ESG reporting is becoming increasingly important for companies in light of the growing focus on sustainability, which affects all stakeholders, from regulators and companies to financial institutions and consumers.
For many companies, including SMEs, this is no longer a matter of choice: the adopted Corporate Sustainability Reporting Directive has increased the number of companies obliged to publish their ESG reports. Due to the heterogeneity of the parameters to be monitored – this refers to environmental, social and governance aspects of the business – the process is proving to be difficult and time-consuming.
That is why more and more companies are turning to Synesgy, a solution that automates and certifies the process, providing detailed information that not only helps companies determine their current situation but also guides them on the path to improving their sustainability performance.
ESG reporting: why it is no longer optional for SMEs
No company can afford not to monitor its sustainability performance, and that includes SMEs. While many small companies are still in the early stages of ESG reporting, large companies have long been urged to optimise their sustainability processes.
This also means taking a look at what is happening along the supply chain, which often consists of small businesses. For the latter, therefore, ignoring ESG reporting means running the risk of excluding themselves from important opportunities for cooperation. But not only that, because the increasing demand for corporate environmental performance makes ESG reporting an important opportunity to promote one's own brand identity.
How to increase competitiveness through ESG reporting
ESG reporting also takes into account many aspects of companies that are strategic to the competitiveness of the business model. It can emphasise not only the aspects that endanger the company – for example, its procurement strategy – but also many different areas related to its competitiveness (for example, employee turnover).
ESG reporting is therefore a compass that can help companies find the right path to ensure that they have a sustainable and long-term competitive business model.
It all starts with data, which must be accurate, up to date and comply with internationally recognised standards. Standards are actually crucial for ESG reporting because, on the one hand, they certify the validity of the information and, on the other, they provide a common measuring tool that makes it possible to compare ESG performance.
