By adopting sustainable practices, small and medium-sized businesses not only enhance their resilience against environmental challenges but also drive innovation, support local communities, and fulfill the growing consumer demand for eco-friendly products. Their collective impact on job creation and economic stability is crucial for achieving sustainable development goals and fostering inclusive growth. While there are several resources on sustainability available to the world’s largest corporations, the progress and actions of mid-market companies—the driving force of the global economy—have been largely unexplored.
In our new report, you’ll find the most up-to-date insights on the push towards sustainability for owner-manager businesses and other small to medium-sized entities—all backed by Grant Thornton International’s proprietary International Business Report (IBR) data.
We cover:
• The commercial opportunities pulling the mid-market towards sustainability.
• The barriers holding these businesses back and the concerns that regulation can bring.
• A deep dive into the global sustainability journey and how to help your business progress along it.
• A look at what the data tells us is coming next for small to medium-sized businesses regarding sustainability.
• Recommendations to help mid-market businesses build a more sustainable future.
Whether you’re navigating new sustainability regulations or looking for strategies to improve your ESG performance, our report provides clear and actionable insights that will help you move forward.
Download the full report now [8158 kb]Small and medium-sized businesses are being influenced by the commercial opportunities presented by sustainability. Consumers want to support brands with strong credentials, while investors are increasingly conscious of the long-term value it can provide. The report highlights the most important factors encouraging smaller businesses to focus on sustainability.
While businesses might be influenced by the commercial opportunities, they are being pushed by the regulatory environment. The current regulatory landscape for sustainability is complex and can, in some markets, be stringent. Regulations are predicted to increase in scope throughout this year and beyond, as new laws emerge globally that mandate increased transparency and disclosure of companies’ environmental, social and governance performance.
Globally, there are four key barriers that small and medium-sized businesses must overcome to successfully developing ESG initiatives, with high costs being the most pressing (15%). These businesses also feel challenged by the complexity of regulations and standards (13%), resource requirements (11%), and the volume of regulations and standards (10%).
Mid-market businesses undertake many different combinations of actions on sustainability. From research and the IBR data, the report proposes a model for a continuous and iterative ‘sustainability cycle’ which depicts the phases most small to medium-sized businesses will go through on the journey to becoming a sustainable business.
Momentum on the journey to a sustainable future within the mid-market is building. Critical to this, is the role these smaller entities play in international business. However heightened regulations can be considered a barrier to international business expansion, with a significant proportion of mid-market businesses in North America (87%) and Europe (68%) viewing it as a concern.
Take action sooner rather than later when it comes to reporting requirements.
Acting now will give you time to build up your knowledge and processes.
Being sustainable can offer a competitive advantage for mid-market firms who get it right.
Increasing your brand reputation helps drive business and investment.
Speaking to an adviser can help simplify the process and plot the right course.
Our job is to understand new requirements and help you navigate them.
Larger companies need to work with their mid-market partners.
Sharing expertise from navigating regulation can reduce risk and improve efficiency.
The sustainability journey is not a sprint.
It could take years to perfect a strategy, but the most important action is to take the first step.
To establish where you are and to find out where you need to go next on your sustainability journey, speak to your local Doane Grant Thornton team.
Why sustainable small and medium-sized businesses are vital to economies, societies, and the planet.
