According to a 2023 Ernst and Young survey, 87% of C-suite executives believe ESG initiatives are vital for the future of their organisations. This is not just about compliance; it’s about driving growth, cutting costs, and facilitating strategic planning. However, many SMEs remain sceptical, viewing ESG as a complex, expensive box-ticking exercise.
New EU regulations coming into effect in January 2025 will significantly impact businesses. The Corporate Sustainability Reporting Directive (CSRD) will require companies to disclose their sustainability practices and comply with stringent environmental standards. SMEs must prepare to meet these regulations to avoid penalties and remain competitive. There are 5.5 million SMEs in the UK, with 476,000 in urgent need of a comprehensive ESG plan to meet these expanding regulations.
How to Begin Your ESG Journey
At CarbonNow, we’ve noticed a significant trend among our clients towards prioritising carbon auditing within their ESG strategies. Carbon auditing offers a tangible, actionable starting point, helping businesses to understand their emissions and make measurable progress while also laying the groundwork for broader ESG initiatives. Here’s why carbon auditing is an effective ‘starter for ten’:
Clarity and Focus: Provides clear metrics and actionable insights, making it easier to understand environmental impact and identify areas for improvement.
Cost-Effective Compliance: Addressing carbon emissions early helps avoid unexpected costs from future regulations including PPN06/21.
Competitive Advantage: Enhances reputation by demonstrating a commitment to reducing carbon emissions, attracting ESG-conscious stakeholders.
Foundation for broader ESG Goals: Builds momentum for tackling other ESG components, such as social responsibility and governance improvements.
At CarbonNow, we support businesses in their ESG journey with comprehensive carbon audits, reduction plans, and sustainability statements tailored to each business’s needs. Starting with carbon auditing provides a clear, manageable pathway into ESG. With the right support, businesses can comply with regulations and thrive in an eco-conscious market.
The journey to carbon neutrality starts with Measuring your carbon footprint and that's where our Carbon Audit can help. Let us do the hard work and categorise your emissions for you! Get in touch to arrange a no-obligation call, today. Drop us an email hello@carbonnow.co.uk