Celebrate Environmental Sustainability with us today on World MSME Day. How are MSME’s making it Big in the Sustainable Movement.
Small & Medium-sized Irish businesses have a pivotal role to play in Ireland’s transition to a sustainable future. It is now understood that the relationship between SMEs and Sustainability is symbiotic, and that the success of one, is very much dependent on the other. So much so, that it is now universally recognised that SME growth cannot be achieved without their adopting sustainable business strategies.
So, how can SMEs influence the future of the Sustainable Ireland of tomorrow?
Sustainability
Sustainability is an increasingly strategic focus for Irish SMEs, putting ESG impact on a parallel with profitability, and embedding it into organisational plans for future growth.
In being able to publicly demonstrate a commitment to sustainability, Irish SMEs are availing of numerous benefits not least of which are increased digital presence – the gateway to increased customer engagement and market share – and reputation waterfall, the concept of green credentials flowing down from existing customer to a pool of new consumers especially ‘green-fluenced’ Gen Z’rs.
Sustainability is the Key Ingredient
Sustainability is the Key Ingredient and Gen Z are the main players. Irish consumers want to see businesses wearing their green commitments on their sleeves by embracing sustainable and ‘people-first’ practices ahead of profitability.
By leveraging green innovation and exploring innovative strategies, SME’s can enhance their rep across an ever-growing network of consumers for whom sustainability has a higher currency than brand. Incorporating sustainability into the business model can be as basic as making changes to logistics, replacing new with recycled materials, and/or developing a workable hybrid working model for employees.
Being seen to walk the sustainable talk and put green-speak into business practice is key not just to retaining existing and gaining new customers, it is also central to sustainable change management, in both senses of the word.
Fundamental to that transition to successful sustainable business operations is the Triple Bottle Line.
What does Triple Bottom Line mean?
A concept that’s been around since the mid-1990s, Triple Bottom Line accounting is a framework for sustainable business that incorporates three pillars of performance – People, Planet, Profit.
In a nutshell, it aims to place equal emphasis on environmental, financial and social performance, putting ESG at the heart of business investment and growth planning.
Siloed into three ‘P’s, the Triple Bottom Line helps businesses, particularly SMEs, to measure and understand their duties and obligations under the umbrella of ESG – Environmental, Social and Governance – and what impacts their business activities might have in these areas. Once assessed, business owners can adjust, adopting best sustainable business practices to achieve positive ESG impacts whilst simultaneously boosting profits.
Believe it or not, it is Ireland’s SMEs who are driving this change.
How can Irish SMEs drive Sustainable Change?
Good things come in SME packages. Or so the saying goes!
Small and Medium Enterprises are your local business, growing organically and servicing and supplying the community with minimal negative and maximum positive impact.
SMEs through their more holistic approach and smaller scale, automatically default to sustainable business practices. In the larger corporate landscape, success revolves around financial performance and shareholder dividends.
Business planning models are driven by the need to maximise profits and grow market share. SMEs, having the upper hand of independence, can explore and leverage more eco-friendly and socially beneficial ‘micro services’ business models.
While big business leaders are often focussed on economic growth, SMEs have discovered the ability to optimise their business – standing, reputation, model – to effect positive change without hitting their bottom line.
In fact, rolling out sustainably-driven initiatives has propelled many SMEs towards ESG-oriented business success.
More and more, Irish SMEs are expanding into more innovative and value-adding sustainable activities such as ‘knowledge industries’ ie those reliant on subject matter experts (or human capital) and technology, for example Health BioTech, Software Development and Advertising & Media and other business lines which are a magnet for university graduates.
Which Industries are at the Fore of Sustainable Change?
By branching into industries that tap into human over natural resources, SMEs are leading the zeitgeist in sustainable change, offering knowledge-driven professional service offerings similar to those delivered by companies like CG Business Consulting, who advocate methodologies such as Sustainability through Skills Transfer, a model through which knowledge transfer is a link between dynamic capability and sustainable strategy, and the building of competitive advantage). It’s a thing – roll with it.
It’s no coincidence that the Advertising/Media industry in Ireland has grown exponentially over the past two decades.
Now worth over Euro 1.5 billion, it has grown over 10% in the twelve months since 2022.
With progressive, youth-driven agencies like ThinkHouse leading the ‘green-charge’ it’s no surprise that the media-comms sector in Ireland is a hotbed of talent, ingenuity, forward-thinking and above all, commitment to sustainability.
Due to their ‘smaller scale’, Irish SMEs can seamlessly adopt eco-friendly practices. From using environmentally friendly packaging to locally sourced and/or organic products, these micro-businesses are leading by example when it comes to adopting Sustainable Practices. This commitment to sustainability is one of the key drivers to Ireland’s continued, if slow, progress towards a cleaner, greener future.
Environmental Sustainability
Environmental Sustainability is forcing Irish businesses to look beyond making short-term gains and analyse the long-term negative impacts their activities are having both on our environment and society.
According to IBEC, SMEs contribute to just over 70% of total Irish employment and account for 99% of active enterprises, so it should come as no surprise that they are the main drivers of sustainability across our business landscape.
The role of SMEs in driving Sustainability should not be under-estimated, and is in fact, one of tremendous importance for Ireland’s Sustainability Agenda, for its realisation, and for future generations. It is an indisputable fact that the relationship between Irish SMEs and our Climate Action Plan is irrevocably tied.
The power of the Irish SME is immeasurable and as the above title suggests, they may be micro but they are also mighty in their contribution to employment, economy, society and sustainability. SME’s can and are making very big differences in their own various ways, differences which should be celebrated and showcased, because even the smallest Irish business can create a significant, positive change.
CG Business Consulting
CG Business Consulting is an industry leading Irish businesses specialising in and offering expertise in Sustainability Consulting. We provide guidance to SMEs across the full spectrum sectors and industries on quick and seamless adoption of eco-friendly practices and implementation of ISO-sustainable management system standards such as ISO 14001 Environment and ISO 50001 Energy.
Our subject matter expert Consultants work with our clients to optimise energy consumption, improve waste management and most importantly, to develop sustainable strategies that align with their specific industry requirements.
FURTHER INFORMATION
Sustainability is a priority for our business and we want to work with you to make it a strategic priority for yours.
Find out more about our Sustainability Services or call us on 01 620 4121.
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