Sustainability will play an increasingly important role within companies in 2024 in many different areas. After all, it is a topic that is important to employees, customers, clients and suppliers. Due to the large number of stakeholders, it will also become an essential part of business investments.
More than half of all business leaders plan to increase their sustainability investments by 2024. This is approximately 20% more than in 2023. A major reason for this is the belief that climate change will have detrimental effects on business operations. For example, consider prolonged droughts, rising water levels and heavy rainfall. Why is this relevant to SMEs, and how will your company become attractive to investing companies?
Sustainability investments as an opportunity
Another motivation for companies to invest more in sustainability is the perception of sustainability. In 2022, only 21% of the interviewed business leaders viewed sustainability as a competitive advantage over their competitors. In 2024, this percentage moved to 63%, a staggering 42% increase. Business leaders are taking an increasingly optimistic and opportunistic view of sustainability. In addition, they also recognise that it is not commercially viable to neglect sustainability. Namely, 61% of business leaders suspect that a lack of sustainability is risky to their organisation's long-term vision.
Finally, financial incentives are also an important reason why companies are becoming more focused on sustainability investments. The Task Force on Climate-related Financial Disclosures (TCFD) is at the forefront of these increased investments in Europe. This emphasises the transition to carbon neutrality through good access to sustainable capital, green energy and employee education.
The role of SMEs within this movement
With the introduction of the Task Force on Climate-Related Financial Disclosures (TCFD), large companies now have a legal reason to invest in sustainability beyond commercial and intrinsic motivations. As many SMEs are part of the supply chain of these larger companies, they can reap significant benefits by adopting sustainable practices.
This shift means SMEs need to develop specific business activities to remain attractive to large corporations. For example, they might establish energy efficiency strategies to reduce energy consumption. Adequate employee policies are another example that is going to become increasingly important. SMEs can use these initiatives to justify the costs of transitioning to more environmentally friendly methods, as sustainability now also has commercial incentives.
How can a small business easily get started?
The path for SMEs towards a sustainable future is filled with challenges but also with great opportunities. They often lack a clear plan, and they need help and knowledge to become truly attractive to investors and large companies. Additionally, SMEs need to demonstrate their sustainability projects based on objective grounds.
We understand SMEs' crucial role in this and are ready to support you affordably. Through practical assessments and an intuitive CO2 Calculator, SMEs can measure their sustainability within a matter of hours. Curious about how it works?
