For a small or medium-sized company, sustainability does not have to mean an extensive ESG strategy, expensive reporting, or another person filling out spreadsheets all day long.
It is much more useful to start with a few questions:
- Where do we consume the most energy, water and materials?
- Which waste costs us the most money?
- What data do customers or business partners want from us?
- Which suppliers are we critically dependent on?
- Which changes can simultaneously reduce costs and impact?
The goal is not to measure everything immediately. The goal is to find out where the company has the greatest costs, risks, and opportunities.
What you can do in 90 days
1. Determine why you are addressing sustainability
The reason must be specific. It could be, for example:
- request from an important customer,
- cost reduction,
- preparation for the tender,
- entry into a foreign market,
- better access to financing,
- reducing risks in the supply chain.
Without a clear business case, sustainability easily turns into endless data collection that no one will use.
2. Appoint a responsible person
A company needs someone who can keep the topic under control. But they shouldn't remain a lonely one-person "ESG department."
They need to have management support, access to data, and the ability to collaborate with operations, purchasing, HR, sales, and marketing. Otherwise, they will just be bypassing colleagues, asking for more spreadsheets, and gradually losing their zest for life.
3. Collect basic data
To get started, it's usually enough to:
- consumption of electricity, gas, fuel and water,
- amount and types of waste,
- main materials used,
- basic information about suppliers,
- working conditions and turnover,
- requests that come from customers.
Small and medium-sized enterprises can use the voluntary European standard VSME as a framework. It is simpler than CSRD reporting and is intended to make it easier for companies to provide information to banks, customers and other partners.
4. Choose two or three priorities
A company doesn't have to address everything at once. Changes that combine environmental benefits with specific business value make the most sense.
For example, it can be:
- reducing energy consumption,
- reduction of unnecessary packaging,
- utilization of waste material,
- change of supplier,
- extending the life of products,
- repairs instead of replacement,
- adjustment of working conditions.
Sustainability works best where it is not a feel-good bonus, but part of the company's economy.
Sustainability can open up new business opportunities
Many small and medium-sized companies are not required to report under the EU CSRD. But that doesn't mean that no one will ask them for sustainability data. A small business may be asked about its carbon footprint, energy consumption, the origin of materials or working conditions, even though it itself is not subject to mandatory reporting.
An example from a Czech company was heard at the Green Evolution Lab meeting Ardon, which produces workwear and equipment. The company started addressing sustainability because its large customers requested information about their carbon footprint. The original motivation was not a large-scale green transformation, but an effort not to lose important clients. However, while collecting data, the company also found opportunities to adjust materials, production and supplier relationships. Improved results in sustainability assessments subsequently made it easier for it to access larger foreign orders.
The example illustrates a key point: a company doesn't have to start with an idealistic vision. It can start with a specific business problem and gradually discover that sustainability brings savings, innovation, and new customers.
Sustainability is not a report. It's better corporate governance
For small and medium-sized businesses, sustainability doesn't have to be another separate project. In its practical form, it means better visibility into costs, materials, suppliers, people and risks.
A company doesn't have to start with a grand strategy. It's enough to start with data, choose a few priorities, and link changes to what's important to the business. In this way, sustainability becomes not just another administrative obligation, but a tool for a more stable and competitive company.
Green Evolution Lab
Green Evolution Lab is a program consisting of a set of 10 workshops and meetings focused on the issue of ESG, practically and without bullshit.
To owners and directors small and medium-sized companies, social enterprises or suppliers of larger companies helps to transform ESG obligations into a competitive advantage and gain an edge over the competition.
Workshops worth CZK 50.000 are thanks to the support of the European Union free. Their capacity is limited.
