Publication

As the backbone of the European economy, SMEs are increasingly in the centre of the focus on sustainable transition.

This is because the relationship between SMEs and sustainability is increasingly interdependent, and it is no longer possible to ignore the impact of sustainability discussions on SMEs’ business and markets. The sustainable transition needs the involvement of SMEs, while long-term resilient SME success cannot be achieved without the integration of sustainability considerations into their business strategies.

Thinking about sustainability can feel overwhelming for many small businesses that deal with everyday challenges and business survival, especially given the current unprecedent COVID-19 crisis (see our publication COVID 19: 5 key steps for accountants to guide SMEs through the crisis). Yet, the pandemic has demonstrated the urgent need for more resilient and sustainable business practices and supply chains.

As SMEs’ trusted advisors, professional accountants can play a key role in this vitally important area and help SME owner-managers to think about their potential sustainability risks, mitigate them and tap into opportunities that stem from the sustainable transition.

This paper – the second one in our SME risk management series – aims to explain how and why sustainability is important for SMEs. It will explore the opportunities and risks that small businesses are facing in this area, including risks from not embedding sustainability into their business models. It will then elaborate how their accountants can help them integrate sustainability into their business strategies and operations. The risks are multi-faceted and may emerge from not meeting the expectations of key stakeholders (consumers, regulators, business partners, banks etc.), having weaknesses in the supply chain, being over-reliant on certain scarce resources and more.

See more of our SME risk management series, including our cover paper.

Related content

PublicationSME risk management

11 February 2020

EventPreparing for high-quality sustainability assurance engagements

3 October 2023

Publication5-step starting guide to a sustainable transition for SMEs

5 September 2023

NewsThe ISSB should develop more sustainability reporting standards and provide support to enact them

10 August 2023

Consultation responseISSB’s Consultation on agenda priorities

9 August 2023

NewsEurope needs robust sustainability reporting standards that enable a successful implementation

14 July 2023

UpdateSME Update

14 July 2023

UpdateSustainability

12 July 2023

Consultation responseEC’s draft delegated act on European Sustainability Reporting Standards (ESRS)

7 July 2023

Consultation responseIESBA’s proposed strategy and work plan 2024-2027

5 July 2023

Stories from practiceInsight from SME accountants: how to improve SMEs’ access to green finance

5 July 2023

EventCSRD: striving for consistent and quality sustainability assurance engagements across the EU

5 July 2023

EventCorporate Sustainability Due Diligence Directive

5 July 2023

UpdateSME Update

20 June 2023

NewsAccountancy Europe makes EC’s draft DA and EFRAG’s Draft ESRS comparison available

16 June 2023

EventDeveloping green skills for finance professionals

8 June 2023

Consultation responseIIASB’s proposed Global Internal Audit Standards

1 June 2023

UpdateSustainability

1 June 2023

EventTowards digital corporate reporting with CSRD

16 May 2023

UpdateSME Update

15 May 2023

UpdateSustainability

27 April 2023

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?