Empowering SMEs: Fostering sustainability reporting for business growth

Small and Medium-sized Enterprises (SMEs) play a pivotal role in the global economy, contributing significantly to job creation and serving as essential components of large companies’ supply chains. According to the International Labour Organization (ILO), SMEs account for more than two-thirds of employment opportunities worldwide, underscoring their critical role in shaping a sustainable future.

SMEs in Ghana are major contributors to job creation. They absorb a substantial portion of the workforce, providing employment opportunities across diverse skill levels and sectors. According to statistics from the Ghana Statistical Service, SMEs account for a significant percentage of total employment in the country. They often form part of the supply chains for larger corporations. SMEs role as suppliers or service providers contributes to the overall efficiency and competitiveness of these larger entities, supporting their growth and success.

In recent years, the spotlight on supply chain sustainability has increasingly emphasized the need for SMEs involved in global value chains to elevate their sustainability practices. This entails enhancing their sustainability management, performance, and transparency to sustain business relationships, access markets and funding, optimize operational efficiencies, and ultimately bolster their competitive edge. Many SMEs face challenges due to a lack of expertise and capacity to provide vital information on their sustainability performance while concurrently enhancing productivity. By integrating sustainability metrics into the fabric of their operations, Ghanaian SMEs can not only measure their sustainability performance but also enhance productivity and competitiveness. This concept envisions a holistic approach that aligns business goals with environmental and social responsibility, ensuring a sustainable and resilient future for SMEs in Ghana. The integration of sustainability metrics also fosters resilience and competitiveness.

Properly implemented, the concept enables a competitive advantage, differentiating the SMEs in the market by showcasing their commitment to sustainability. It also attracts environmentally conscious consumers and investors. It saves costs by identifying operational inefficiencies and reducing resource consumption. It also mitigates risks associated with resource scarcity and regulatory compliance. These benefits also build a positive brand image by demonstrating social responsibility and environmental stewardship as a business, strengthening relationships with customers, suppliers, and the local communities. It offers resilience to market changes, enabling SMEs to anticipate and adapt to market trends, regulatory changes, and consumer preferences. That results in the development of a flexible and responsive business model that can withstand external shocks.

A recently organised transformative capacity-building session on sustainability reporting was an important attempt to address this critical need for knowledge and capacity-building. SMEs should pay attention to these initiatives, such as the Global Reporting Initiative (GRI), which, in collaboration with SCORE Training Solutions Ghana (STSG), is looking to commence these transformative capacity-building sessions on sustainability reporting for SMEs in Ghana. It aims to empower them to navigate and comprehend the GRI Sustainability Reporting Standards (GRI Standards) modular framework. By imparting this essential knowledge, the initiative intended to enable SMEs to grasp the significance of integrating sustainability practices into their operational frameworks.

SMEs may gain insights into the intrinsic link between sustainability and business success and receive guidance through sustainability reporting principles and methodologies, helping them comprehend its value as a tool for fostering long-term viability and resilience in a rapidly changing business landscape.

For example, such collaborative platforms between GRI and STSG represent a concerted commitment to bridge the knowledge gap and empower SMEs to adopt sustainable practices. By providing these enterprises with the necessary tools and knowledge, the initiative enables them not only to survive but thrive in a competitive marketplace while contributing meaningfully to a more sustainable global economy.

In conclusion, fostering sustainability reporting using the GRI standards among SMEs is not just a matter of compliance or obligation; it’s a strategic imperative that fuels growth, enhances competitiveness, and ensures a more sustainable future. Empowering these enterprises with the knowledge and resources to embrace sustainability practices is an investment in the economic, social, and environmental prosperity of nations and the world at large.

 The author is an Environmental Scientist and a GRI Certified Sustainability Professional

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