Lower-cost digital tools are breaking boundaries for SMEs in sustainability. From automated ESG reporting analytics and carbon calculation, to ESG risk ratings, embracing sustainability is at last achievable and cost-effective.
Do you want your firm to be more sustainable but worry about how much it will cost? Sustainability is becoming essential for businesses as stakeholders and regulators demand greater transparency and accountability on environmental, social, and governance (ESG) issues.
For small and medium-sized enterprises (SMEs), the cost and complexity of managing and reporting sustainability initiatives have been daunting. Although the global economy has so far avoided recession, it is still a strong risk, says the World Bank. A recession would tighten the financial squeeze on firms already struggling with the impacts of war in Ukraine, persistently high inflation, and higher interest rates.
Such worsening conditions could tempt time and cash-poor SMEs to delay critical sustainability initiatives. But help is at hand.
The perception that sustainability involves expensive, resource-heavy activities out of reach for SMEs is changing with the emergence of affordable digital tools. These tools help you automate ESG reporting, analytics and carbon calculation to reduce costs; and they make ESG risk rating more affordable and achievable too. Let’s explore how these new technologies can support your journey to sustainability and positive impacts.
1) Automated ESG reporting
In the past, ESG reporting has been a time-consuming and resource-intensive process that requires extensive data collection and analysis. However, digital tools have simplified and automated this process, enabling your SME to generate ESG reports efficiently.
By centralizing data collection and using pre-built templates, these tools streamline the reporting process, saving time and effort. For example, you can now easily track and report your environmental impact, social initiatives, and governance practices while reducing the burden on your internal resources.
2) Analytics for performance insights
Digital tools offer affordable analytics that give SMEs powerful insights into their sustainability performance. These insights allow your SME to make informed decisions, prioritize initiatives, and optimize resource allocation effectively. By collecting and analyzing data on factors such as energy consumption, waste generation, carbon emissions, and social impact, you can also set sustainability targets, monitor progress, identify areas for improvement, and demonstrate continuous improvement in your sustainability efforts.
3) Carbon calculation tools
Calculating and managing carbon emissions is a crucial aspect of sustainability. Carbon calculation tools enable SMEs to measure and track their carbon footprint accurately. They consider various emission sources, including energy consumption, transportation, and supply chains, to provide a comprehensive assessment.
By understanding your SME’s emissions, you can target reduction strategies and offset programs, leading to cost savings and a positive environmental impact. The good news is digital carbon calculation tools are now affordable to SMEs. So even if the world nudges into recession and you’re feeling the financial squeeze, you can still start or continue your journey to carbon neutrality without it costing a fortune.
4) ESG risk rating and benchmarking
ESG risk rating and benchmarking tools enable SMEs to benchmark their sustainability performance against industry peers and established standards. These tools evaluate a range of factors, from environmental impact to social practices, governance structure, and ethical considerations.
By understanding your firm’s relative position, you can identify improvements and implement strategies to enhance ESG performance. ESG risk rating tools also assist SMEs in understanding potential sustainability-related risks and opportunities, enabling you to make proactive decisions and mitigate risk.
Cost savings and competitive advantage
Embracing affordable digital sustainability tools helps your SME achieve significant cost savings by optimizing energy consumption, reducing waste, and improving resource management. These tools help you achieve long-term financial benefits by identifying opportunities for process optimization and efficiency gains.
But integrating sustainability practices also enhances your reputation, and helps you attract environmentally conscious customers, investors, and partners. By enabling you to demonstrate this commitment to sustainability, digital sustainability tools can ultimately help you gain competitive advantage without straining your resources.
At Rimm with our myCSO product, we believe sustainability should be accessible, actionable and affordable. Let us be your Chief Sustainability Officer and handle all your company’s sustainability needs. Get started today.
Simplify Your Sustainability Performance & Tracking With myCSO
✅ Calculate your scope 1, 2 and 3 emissions instantly
✅ Gauge your company’s sustainability performance
✅ View your sustainability performance all from one dashboard
✅ Benchmark against industry peers
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