Fostering sustainability reporting for business growth
Small and Medium-sized Enterprises (SMEs) play a pivotal role in the global economy, contributing significantly to job creation and serving as essential components of large companies' supply chains.
Advertisement
According to the International Labour Organisation (ILO), SMEs accounted for more than two-thirds of employment opportunities worldwide, underscoring their critical role in shaping a sustainable future.
SMEs in Ghana are major contributors to job creation.
They absorb a substantial portion of the workforce, providing employment opportunities across diverse skill levels and sectors.
Statistics from the Ghana Statistical Service (GSS) shows that SMEs account for a significant percentage of total employment in the country.
They often form part of the supply chains for larger corporations.
SMEs role as suppliers or service providers contributes to the overall efficiency and competitiveness of these larger entities, supporting their growth and success.
In recent years, the spotlight on supply chain sustainability has increasingly emphasised the need for SMEs involved in global value chains to elevate their sustainability practices.
This entails enhancing their sustainability management, performance, and transparency to sustain business relationships, access markets and funding, optimise operational efficiencies and ultimately, bolster their competitive edge.
Challenges
Many SMEs face challenges due to lack of expertise and capacity to provide vital information on their sustainability performance while concurrently enhancing productivity.
By integrating sustainability metrics into the fabric of their operations, Ghanaian SMEs cannot only measure their sustainability performance, but also enhance productivity and competitiveness.
This concept envisions a holistic approach that aligns business goals with environmental and social responsibility, ensuring a sustainable and a resilient future for SMEs in Ghana.
The integration of sustainability metrics also promote resilience and competitiveness.
Properly implemented, the concept enables a competitive advantage, differentiating the SMEs in the market by showcasing their commitment to sustainability.
It also attracts environmentally conscious consumers and investors.
It saves costs by identifying operational inefficiencies and reducing resource consumption.
It also mitigates risks associated with resource scarcity and regulatory compliance.
These benefits also build a positive brand image by demonstrating social responsibility and environmental stewardship as a business, strengthening relationships with customers, suppliers, and the local communities.
It offers resilience to market changes, enabling SMEs to anticipate and adapt to market trends, regulatory changes, and consumer preferences.
That results in the development of a flexible and a responsive business model that can withstand external shocks.
Session
A recently organised transformative capacity-building session on sustainability reporting was an important attempt to address this critical need for knowledge and capacity building.
SMEs should pay attention to these initiatives, such as the Global Reporting Initiative (GRI), which, in collaboration with SCORE Training
Solutions Ghana (STSG) is looking to commence these transformative capacity building sessions on sustainability reporting for SMEs in the country.
In conclusion, fostering sustainability reporting using the GRI standards among SMEs is not just a matter of compliance or obligation; it's a strategic imperative that fuels growth, enhances competitiveness, and ensures a more sustainable future.
Sustainability practices is an investment in the economic, social, and environmental prosperity of nations and the world at large.
(The author is an Environmental Scientist and a GRI Certified Sustainability Professional)
