Publication

15 July 2020

SME risk management: sustainability

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.

 

Related content

PublicationSME risk management

11 February 2020

EventPostponed: The path to high-quality non-financial information assurance

1 October 2020

UpdateSME Update

24 September 2020

NewsEUIPO and Accountancy Europe join to support SMEs

24 September 2020

NewsAccountancy Europe welcomes cooperation by sustainability reporting bodies

23 September 2020

Consultation responseEC’s roadmap on obligation for companies to publish non-financial information

18 September 2020

BlogWhat COVID-19 made clear: corporate governance needs to focus on the right risks

8 September 2020

Consultation responseEC’s consultation on the VAT scheme for travel agents

2 September 2020

Blog4 steps to a sustainable recovery from COVID-19

6 August 2020

Consultation responseIIRC’s 2020 Revision: Framework

31 July 2020

Consultation responseIAASB’s consultation on proposed guidance: extended external reporting (EER) assurance

24 July 2020

Podcast Public sector and the coronacrisis (Part 2)

17 July 2020

Consultation responseEC’s consultation on the renewed sustainable finance strategy

15 July 2020

UpdateSME Update

3 July 2020

NewsEquity: the key to unlocking a sustainable economic recovery

2 July 2020

Consultation responseEC’s consultation on a new digital finance strategy for Europe/FinTech action plan

30 June 2020

UpdateSustainable Finance

30 June 2020

EventEurope’s economic recovery from COVID 19

30 June 2020

NewsJoint statement on the revision of the non-financial reporting directive in the context of Covid-19

23 June 2020

NewsAccountancy Europe leads the non-financial reporting debate

17 June 2020

PublicationFollow-up paper: Interconnected standard setting for corporate reporting

15 June 2020

Sign up for our newsletter

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