by Marc Bernhardt, Partner at Invenio Rocks.
Managing a company in an environmentally and socially responsible manner (CSR: Corporate Social Responsibility) is not only the necessity and prerogative of large groups. Companies of all sizes face challenges and rising costs in materials, energy, and compliance coupled with higher expectations of customers, investors, communities, and stakeholders.
It is well proven that such companies generally outperform the market in terms of profits and competitiveness. However, many small and medium-sized entities (SMEs), that account for over 99% of all companies and provide 2/3 of employment across the OECD often lag in CSR performance. Based on our research there are several reasons but the main one is a lack of knowledge and resources to invest in environmental and social aspects. The need often arises when SMEs are forced by regulation or as a requirement of upstream larger customers. Therefore, it is important to stay ahead of regulations and shape best practices, before expensive “quick” fixes become necessary.
SME can make a difference by choosing a sustainable business case.
At Invenio, we examine the context of the company’s operations and broadly determine CSR risks. For a “beginner” level, we would collect around 10 indicators and then move onto an “intermediate” and “advanced” level covering all aspects in depth. Typical environmental indicators as an example include water consumption/recycling, energy consumption, use of renewable energy, GHG, waste generated and recycled, air and water emissions. All this data needs to be collected, processed, compared, and used to take remedial action. This must be done in the most cost-efficient manner without adding another bureaucracy level to SMEs, which is why we propose a web-based solution with our partner Informed 365. Costs are minimal and there is literally no administrative burden. Moreover, risks are clearly identified and addressed, and as an upside benefit, SMEs always achieve considerable cost savings in addition to triggering new innovations.