Sustainability represents an opportunity and a challenge at the same time for Small and Medium Enterprises (SMEs).
What is meant by sustainability?
The World Commission on Environment and Development (Brundtland Commission) in its 1987 report "Our common future" defined sustainable development as "development which enables the present generation to satisfy its own needs without compromising the ability of future generations to satisfy theirs." An intergenerational pact therefore which in the last 40 years has not always been respected. To promote sustainable development, in 2015, 193 UN member countries adopted the 2030 Agenda and defined 17 sustainable development goals which are grouped into five fundamental principles such as people, planet, prosperity, peace and collaboration (the so-called 5Ps).
The Sustainable Development Goals - SDGs (Sustainable Development Goals - SDGs) and the 169 sub-goals associated with them constitute the reference framework for global sustainable development and take into account in a balanced manner the three dimensions of sustainable development, namely economic, social and ecological. The sustainable development goals must be achieved by 2030 globally by all UN member countries; this means that every country on the planet is called upon to provide its own contribution to jointly address these great challenges.
Switzerland is also required to implement the objectives at the national level. In its Strategy for Sustainable Development 2030 (SSS 2030), the Federal Council illustrates which priority thematic areas it intends to establish over the next ten years for the implementation of the Agenda 2030 for sustainable development. Among these we find the objective of strengthening corporate social responsibility - CSR (the so-called Corporate Social Responsibility - CSR).
Indeed, through their notable economic, environmental and social impact, companies can contribute significantly to the implementation of the 2030 Agenda, thus securing the market opportunities offered by a future-oriented environment. Through their activities, companies can promote equality, improvement of working conditions, prevention of corruption, responsible management of resources, reduction of environmental pollution, respect for human rights and ecological standards in Switzerland and abroad. By implementing responsible business conduct, they can also enjoy a strategic advantage, increase their productivity and reduce reputational risks.
The various stakeholders, including customers, collaborators, suppliers, shareholders, investors, society and politics expect companies to act with greater responsibility; this is now a clear and irreversible trend. Corporate Governance becomes a management and supervision system for companies aimed at their sustainable development and sustainability objectives now become an integral part of the company strategy. The relevance of the role played by entrepreneurs, members of boards of directors and members of managements, who can / must express their commitment towards the sustainable transition, is evident.
Why is sustainability relevant for SMEs?
First of all, in the near future, multinational Swiss companies listed on the stock exchange, affiliated or with turnover in the EU will have to produce sustainability reports according to international standards and subject them to external audit.
Secondly, SMEs are also increasingly required to communicate non-financial information (such as CO2 reduction) via the supply chain if they wish to continue supplying companies subject to (self) regulation in Switzerland and abroad.
Finally, in all likelihood even SMEs excluded from this category will be pushed to spontaneously dedicate greater attention to the issue of sustainability for strategic reasons with the aim of being relevant on the consumer market and attractive on the labor market, the latter aspect particularly important and urgent given the current shortage of qualified personnel.
As attested by numerous studies, companies that have implemented a sustainable strategy see the positive repercussions on their economic data. Among the concrete advantages for SMEs we can mention: competitive advantage of the company as customers increasingly take sustainability criteria into account, competitive advantage in the case of public tenders, better credit conditions, easier access to the capital market, the reputation as a responsible employer can improve hiring success (with particular reference to new generations), increased employee motivation and productivity, possible cost reduction thanks to a more efficient use of resources.
How to implement sustainability in your company?
First, the company's Board of Directors and Management should ask themselves the following central questions: How can the company become more sustainable within its current business model? What opportunities and benefits related to sustainability can the company identify? Where does the company have the greatest impact on sustainability (materiality analysis)? Who are the main stakeholders and what are their sustainability requirements? How can the company respond to these needs? What governance structure needs to be established? Which sustainability-related KPIs need to be collected and monitored? What reporting format is foreseen (taking into account possible legal requirements, stakeholder requirements, etc.)?
Once the decision has been made to proceed with the sustainable transformation of the company and the commitment from the top management has been obtained, we should proceed with a systematic and pragmatic approach that takes into account the following 4 macro-phases: analyzing the situation, generating options, planning the intervention measures, achieve impact. All accompanied by continuous communication, both internal to the company and externally (to stakeholders). It is important that sustainability is integrated both at a strategic and operational level. A significant factor, in addition to the provision of the necessary human, technical and financial resources, is the acquisition of specific internal skills or through a specialized consultant who can accompany the company on its path.
Why choose PLURIAUDIT
Every SME must be resilient and sustainable. We at PLURIAUDIT do not limit ourselves to verifying your annual account: we help you identify opportunities for improvement in your internal processes, optimize resources, supporting you in the objective of guaranteeing ethical and sustainable operations for your business.
In this regard we can support you in particular in the preparation or revision of non-financial information (sustainability report).
Furthermore, through our partner company Responsibility Consulting Sagl we can provide you with support in the sustainable transformation of your business.