ESG for SMEs

Download or read book ESG for SMEs written by Indika Edussuriya and published by Independently Published. This book was released on 2022-09-12 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Topics discussed include - Double materiality analysis, ESG strategy, ESG framework, stakeholder analysis, value chain analysis, transitional opportunity ranking, transitional risk ranking, energy audits, carbon neutrality target, net zero commitment, product life cycle analysis, double materiality map, ESG priorities vs. internal capabilities, implementational planning for ESG strategy, objective setting, KPI design, target setting, governance framework establishment and ESG assurance. Concepts are discussed and demonstrated through hypothetical application. This book aims to establish a generalisable method, for small and medium sized enterprises to seamlessly combine, sustainable development principles with corporate business value addition strategies. Ideally this method should facilitate synchronized strategy development & implementation, optimized governance, and affective resource allocation in SMEs. Easy to follow step by step guidance and practical illustrations are provided for formulation of ESG strategic framework, implementation and ESG disclosure. Business context application of key concepts are demonstrated in detail practical replication. New concepts - double materiality with reporting contextuality, five element materiality analysis, materiality mapping, material issues to targets & metrics (MITM model), sustainable development strategy formulation process (SDSFP model) and overarching sustainable development principles (OSDP model) are introduced and demonstrated through practical application. In today's context, SMEs are faced with urgent calls to action over climate and socio-economic emergencies across the world. Market trends, social pressure, legislative pressure, and peer pressure, has companies cornered and confused. There are various guideline frameworks on business enterprise alignment for ESG disclosure. However, guidance on streamlined methods to enable alignment of the primary objective of corporate value addition with environment, social and governance concepts are rare. On most occasions, ESG projects are initiated with the core objective of generating a disclosure report. These programs run the risk of creating internal application deficiencies and overall misalignment in business and sustainability objectives. This has led to confusion and unintended greenwashing. Small & medium sized companies are the main contributors for employment, economic growth, better income distribution and social entrepreneurship, the world over. The sustainable development transition poses heightened risks and better opportunities for these entities. SMEs should be adequately equipped and empowered to mitigate sustainable development transitional risks and capitalize on opportunities. Also, the ESG strategic planning process is designed to generate sustainable opportunities for corporate value addition, rather than the traditional linear growth model of producing and selling more to enable more value addition. Preparedness, strategic alignment, and robust governance will increase their resilience and continued economic contribution which is key to wholistic socio-economic wellbeing. Also, SMEs have widespread business bases and close interactions with social subsystems. Hence, their influence on the wider society, for sustainable consumption alignment and lifestyle changes, will be much greater. For Whom - Founders, Owner Managers, Corporate Managers, Sustainability Consultants, Environmental Auditors & Consultants, HSE Auditors & Consultants, Energy Auditors & Consultants, ESG Managers, Sustainability Managers, CSR Managers, Investors, ESG Auditors, Social and Environmental Activists.