Ask the Expert

As a small business, does ESG really impact me?

Yes. And it’s not a question of if, but when. For SMEs, the pressure isn’t really coming from things like regulatory pressure but is being driven by larger supplier relationships and rapidly changing expectations when it comes to winning new business. More and more frequently, small businesses are being asked by their larger partners or corporate clients to evidence the efforts they’re making. This is especially true when tendering for contracts, bidding for new work, or renewing relationships.

How do you properly address those questions?

The expectation is that you can communicate your efforts and provide evidence that shows what you’re saying is actually happening. Without evidence or data, your response holds no weight. Many businesses initially talk about being ‘environmentally aware’ or say ‘we look to be sustainable,’ but when pressed for details, it quickly becomes clear there’s nothing behind the statement.

Two clients I work with today engaged me following similar awkward conversations with large clients, which resulted in ultimatums. The process for what good looks like is a combination of communicating:

1. Where you are today

2. Showcasing the impact of what you’re doing with evidence

3. Your longer term plans & commitments

Using this approach, those two businesses not only renewed those relationships but one won a £5 million contract, with their sustainability efforts cited as the main differentiating factor.

What’s a good starting point?

Like anything in business, you need a plan. Without it, you risk running from pillar to post, spending effort in unnecessary places, or simply not knowing where to begin.

To start, I’d recommend three things:

• Understand what your peers (and competition) are doing. You don’t need to be perfect, but better than your competition is a great start.

• Keep it simple. Start by looking at policies and behaviours to drive change. Don’t jump straight into spending money.

• Recognise this is about communication. Being able to tell your story effectively is far better than doing loads but not being able to showcase it properly.

How can I help you?

Fractional support is an excellent option for smaller businesses on a budget. By supporting you for anything from a few hours a month up to a few days, I can help you address all these issues and get you on the right path. Whether it’s about just getting started or becoming best-in-class, let me reduce the burden, get stuff done (so you don’t have to), and put you in the shop window.

Special Offer for KICC Members

For the first five KICC members to contact me, I’m offering a free free sustainability maturity analysis.

Here’s what you’ll get:

• 1hr discovery workshop

• I’ll run short analysis to gauge your current maturity, strengths, and opportunities.

• This will be summarised in a custom report, covering your current state of play, what you need to be aware of, the gaps to close, and what good looks like.

To grab one of the five spots or to ask any questions, contact me at dave.carter@auditel.co.uk

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