Navigating the world of ESG (Environmental, Social, and Governance) and sustainability reporting can feel overwhelming with all the jargon. This guide aims to clarify some of the most commonly used terms in practical language. ESG (Environmental, Social, and Governance) ESG refers to the three key factors that investors and companies use to evaluate a business’s sustainability and ethical impact. Here's a breakdown of each component: Environmental (E): This aspect covers a company's impact on the natural world. It includes metrics like carbon emissions, water usage, waste management, energy efficiency, and biodiversity protection. Companies with strong environmental practices focus on reducing their ecological footprint and promoting sustainability in their operations. Social (S): The social dimension looks at how a company manages relationships with employees, suppliers, customers, and communities. It covers issues such as labour practices, diversity and inclusion, human rights, community engagement, and consumer protection. Businesses with high social standards prioritize fair labour practices, safety, and positive community impact. Governance (G): Governance focuses on a company's leadership, ethics, and internal practices. It includes elements like board diversity, executive pay, shareholder rights, transparency, and anti-corruption measures. Effective governance promotes accountability, integrity, and responsible decision-making within an organization. ESG Rating Schemes ESG rating schemes evaluate companies' environmental, social, and governance practices, primarily for investors looking to make responsible investments. Notable schemes include MSCI and Sustainalytics . These ratings rely on public ESG data, and companies may engage with ESG rating agencies to correct any information gaps. If your business seeks ESG-focused investors, reach out to the main rating schemes for a copy of your evaluation and make it a habit to stay responsive to their requests throughout the year. UN Global Compact (UNGC) The UN Global Compact sets a global standard for companies, covering ten principles related to human rights, labour, environment, and anti-corruption. Many UK companies comply by meeting local laws, but becoming a signatory offers networking and training opportunities. Signatories also publish an annual Communication on Progress, often as part of their annual report.
In today's business landscape, Environmental, Social, and Governance (ESG) considerations have become pivotal. Companies are increasingly expected to demonstrate their commitment to sustainable and ethical practices. However, the process of ESG reporting can be daunting, especially for small and medium-sized enterprises (SMEs) facing resource constraints. Enter i-Prove, an innovative all-in-one ESG reporting tool designed to simplify and streamline this essential task. What is i-Prove? i-Prove is a cutting-edge platform that leverages artificial intelligence to assist businesses in generating comprehensive ESG reports efficiently and cost-effectively. By utilizing existing company data and documentation, i-Prove can produce a first-draft ESG report in minutes, addressing over 80 pertinent questions. This rapid generation is particularly beneficial for UK businesses with less than 250 employees, where ESG reporting is mandated and traditionally consumes significant time and financial resources. Why is i-Prove Useful and Different from Other Platforms? Features set i-Prove apart from other ESG reporting tools: AI-Powered Efficiency: i-Prove's AI-driven approach enables the swift creation of ESG reports, drastically reducing the time and effort typically required. This efficiency is a game-changer for businesses aiming to meet compliance deadlines without overextending their resources. Cost-Effectiveness: Traditional ESG reporting can be costly, often necessitating external consultants and extensive internal labour. i-Prove mitigates these expenses by automating the reporting process, making it a financially viable option for SMEs. Comprehensive Coverage: The platform addresses a wide array of ESG factors, ensuring that reports are thorough and aligning with current regulatory standards. This comprehensive approach helps businesses present a complete picture of their ESG performance to stakeholders. User-Friendly Interface: Designed with the user in mind, i-Prove offers an intuitive interface that simplifies the reporting process, even for those with limited ESG expertise.
In the modern business world, integrating Environmental, Social, and Governance (ESG) practices isn’t just for large corporations. Small and medium-sized enterprises (SMEs) are increasingly expected to embrace ESG principles as well. For SMEs, implementing an ESG policy can be a powerful way to attract customers, investors, and talented employees while contributing positively to the environment and society. However, setting up an effective ESG policy can seem daunting, especially for smaller businesses with limited resources. In this guide, we’ll walk through the process step-by-step, helping SMEs develop and implement an ESG policy that aligns with their values, resources, and long-term growth strategy. Introduction to ESG for SMEs ESG practices cover three main areas: Environmental: How a business impacts the environment through waste, energy use, emissions, and resource consumption. Social: How a business interacts with employees, customers, and communities, encompassing topics like diversity, employee well-being, and community engagement. Governance: The company’s internal policies, ethics, transparency, and accountability practices. For SMEs, an ESG policy should reflect realistic, actionable steps that contribute to sustainable and ethical business practices. According to Harvard Business Review, businesses with strong ESG commitments are more resilient and better equipped to handle regulatory and market shifts. For SMEs, a well-designed ESG policy can enhance reputation, reduce risks, and even improve profitability.
In today’s market, small and medium-sized enterprises (SMEs) are facing new pressures from consumers, investors, and regulators to implement sustainable practices across their operations. A critical area of focus is the supply chain, where sustainability initiatives can significantly reduce environmental impact, increase resilience, and build a competitive advantage. For SMEs, building a sustainable supply chain is not only about minimizing harm to the environment; it also improves efficiency, reduces costs, and enhances brand reputation. In this article, we’ll explore why sustainable supply chains matter, how SMEs can make their supply chains more sustainable, and the benefits of aligning supply chain practices with Environmental, Social, and Governance (ESG) principles. Importance of Supply Chain Transparency in ESG Transparency in supply chains is essential for managing and demonstrating ESG efforts. Consumers, investors, and regulators are increasingly scrutinizing companies’ supply chains to ensure they uphold ethical, environmental, and social standards. According to McKinsey & Company, up to 90% of a company’s environmental impact is embedded within its supply chain, from sourcing raw materials to product delivery. For SMEs, improving supply chain transparency allows them to: Meet Regulatory Requirements : As sustainability regulations evolve, transparency helps SMEs comply with laws aimed at reducing carbon emissions and improving labor standards. Build Trust with Consumers : Modern consumers prefer brands that are open about their sourcing and production practices. Transparency fosters trust and loyalty, as it allows customers to make informed purchasing decisions. Attract Ethical Investors : Investors are increasingly looking to back companies with responsible supply chains. By demonstrating ethical sourcing and sustainable practices, SMEs can open doors to new funding opportunities. Transparency is the foundation for sustainable supply chain management. When SMEs know the origin of their materials and the practices of their suppliers, they can make informed decisions that align with their ESG values. Building Sustainable Supply Chains Creating a sustainable supply chain involves focusing on three main pillars: ethical sourcing, environmental responsibility, and efficient logistics. Each pillar addresses a different aspect of sustainability, ensuring that SMEs minimize harm to the environment and people while optimizing business operations. Sourcing Ethically and Locally Ethical sourcing means obtaining materials from suppliers who adhere to fair labour practices, environmental protection, and human rights. Sourcing materials locally can further reduce a company’s carbon footprint by minimizing transportation emissions. It also supports local economies, which can foster a positive relationship with the community. For example, a food producer might choose to source ingredients from nearby organic farms to ensure quality and reduce environmental impact. Similarly, a retailer could prioritize Fair Trade-certified suppliers, which guarantees that products are made according to ethical labour standards. By sourcing ethically and locally, SMEs can ensure their supply chain aligns with their sustainability goals and reflects their commitment to responsible business practices. Reducing Carbon Footprint in Logistics Logistics, which involves the transportation and storage of goods, is often one of the most carbon-intensive parts of a supply chain. SMEs can reduce their environmental footprint by optimizing logistics processes. Here are some strategies to consider: Route Optimization : By using route optimization software, SMEs can reduce fuel consumption, lower costs, and decrease emissions. Eco-Friendly Transportation : Transitioning to electric vehicles or using transportation services with lower emissions can make logistics greener. Sustainable Packaging : Choosing biodegradable or recyclable packaging reduces waste and appeals to eco-conscious consumers. According to the Carbon Trust , companies can cut logistics emissions by up to 20% with effective measures in place. Reducing the carbon footprint of logistics not only benefits the environment but also can lead to significant cost savings for SMEs. Efficient Resource Management Sustainable supply chains also involve using resources efficiently, from energy to water and raw materials. Efficient resource management reduces waste, lowers operational costs, and supports a business’s ESG goals. For example, SMEs can implement energy-efficient practices in their production facilities or encourage suppliers to reduce water usage. Small changes, such as using LED lighting or optimizing machinery usage, can have a cumulative impact on sustainability.
In today’s business world, Environmental, Social, and Governance (ESG) considerations are becoming more than just a corporate responsibility—they are also a strategic advantage . While the environmental and governance aspects often receive the most attention, the “Social” element in ESG is equally crucial, especially for small and medium-sized enterprises (SMEs). Fostering social impact not only contributes positively to society but can also drive customer loyalty, attract talent, and strengthen a business's reputation. This article explores how SMEs can enhance their role in the community by focusing on social impact, community engagement, diversity, and employee well-being. We’ll cover actionable ways to foster social value and highlight the business benefits of prioritizing the “S” in ESG. The “S” in ESG: Why Social Impact Matters The social aspect of ESG encompasses a broad range of practices that influence people, communities, and society at large. For SMEs, social impact often includes community involvement, ethical labour practices, employee well-being, and promoting diversity and inclusion. These initiatives create goodwill within the community, building trust and loyalty among consumers and employees alike. According to Harvard Business Review , companies with strong social responsibility practices tend to outperform their peers financially. Social impact is not just a moral imperative; it’s a strategic advantage. By focusing on social value, SMEs can differentiate themselves from competitors, attract customers who align with their values, and create a positive work environment that retains talent. Community Engagement and Local Impact Community engagement is a powerful way for SMEs to make a positive impact. Building connections with the local community fosters goodwill and shows that the business cares about the people it serves. SMEs can engage with their communities by sponsoring local events, supporting local schools, or partnering with local charities that align with their mission. Examples of Community Engagement Initiatives: Sponsoring Community Events : This could include funding local sports events, arts festivals, or community clean-up days. Such sponsorships not only provide value to the community but also enhance brand visibility and goodwill. Local Partnerships : SMEs can collaborate with nearby businesses or organizations to support shared causes, such as food drives, mental health awareness, or sustainability initiatives. Providing Volunteer Opportunities : Encourage employees to volunteer in the community by offering paid volunteer days or coordinating group volunteer activities. Employee volunteerism not only benefits the community but also builds team morale and pride. Employee Well-being and Diversity Focusing on employee well-being is essential for any business aiming to make a social impact. Employee satisfaction influences productivity, creativity, and overall company performance. According to Gallup , businesses that prioritize employee well-being see higher levels of engagement and lower turnover rates . Promoting diversity and inclusion is another key component of social responsibility. Embracing a diverse workforce allows SMEs to draw on a range of perspectives, enhancing creativity and decision-making. Furthermore, consumers today are more likely to support companies that reflect their values, including equality and inclusivity. Ways to Promote Employee Well-being and Diversity: Flexible Work Arrangements : Offer flexible hours or remote work options to help employees achieve a better work-life balance. Health and Wellness Programs : Provide access to mental health resources, fitness programs, or wellness workshops. This shows that the business cares about employees’ physical and mental well-being. Promote Diversity Initiatives : Implement hiring practices that ensure fair representation, and foster an inclusive environment where every employee feels valued.
Environmental, Social, and Governance (ESG) reporting is a growing necessity for small and medium-sized enterprises (SMEs). Yet, for many SMEs, the process of gathering, organizing, and reporting ESG data can be daunting and resource-intensive. Fortunately, AI and digital tools offer a solution by simplifying reporting, improving accuracy, and reducing costs. In this article, we’ll explore the key benefits of AI-powered tools for ESG reporting, the best tools available, and how SMEs can use AI to ensure compliance and enhance reporting quality. Why Digital Tools and AI Are Key to ESG Reporting As sustainability becomes increasingly central to business operations, digital tools have become essential for efficient ESG reporting . AI and automation streamline ESG reporting by automating data collection, analysis, and reporting. According to PwC , AI enables SMEs to improve reporting accuracy, stay compliant, and make data-driven decisions, freeing up time and resources for strategic initiatives. Automating data tracking with digital tools ensures that SMEs capture relevant metrics consistently and accurately, reducing the potential for errors. For example, AI can collect data on energy usage, waste reduction, or supply chain emissions, and analyse trends over time. This data enables SMEs to showcase their commitment to sustainability, meet regulatory standards, and demonstrate accountability to stakeholders. Data Collection and Reporting Accuracy High-quality ESG reporting depends on accurate and consistent data. Without reliable data, it’s challenging to identify areas for improvement or demonstrate accountability. AI-powered platforms such as Microsoft Power BI or i-Prove’s ESG platform streamline data collection and analysis, allowing SMEs to manage ESG information with ease. Digital tools provide a centralized platform where SMEs can gather, track, and store data. Real-time monitoring ensures that data remains current, helping SMEs stay aligned with ESG goals and track progress over time. These platforms also offer data visualization, allowing companies to present ESG data clearly and effectively to stakeholders. Top AI-Powered Tools for ESG Reporting i-Prove : Tailored specifically for SMEs, i-Prove offers comprehensive solutions for data collection, tracking, and reporting. The platform simplifies the entire ESG process, helping SMEs generate reports, monitor performance, and stay compliant with regulations. Diligent ESG : Diligent is a robust tool designed to simplify ESG compliance. It automates data collection and reporting while helping SMEs align with industry standards and regulatory frameworks. Workiva: Known for its powerful reporting capabilities, Workiva integrates ESG data across various frameworks. This tool is ideal for SMEs looking to streamline compliance and reporting while enhancing data accuracy. EcoVadis: EcoVadis is widely used by companies across industries to assess supplier sustainability. The platform enables SMEs to track supply chain metrics, ensuring that partners meet ESG standards. By using tools like these, SMEs can improve ESG data quality, reduce the risk of human error, and make data management a seamless part of their operations.
In the modern business landscape, Environmental, Social, and Governance (ESG) considerations are no longer exclusive to large corporations. Small and medium enterprises (SMEs) are increasingly expected to align with ESG standards to meet consumer demands, regulatory requirements, and investment criteria. Integrating ESG into core business strategies can provide SMEs with long-term growth opportunities, stakeholder trust, and a competitive edge in an evolving market. Here’s a step-by-step guide on how SMEs can successfully incorporate ESG into their operations, even with limited resources. Importance of Embedding ESG into Business Operations Embedding ESG into business operations isn’t merely a compliance measure. It’s a strategic shift that builds resilience and credibility. By adopting responsible practices across environmental, social, and governance factors, SMEs can reduce operational risks, improve brand reputation, and align with global sustainability goals, such as the United Nations Sustainable Development Goals (SDGs) . For example, businesses that commit to reducing carbon emissions and minimizing waste not only benefit the environment but can also reduce costs over time. Similarly, fostering an inclusive and ethical workplace helps attract talent, increase employee engagement, and boost productivity. The governance aspect of ESG, which involves establishing transparent decision-making processes and accountability, builds trust among investors, customers, and regulatory bodies alike. Long-term Growth and Stakeholder Trust: The Business Case for ESG Adopting ESG practices can position SMEs for long-term success and growth. Studies show that companies with robust ESG frameworks are more likely to outperform their peers in the long run. According to Harvard Business Review , businesses focused on ESG tend to have stronger financial performance, fewer regulatory fines, and better risk management. Stakeholder trust is another valuable benefit. Today’s consumers are informed and prefer to support brands with a demonstrated commitment to sustainability. Similarly, investors are drawn to companies with sound ESG policies as they are often seen as lower-risk investments. By embracing ESG, SMEs can meet stakeholder expectations, foster loyalty, and build long-lasting relationships with customers, partners, and investors. Steps for SMEs to Integrate ESG Strategically To make ESG part of a company’s DNA, SMEs need to approach it strategically, aligning goals with their vision and resources. Here’s a structured roadmap for SMEs to effectively embed ESG practices: Aligning ESG Goals with Business Vision Start by identifying how ESG aligns with the company’s core values and long-term objectives. SMEs should ask themselves questions like: What environmental impacts are most relevant to our business? How can we contribute positively to our community? How can we improve transparency in our operations? By answering these questions, businesses can define ESG goals that support their mission and resonate with customers and stakeholders. A company selling eco-friendly products, for instance, may focus on reducing plastic waste or supporting local communities, while a service-oriented SME might emphasize diversity and ethical governance. The key is to select goals that reflect the company’s mission and values. ESG in Supply Chain Management: Building Sustainable Supply Chains A crucial yet challenging aspect of ESG is creating a sustainable supply chain. SMEs can start by analysing their suppliers and choosing partners who also prioritize ESG. According to McKinsey & Company , supply chains can contribute up to four times the emissions of a company’s direct operations, making it an essential area for ESG improvements. SMEs can foster supply chain sustainability by collaborating with suppliers who follow ethical sourcing practices, using local suppliers to reduce transportation emissions, or implementing sustainable packaging. Aligning with suppliers who share similar ESG values not only improves the SME’s environmental footprint but can also prevent disruptions from regulatory non-compliance or reputational risks. Developing an ESG-Focused Company Culture Creating a company culture that values ESG starts at the top. Leadership should actively promote sustainable and ethical practices, encouraging employees to contribute ideas for ESG initiatives. A company culture focused on ESG can boost employee morale, attract talent, and encourage loyalty. For example, regular ESG training sessions can educate employees on sustainable practices and how they contribute to the company’s goals. Encouraging employee involvement in community projects or volunteering opportunities also emphasizes the social aspect of ESG and strengthens the company’s bond with its local community.
As the importance of Environmental, Social, and Governance (ESG) practices continues to rise, small and medium enterprises (SMEs) in the UK’s telecom and financial services sectors are facing both challenges and opportunities. For these industries, ESG practices are essential for regulatory compliance, risk management, and customer trust. However, ESG priorities differ significantly between telecom and financial services SMEs. In telecom, issues like data privacy, cybersecurity, and digital inclusion are paramount. Meanwhile, financial services focus heavily on responsible lending, financial inclusion, and sustainable investment practices. Here’s a breakdown of the unique ESG challenges and opportunities for these sectors and how addressing them can build trust and align with market demands. ESG Challenges and Opportunities in the Telecom Sector Industry-Specific Risks: Data Privacy and Cybersecurity For Telecom companies, data privacy and cybersecurity are critical components of ESG. Telecom companies handle vast amounts of personal data, making them highly vulnerable to cyber threats. Failing to protect customer data can lead to severe reputational damage, fines, and loss of customer trust. In an age where data breaches and cybersecurity risks are escalating, robust cybersecurity measures are essential for telecom SMEs. This includes implementing strong encryption, regular security audits, and employee training to minimize human error. By prioritizing data privacy within their ESG framework, Telecom SMEs can not only protect customers but also strengthen their brand reputation. Digital Inclusion and Accessibility Digital inclusion is another key area where telecom SMEs can drive social impact. Access to reliable internet and communication services is increasingly viewed as a fundamental right. By promoting digital inclusivity, telecom companies can bridge the digital divide, particularly in underserved communities. This can be achieved through affordable pricing, expanding network coverage in rural areas, and creating services tailored to lower-income or digitally excluded individuals. As digital inclusion aligns closely with social sustainability goals, telecom SMEs that prioritize it can strengthen their social impact, comply with customer demand for ethical practices, and appeal to socially conscious investors. Environmental Impact and Energy Consumption Telecom companies are known for their high energy consumption due to the infrastructure required to maintain network connectivity. The environmental impact , such as carbon emissions from data centres, is a pressing issue in the telecom industry. For SMEs in telecom, reducing energy consumption and lowering emissions are essential steps toward aligning with ESG goals. Implementing renewable energy solutions, optimizing network efficiency, and adopting energy-saving technologies can all contribute to a smaller environmental footprint. Not only do these actions help telecom SMEs reduce operational costs, but they also appeal to environmentally conscious customers and investors. Regulatory Pressures and Compliance Requirements Telecom companies face stringent regulatory requirements related to data privacy, cybersecurity, and environmental impact. The UK’s Data Protection Act (which incorporates GDPR) mandates strict guidelines on data handling and privacy protection, while environmental compliance is also monitored closely. Failing to adhere to these regulations can result in heavy fines and legal consequences. However, telecom SMEs that proactively integrate ESG measures can not only avoid penalties but also establish themselves as industry leaders in compliance, building trust among stakeholders and investors alike.
In the evolving world of business, Environmental, Social, and Governance (ESG) factors have moved to the forefront, impacting how companies are evaluated by clients, investors, and regulators alike. For small and medium enterprises (SMEs), embracing ESG practices offers more than just environmental benefits—it opens new doors to financing, investment, and growth . As sustainable finance gains momentum, SMEs that prioritize ESG are positioned to attract funding, secure more favourable loan terms, and access various financial incentives. Here’s how ESG can be a financial game-changer for SMEs, with examples of companies that have successfully leveraged ESG to attract investors, business partnerships, and client loyalty. The Role of ESG in Attracting Investors and Securing Financing Investors’ Increasing Interest in ESG-Centric Businesses Investors are increasingly prioritizing ESG factors when assessing potential investments, recognizing that businesses with strong ESG credentials often present lower risk and greater long-term stability. For SMEs, this is a powerful opportunity: by integrating ESG into their core business strategies, they can position themselves as attractive investment candidates in a competitive market. Investors see ESG-conscious companies as forward-thinking and resilient, better equipped to handle regulatory changes and environmental or social challenges. Access to Sustainable Financing and Green Bonds Sustainable finance instruments , such as green bonds, green loans, and sustainability-linked loans, have gained significant traction in recent years. These financing options are designed for businesses with clear ESG goals, making them ideal for SMEs that can demonstrate a commitment to sustainability. Green bonds, for instance, allow companies to raise funds specifically for environmentally friendly projects, while sustainability-linked loans offer SMEs more favourable terms as they achieve specific ESG targets. For SMEs looking to fund eco-friendly projects, these instruments provide not only capital but also a strategic advantage in a market increasingly focused on sustainability. ESG as a Risk Mitigator ESG serves as a risk mitigation tool that appeals to both lenders and investors. From a financial perspective, companies that manage ESG risks effectively are seen as more stable and sustainable, which can lead to lower borrowing costs and increased investor interest. For example, reducing carbon emissions lowers environmental liabilities, while strong governance practices reduce operational risks. SMEs that integrate ESG can position themselves as lower-risk investment options, which is particularly valuable for attracting funds from institutional investors looking for stable long-term growth.
Environmental, Social, and Governance (ESG) practices are becoming essential, especially as customers and investors prioritize sustainable and responsible business practices. For SMEs (small and medium enterprises) in the UK, this shift means that ESG reporting can no longer be overlooked. ESG reporting can enhance brand credibility, open doors for investment, and ensure compliance with regulatory changes. However, for many SMEs, understanding how to begin can be daunting. That’s where i-Prove steps in, offering streamlined solutions to make ESG reporting accessible, manageable, and effective. Understanding ESG Reporting for SMEs Why ESG Reporting Matters for SMEs ESG reporting enables SMEs to communicate their environmental impact, social values, and governance principles transparently. It can differentiate a brand , build trust with stakeholders, and attract investment by showcasing a commitment to sustainability and ethical practices. As ESG regulations and expectations continue to grow, early adopters of ESG reporting are likely to gain a competitive edge in terms of credibility and market position. For UK-based SMEs, ESG reporting also aligns with national goals, like the push toward Net Zero emissions by 2050, making it a valuable step for regulatory compliance. Core Components of ESG Reporting Understanding the three pillars of ESG—Environmental, Social, and Governance—can help SMEs create focused, effective reports. Environmental (E) : This component highlights a company’s impact on the environment, including carbon emissions, waste management, water usage, and resource efficiency. For SMEs, it could mean reducing energy usage, sourcing sustainably, or optimizing waste reduction practices. Social (S) : The social pillar involves how companies treat people, encompassing employee welfare, diversity and inclusion, community engagement, and customer relations. Reporting on social initiatives shows SMEs’ commitment to fostering a positive workplace culture and contributing to societal well-being. Governance (G) : Governance refers to the internal structures and practices that ensure ethical business conduct. For SMEs, this includes board composition, anti-corruption policies, transparency, and overall accountability. Strong governance practices build credibility, particularly with investors and regulators. Common ESG Reporting Frameworks and Standards A solid ESG report follows recognized frameworks to ensure consistency and comparability. Here are some of the most common frameworks that can guide SMEs: The Global Reporting Initiative (GRI) The Global Reporting Initiative (GRI) is one of the most widely adopted frameworks globally. It offers a flexible structure that’s ideal for SMEs, allowing them to report on a broad range of metrics across environmental, social, and governance areas. With GRI, SMEs can decide on the most relevant metrics to their operations, making it easier to craft a report that genuinely reflects their practices. The Sustainability Accounting Standards Board (SASB) The Sustainability Accounting Standards Board (SASB) provides standards tailored to specific industries, allowing SMEs to focus on metrics most relevant to their sector. SASB is especially beneficial for SMEs that want to offer industry-specific ESG insights to investors, aligning ESG goals with business objectives. For example, a tech-focused SME would concentrate on energy use and data privacy, whereas a manufacturing SME might prioritize waste reduction and efficient supply chains. Other Frameworks: CDP and TCFD While GRI and SASB are widely used, there are additional frameworks like CDP (Carbon Disclosure Project) and TCFD (Task Force on Climate-Related Financial Disclosures) . CDP focuses on carbon emissions, water management, and forestry practices, which can be beneficial for SMEs aiming to improve environmental transparency. TCFD, meanwhile, helps companies communicate how climate risks impact their financial performance, which is valuable for SMEs working toward climate resilience.
