ANDOn June 27 we celebrate World SME Day, a date to reflect on the importance of small and medium-sized businesses in the sustainable development of our society. In Spain, SMEs represent 99.9% of the business fabric, generate 66% of total employment and contribute close to 62% of the national GDP. In the UN Global Compact Spain, we have more than 900 SMEs adhered to the initiative, which represent 55% of the more than 1,700 partner entities; while, at a global level, more than 56% of the 25,000 participating companies are small and medium-sized companies.
1. How are you advancing in sustainability?
Small and medium-sized businesses are making significant progress in adopting sustainable practices, turning sustainability and ESG aspects (Environmental, Social and Governance) in fundamental pillars for its development.
According to the 2024 Sustainable Development Consultation prepared by the UN Global Compact Spain, 85% of SMEs are familiar with the Sustainable Development Goals (SDGs), which represents a significant increase compared to previous years. In addition, 33% of these companies prioritize the SDGs and analyze their impact on them, increasing this focus by 10% from 2022.
Sustainability training has proven to be essential for the effective management of ESG criteria. Currently, 66% of SMEs provide some form of training. training on sustainability issues for your interest groupsa significant increase compared to the 48% recorded in 2022. Likewise, 81% of SMEs indicate that work in sustainability offers them competitive advantages, highlighting the importance of these efforts in a market that is increasingly aware of sustainability.
The constant commitment to sustainability allows SMEs to not only meet market expectations, but also lead the way towards a more balanced and responsible future. By integrating these principles into their operational core, SMEs can establish a model for other companies to follow, demonstrating that Success and sustainability go hand in hand.
2. Challenges and opportunities for SMEs
SMEs play an essential role in the global and national economy, but face significant challenges that limit their impact on ESG (Environmental, Social and Governance) aspects. Limited access to finance makes it difficult to invest in green technologies or sustainable practices, while implementation costs can be significant. Lack of staff, time and specialist knowledge further complicates sustainability integration. In addition, regulatory compliance requires constant adaptation, which can be complex, and political and economic instability affects long-term planning. Finally, large companies value the sustainability of their suppliers, thus increasing business opportunities for sustainable SMEs.
However, there are not only barriers, but also important opportunities which they can access if they manage to position sustainability at the center of their corporate strategies. They can access new markets driven by the growing demand for sustainable products and services, generate long-term savings through the efficient use of resources, and form strategic alliances with large companies that value the sustainability of their suppliers. In addition, they can improve their reputation and trust in their brand, access public contracts that consider sustainability criteria, and stay ahead of future regulations, avoiding sanctions and improving their competitiveness in the market.
In short, SMEs have the opportunity to be part of the change towards a more sustainable and fair world, without leaving anyone behind, and carving out a niche for themselves in a market that is increasingly aware of the importance and opportunities that sustainability offers.
3. Four key resources to advance sustainability
Transforming into a sustainable business can be a big challenge, especially when resources are limited and you don’t know where to start. It is essential to have the right knowledge to be able to act. With the increasing focus on sustainability and ESG criteria, It is vital to train SMEs to become leaders of change.
At the UN Global Compact, we support small and medium-sized companies, providing them with a wide variety of practical resources and tools so that they can create their own sustainability roadmap: training for employees, awareness-raising materials for CEOs, resources practical courses, personalized learning routes, accelerator programs and work groups. SMEs have to become aware of their role and actively commit to business sustainability.
We tell you 4 key resources that you cannot miss to start making progress in sustainability:
- Become a company that provides change throughout the value chain with our supplier training program sustainableYou will be able to train for 6 months in sustainability, SDGs, the Ten Principles of the Global Compact, sustainability reporting, incentives and internationalization of sustainable companies.
If your SME shares our objective of ethical management based on the Ten Principles and also wants to contribute to the achievement of the Sustainable Development Goals, do not miss the opportunity to be part of this business revolution and lead the change towards a more sustainable future. Join the largest international business sustainability initiative promoted by the United Nations, and you will be actively contributing to the transformation towards a more sustainable and equitable world. It’s time to give one step forward to move forward in your actions.
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