Should SMEs Consider Setting up an ESG Management Framework?
Definitely yes if you value your business and develop it for a long term. It will be a pre-requisite to enter the supply chain of more leading companies. Companies have more resources should action to set up their own ESG management framework, building up a basic policy on ESG and start managing quantitative data.
While SMEs often grapple with limited resources and budget constraints in ESG development, it’s crucial to recognize that ESG and sustainability have transcended from being merely value-added to becoming core imperatives in the business world. To remain competitive and ensure future viability, SMEs must respond to heightened expectations from the government, customers, and other stakeholders. Amid the diverse realms of ESG management, establishing a robust carbon emissions management framework should be a top priority.
In recent years, larger companies have predominantly focused on managing Scope 1 and Scope 2 emissions, with only simplified reporting on Scope 3 emissions. However, there is a notable shift toward comprehensive carbon management and auditing, encompassing Scope 1-3 emissions.
In essence, Scope 3 emissions refer to those indirectly produced, not stemming from activities related to assets owned or controlled by the reporting entity. They entail emissions occurring along the entire value chain, highlighting the impact of buying, using, or disposing of products from suppliers. As a result, larger corporate clients are increasingly seeking detailed greenhouse gas (GHG) information from SMEs, driven by a desire to understand the Scope 3 emissions associated with the products they procure from their supply chain. Acknowledging and addressing this evolving landscape is vital for SMEs seeking to navigate the shifting expectations and demands of the business ecosystem.
How Can GreenCo Helps SMEs in ESG?
GrennCo’s sustainability advisory services are designed to empower companies with the tools, knowledge, and credibility needed to excel in carbon management and environmental sustainability. By partnering with us, you gain access to expert advice, cutting-edge tools, and the assurance needed to achieve your sustainability goals. Let us help you navigate the path to a lower carbon future, driving positive environmental impact and enhancing your corporate reputation.