{"id":16987,"date":"2023-11-28T14:52:13","date_gmt":"2023-11-28T14:52:13","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=16987"},"modified":"2023-11-28T14:56:31","modified_gmt":"2023-11-28T14:56:31","slug":"cop28-sustainability-reporting-small-business","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/cop28-sustainability-reporting-small-business\/","title":{"rendered":"COP28: Why sustainability reporting matters to your small business"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tCOP28: Why sustainability reporting matters to your small business\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-11-28T14:52:13+00:00\">28 November, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"COP28: Why sustainability reporting matters to your small business\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/cop28-sustainability-reporting-small-business\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/sjazar\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/11\/SJ-Azar-350x350.jpg\" class=\"entry-author__image\" alt=\"sj-azar-profile-picture\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/11\/SJ-Azar-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/11\/SJ-Azar.jpg 400w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">SJ Azar<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">The world\u2019s largest annual climate conference, held by the United Nations (UN), is taking place in Dubai from 30 November to 12 December 2023.<\/p>\n\n\n\n<p class=\"\">At the COP28 summit, governments and big business will pledge targets to help alleviate the future damage. Small businesses are expected to follow suit to meet these targets.<\/p>\n\n\n\n<p class=\"\">But how can your small or medium-sized business do that? <\/p>\n\n\n\n<p class=\"\">In this article, we cover the key issues preventing more businesses from reporting on their sustainability efforts, and what you can do to change this.<\/p>\n\n\n\n<p class=\"\">Here\u2019s what we cover\u2026<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#sustainability\">Sustainability reporting challenges for SMEs<\/a><\/li>\n\n\n\n<li><a href=\"#what\">What are the issues around sustainability reporting?<\/a><\/li>\n\n\n\n<li><a href=\"#are\">What are the benefits of sustainability reporting?<\/a><\/li>\n\n\n\n<li><a href=\"#the\">The \u201cGreen Finance\u201d opportunity<\/a><\/li>\n\n\n\n<li><a href=\"#to\">What to look for when considering sustainability reporting<\/a><\/li>\n\n\n\n<li><a href=\"#final\">Final thoughts<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"sustainability\">Sustainability reporting challenges for SMEs<\/h2>\n\n\n\n<p class=\"\">Small and medium-sized enterprises (SMEs) account for upwards of <a href=\"https:\/\/www.worldbank.org\/en\/topic\/smefinance#:~:text=SMEs%20account%20for%20the%20majority,than%2050%25%20of%20employment%20worldwide.\">90% of all businesses<\/a> worldwide.<\/p>\n\n\n\n<p class=\"\">And while we hear of titans of industry maligned in the press as major polluters, the volume of SMEs actually means this accountability skews towards the small business space.<\/p>\n\n\n\n<p class=\"\">While the big industry hitters have the structure and funds to get their targets and reporting right, a disconnect is being noticed by the intentions of SMEs to be more sustainable, versus their ability to report on their progress.<\/p>\n\n\n\n<p class=\"\"><a href=\"https:\/\/www.sage.com\/en-gb\/company\/sustainability-and-society\/planet\/#cop28\">Path for growth: Making sustainability reporting work for SMEs<\/a> is a new report by Sage, the International Chamber of Commerce (ICC), and PwC UK that surveys more than 16,000 SMEs. <\/p>\n\n\n\n<p class=\"\">It highlights the point that 83% of SMEs prioritise sustainability but only 8% report on their impact.<\/p>\n\n\n\n<p class=\"\">While they may have earnestly pledged to be more sustainable, they still aren\u2019t able to qualify or quantify how they\u2019ve achieved it.<\/p>\n\n\n\n<p class=\"\">The statistical analysis from the report suggests that if the barriers to reporting for SMEs were removed, this would triple the number of SMEs who start reporting in the next 2 years\u2014adding 51 million SMEs to the global reporting pool.<\/p>\n\n\n\n<p class=\"\">But as COP28 comes around for another year of climate pledges, despite COP27\u2019s best efforts, targets are still not being met, meaning there\u2019s more need for SMEs to report on any progress accurately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What are the issues around sustainability reporting?<\/h2>\n\n\n\n<p class=\"\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/sustainability\/\">Sustainability<\/a> reports are an essential route to accountability, helping your business\u2019 stakeholders to understand the company\u2019s carbon impact.<\/p>\n\n\n\n<p class=\"\">Reports outline strategy and map out target plans for the coming years. <\/p>\n\n\n\n<p class=\"\">However, the Sage report highlights a lack of reporting isn\u2019t necessarily due to not having these roadmaps, as 21% of SMEs are poised and ready to report, having set sustainability goals for their business.<\/p>\n\n\n\n<p class=\"\">The report identifies issues in getting the reporting done and revealed 2 main blockers as mentioned by the majority.<\/p>\n\n\n\n<p class=\"\">Path for growth reveals 77% of those surveyed cited both the high upfront costs and the complex reporting standards as blockers. It found that \u201cthis prevents them from taking relevant action to be more sustainable, and from realising the business benefits of taking action, when they do\u201d.<\/p>\n\n\n<div class=\"video-container-wrap -mode-full\"><div class=\"video-container\"><video\n\t\t\t\tclass=\"sage-video video-js vjs-default-skin \"\n\t\t\t\twidth=\"640\"\n\t\t\t\theight=\"360\"\n\t\t\t\tdata-setup='{ \"controls\": true, \"aspectRatio\" : \"16:9\", \"poster\": \"https:\/\/img.youtube.com\/vi\/EGHYqTDagoo\/maxresdefault.jpg\", \"techOrder\": [\"youtube\"], \"enablejsapi\": 1, \"origin\": \"https:\/\/www.sage.com\", \"sources\": [{ \"type\": \"video\/youtube\", \"src\": \"https:\/\/www.youtube.com\/watch?v=EGHYqTDagoo\"}], \"youtube\": { \"ytControls\": 0, \"cc_load_policy\": 3, \"modestbranding\": 1, \"hl\": \"en_GB\", \"playsinline\": 1 } }'\n\t\t\t\tcrossorigin=\"\"><\/video><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"are\">What are the benefits of sustainability reporting?<\/h2>\n\n\n\n<p class=\"\">As well as the primary directive of saving the planet, showing customers that your business aligns with what they care about is a huge plus. <\/p>\n\n\n\n<p class=\"\">The <a href=\"https:\/\/www.sage.com\/en-gb\/company\/sustainability-and-society\/#cop28\">Path for growth<\/a> report showed that customers were assessing <a href=\"https:\/\/www.sage.com\/en-gb\/company\/sustainability-and-society\/#cop28\">company sustainability<\/a> when considering what to purchase, and from where.<\/p>\n\n\n\n<p class=\"\">Think of sustainability reporting like putting your money where your mouth is. You say you want to run your business more sustainably; this is the plan that outlines just how you\u2019ll achieve that with the proof you\u2019ve delivered.<\/p>\n\n\n\n<p class=\"\">It gives you a clear picture of what your business needs to do to meet its sustainability goals and the cost involved. <\/p>\n\n\n\n<p class=\"\">It also provides your customers and potential investors with an insight into how your business manages environmental, social, and governance (ESG) targets, and helps explore whether they align with your company\u2019s values.<\/p>\n\n\n\n<p class=\"\">Remember, one business\u2019 stronger stance on sustainability could outweigh others in the minds of not only the consumer but the investor too. Businesses that put lip service over clear pathways to sustainability can face the wrath of bad press and accusations of \u2018greenwashing\u2019.<\/p>\n\n\n\n<p class=\"\">Another clear benefit is the knock-on effect outside the immediate sphere of business. Declaring one\u2019s roadmap to sustainability adds weight to a serious shift in society\u2019s potential response to climate change.<\/p>\n\n\n\n<p class=\"\">Becoming a louder part of the collective voice for change will serve to unlock new opportunities, both for the benefit of your business, and the planet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the\">The \u201cGreen Finance\u201d opportunity<\/h2>\n\n\n\n<p class=\"\">Financial institutions and investors across various global partnerships have made commitments to reduce their financed emissions. <\/p>\n\n\n\n<p class=\"\">This means investor funds are increasingly tied to sustainability performance.<\/p>\n\n\n\n<p class=\"\">Measuring and reporting of accurate sustainability data will be essential for SMEs to continue securing funds as the sector moves towards green finance.<\/p>\n\n\n\n<p class=\"\">There\u2019s an estimated $900bn (\u00a3710bn) opportunity in green finance for SMEs, to help pay for the likes of solar panels, E electric vehicle (EV) fleets and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"to\">What to look for when considering sustainability reporting<\/h2>\n\n\n\n<p class=\"\">Due to the complex nature of reporting, your business may need to consider several things to get the work done. <\/p>\n\n\n\n<p class=\"\">It\u2019s important to realise that expenditure in this area will be the key to doing things correctly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">People<\/h3>\n\n\n\n<p class=\"\"><a href=\"https:\/\/www.sage.com\/en-gb\/company\/sustainability-and-society\/planet\/#cop28\">Fewer than 2% of respondents<\/a> reported having a designated employee who can facilitate all the steps necessary when dealing with sustainability reporting. <\/p>\n\n\n\n<p class=\"\">Getting the right support in-house is key, so make this a priority. <\/p>\n\n\n\n<p class=\"\">They will become a much-needed employee as the urgency to meet global targets progresses and the pressure increases.<\/p>\n\n\n\n<p class=\"\">Working with third-party partners can also help. Whether that\u2019s through filling in any gaps in your sustainability plan, or helping you with your <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/carbon-accounting-biggest-questions-answered\/\">carbon accounting<\/a>, surround your business with experts to make the process easy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Technology<\/h3>\n\n\n\n<p class=\"\">Investing in good processes and <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-earth\/\">technology<\/a> will ensure your sustainability efforts don\u2019t go unnoticed.<\/p>\n\n\n\n<p class=\"\">In the Sage report, 63% of SMEs said the right digital tools will make it easier for them to carry out their sustainability reporting. <\/p>\n\n\n\n<p class=\"\">Tools such as the <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-earth\/\">Sage Earth<\/a> carbon calculator, for instance, can take some of the pain out of calculating your business\u2019s carbon footprint.<\/p>\n\n\n\n<p class=\"\">This also shows your stakeholders, shareholders, employees, and customers that you are taking this as seriously as it deserves, which will only increase your company\u2019s attractiveness and reputation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts<\/h2>\n\n\n\n<p class=\"\">Due to the continued effect of climate change on the world and the world\u2019s businesses, affecting everything from people\u2019s livelihoods, supply chains, the cost of living, and global policies, no doubt you\u2019re already aware of the shortening timeframe left to make a difference.<\/p>\n\n\n\n<p class=\"\">If ever there was a time to invest in your future as an SME, it would be now. <\/p>\n\n\n\n<p class=\"\">Ensure your sustainability reporting is robust and clear so your business can align on hitting and exceeding those targets. Your customers, investors, and the planet will thank you.<\/p>\n\n\n\n<p class=\"\"><em>To learn more about what Sage is doing for sustainability, head over to the <a href=\"https:\/\/www.sage.com\/en-gb\/company\/sustainability-and-society\/planet\/\">sustainability and society page<\/a> to download and read Path for growth, download our reports, and see how we can help your business keep reaching for those targets.<\/em><\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>With COP28 in mind, we cover issues preventing more businesses from reporting on their sustainability efforts, and how you can change this.<\/p>\n","protected":false},"author":1760,"featured_media":16410,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":true,"post_featured_image_hide":false,"footnotes":""},"categories":[9],"tags":[233],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[109,232],"coauthors":[389],"class_list":["post-16987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","tag-sustainability","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"SJ Azar","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1350038104.jpg","imagine_tags":{"109":"Small business","232":"Sustainability"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/16987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1760"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=16987"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/16987\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/16410"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=16987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=16987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=16987"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=16987"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=16987"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=16987"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=16987"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=16987"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=16987"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=16987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}