SMEs can benefit from integrating growth with environmental sustainability
Accounting for about 30% of global greenhouse gas emissions, the industrial sector is accelerating its efforts to achieve net zero by 2050 or sooner and make environmental sustainability an imperative in response to the growing urgency of climate change.
Indeed, findings from the Climate Action 100+ 2023 report shows that 77% of the companies surveyed now commit to net zero across at least Scope 1 and 2 emissions.
And there are economic benefits too – a 2023 McKinsey study of publicly listed companies found that organizations which outperformed on profit, growth and environmental, social and governance (ESG) saw greater revenue increases than companies that only outperformed on profit and growth.
In addition, studies indicate that by incorporating climate risk assessments into a company’s sustainability plan, organizations can better hedge against the threat extreme weather events and future policy updates present to their business.
However, surveys show that many small to medium sized enterprises (SMEs) have yet to develop strategies incorporating environmental sustainability and are therefore not yet participating in the sustainability journey.
SMEs and mid-sized companies do not have the same number of resources to dedicate to sustainability efforts. Yet smaller enterprises are not only a key part of the industrial transformation overall as they are estimated to contribute up to about 60-70% of global industrial emissions, but also can benefit from embracing more sustainable operations.
As such, there is an opportunity to embrace a business investment mindset with three key benefits that can be unlocked through sustainability showcased below and illustrated with real-world practices that can be taken to advance this journey.
Learn more: https://www.weforum.org/agenda/2024/09/net-zero-environmental-sustainability-smes-benefits/
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