present the business case for each initiative, remain alert to market conditions, the competitor environment, any risks, any impact on cash flow to fund sustainability initiatives and the potential rewards.
There is no pressure from us to follow in the steps of larger organisations either. Much of that would be unrealistic anyway. But what clients do gain from being at GSM are the financial tools to assume more responsible and sustainable ways of operating. Particularly so if, as an SME, you do business with large companies as part of a supply chain, where you may be expected to follow prescribed procedures in a number of areas, including sustainability.
In short, our clients are equipped to cope with the challenges presented by regulatory changes of all kinds, so we are perfectly positioned to help manage ESG compliance too.
For advice on how to take advantage of sustainability opportunities to positively impact your business and bottom line through social and environmental improvements, arrange a no obligation meeting with GSM on 020 7935 3793.