Growing numbers of small and medium-sized enterprises (SME), spanning a range of sectors and geographies, are signaling their commitment to an ESG-rooted integrated purpose—that is, a people, planet, and profit triple–bottom-line purpose. This article explores SME-related ESG opportunities and challenges. It also describes B corporation certification and discusses third-party attestation services.
A growing number of institutions of all sizes, sectors, and geographies are signaling their commitment to an environmental, social, and governance (ESG) integrated purpose: a triple-bottom-line stakeholder purpose serving people, planet, and profits. For example, the results of a 2022 NAVEX Global survey revealed the following.
The vast majority of respondents say their company has either increased its focus (46%) on ESG this year or that its focus will stay the same (41%).
Only 3% of respondents report plans to decrease spending on ESG factors in 2022, an even smaller group than the 6% who reported plans to decrease ESG spending in 2021.
83% of respondents agree strongly or somewhat that a business’ brand reputation is impacted by ESG factors (https://bit.ly/3IExnn2).
What is driving this ESG movement? A mandate of sorts. A case in point is recent actions by the SEC demonstrating a commitment to greater transparency in ESG impacts by issuers (https://bit.ly/3AOHvYt). For example, on May 25, 2022, the SEC proposed to enhance disclosures by certain investment advisors and investment companies about ESG investment practices. According to SEC Chair Gensler, “It is important that investors have consistent and comparable disclosures about asset managers’ ESG strategies so they can understand which data underlies funds’ claims and choose the right investments for them.”
Read the full article here: https://www.cpajournal.com/2022/10/18/esg-integration-and-small-business/