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A new guide from the ACCA ( Association of Chartered Certified Accountants) has recognised the “vital role” that SMEs play in the value chains of all organisations globally.
Entitled ‘Sustainability reporting – SME guide’, ACCA revealed as the demand for sustainability-related information increases, all organisations “must be ready” to provide information related to their approach and progress in managing sustainability-related risks and opportunities.
It also stated that this demand extends beyond the organisation to its value chain and comes from regulators, investors and many other stakeholders. SMEs are in scope because they comprise 90% of all organisations globally, and so are an “essential part of the value chain”.
It added that the enablers to better business that result from “communicating and using sustainability-related information may help SMEs gain new competitive advantage”.
Report co-author Sharon Machado, head of sustainable business at ACCA, said: “The creation and use of sustainability-related information helps SMEs, their advisers and stakeholders to see and take advantage of their opportunities and manage their risks. This will put SMEs in a much stronger position financially – making it easier to attract investment and obtain preferential terms of trade with suppliers. In the battle for talent, it will help them recruit and retain high-calibre employees.”
Report co-author Aaron Saw, head of corporate reporting insights – financial at ACCA, added: “Although SMEs may consider these demands challenging, especially at times of significant financial pressure, evidence suggests the effort is justified. Therefore, we encourage all SMEs to take small first steps and do what’s possible in communicating sustainability-related information with a view of becoming better businesses.”
