Sustainable Business Management Shared Interest Group

Do small business require ESG disclosure ? if yes how they engage a consultant to help them prepare a report 

Most private small businesses here in the United States are not required to report any type of ESG disclosures.  It can be beneficial for some to do so to gain competitive advantage if they operate within a supply chain and have customers who are required to report. Proactive small businesses also understand that it may be necessary to begin implementing ESG reporting to engage in global trade and some are taking steps to prepare for this. The IMA Small Business Committee which will soon transition to a Shared Interest Group (SIG) has published articles in Strategic Finance Magazine that discuss the relevance for small businesses in more detail. If interested, I can provide a list of these articles that offer a small business perspective on this topic.

Do small business require ESG disclosure ? if yes how they engage a consultant to help them prepare a report 

Hi Yvonne, Thank you for your crisp and to the point response. Yes I am going through articles published in SFM but would also be helpful if you have a list available which you can share so that I can go through all of them easily, further adding to our discussion can we as a CMA provide consulting advise to small business on disclosure will small business be ready to invest in ESG reporting and taking steps to make there business sustainable ?? If yes would should be the approach so that a win win situation can be created for us as a  consultant and for them being a proactive sustainable business. 

Further once scope two norms are applicable small business will need to come up and take necessary steps for ESG can we wait till time or we can take small steps from now. ??

Most private small businesses here in the United States are not required to report any type of ESG disclosures.  It can be beneficial for some to do so to gain competitive advantage if they operate within a supply chain and have customers who are required to report. Proactive small businesses also understand that it may be necessary to begin implementing ESG reporting to engage in global trade and some are taking steps to prepare for this. The IMA Small Business Committee which will soon transition to a Shared Interest Group (SIG) has published articles in Strategic Finance Magazine that discuss the relevance for small businesses in more detail. If interested, I can provide a list of these articles that offer a small business perspective on this topic.

Do small business require ESG disclosure ? if yes how they engage a consultant to help them prepare a report 

Hi Yvonne, Thank you for your crisp and to the point response. Yes I am going through articles published in SFM but would also be helpful if you have a list available which you can share so that I can go through all of them easily, further adding to our discussion can we as a CMA provide consulting advise to small business on disclosure will small business be ready to invest in ESG reporting and taking steps to make there business sustainable ?? If yes would should be the approach so that a win win situation can be created for us as a  consultant and for them being a proactive sustainable business. 

Further once scope two norms are applicable small business will need to come up and take necessary steps for ESG can we wait till time or we can take small steps from now. ??

Most private small businesses here in the United States are not required to report any type of ESG disclosures.  It can be beneficial for some to do so to gain competitive advantage if they operate within a supply chain and have customers who are required to report. Proactive small businesses also understand that it may be necessary to begin implementing ESG reporting to engage in global trade and some are taking steps to prepare for this. The IMA Small Business Committee which will soon transition to a Shared Interest Group (SIG) has published articles in Strategic Finance Magazine that discuss the relevance for small businesses in more detail. If interested, I can provide a list of these articles that offer a small business perspective on this topic.

Do small business require ESG disclosure ? if yes how they engage a consultant to help them prepare a report 

Thank you for being generous enough for putting all together in a list, agree that it will be difficult for small businesses but 

I was thinking about this that big companies has all the resources and expertise to develop and report on sustainable business practices can we create a cost effective model for small and medium business ?? 

Hi Yvonne, Thank you for your crisp and to the point response. Yes I am going through articles published in SFM but would also be helpful if you have a list available which you can share so that I can go through all of them easily, further adding to our discussion can we as a CMA provide consulting advise to small business on disclosure will small business be ready to invest in ESG reporting and taking steps to make there business sustainable ?? If yes would should be the approach so that a win win situation can be created for us as a  consultant and for them being a proactive sustainable business. 

Further once scope two norms are applicable small business will need to come up and take necessary steps for ESG can we wait till time or we can take small steps from now. ??

Most private small businesses here in the United States are not required to report any type of ESG disclosures.  It can be beneficial for some to do so to gain competitive advantage if they operate within a supply chain and have customers who are required to report. Proactive small businesses also understand that it may be necessary to begin implementing ESG reporting to engage in global trade and some are taking steps to prepare for this. The IMA Small Business Committee which will soon transition to a Shared Interest Group (SIG) has published articles in Strategic Finance Magazine that discuss the relevance for small businesses in more detail. If interested, I can provide a list of these articles that offer a small business perspective on this topic.

Do small business require ESG disclosure ? if yes how they engage a consultant to help them prepare a report 

Do small business require ESG disclosure ? if yes how they engage a consultant to help them prepare a report 

Kanishk - There are many threads in your deceptively simple question.  

"Disclosure" is often used in the context of SEC filings here in the US, and globally for content provided to regulators of capital markets.  Some disclosures are required, regardless of size of [publicly-traded] companies, with the Dodd-Frank Conflict Minerals rule being one example for a company with tin, tantalum, tungsten or gold in the supply chain.  Otherwise, the disclosures follow criteria for disclosures of material risk.  This is where ISSB comes in. 

"Require" - by whom and for what?  Other stakeholders look for Sustainability disclosures (including those reports) via channels OTHER THAN the capital markets.  Companies contracting with the U.S government must indicate if they publish a GHG emissions report available to the public.  If they do, they must provide a link.  If they do not, they can lose points for contracting.  Or not get the contract.  

"Capital markets" includes parties other than public financing.  Private equity is a major player.  Private equity investors have their own criteria for Sustainability including risk tolerance.  They only know about Sustainability risk via reporting, either public or B2B.  

Analysts (Bloomberg, Ecovadis, CDP) review many companies - including smaller ones.  Many assign grades to their view of company reporting.  

And these are just for starters.  

As for engaging a consultant, this can be difficult.  Many smaller companies prefer to do little, and defer as many efforts as possible.  To be fair, financial constraints are a common (and valid) reason.  I live near Hollywood.  If you want to be an actor, all you have to do is say "I'm an actor."  Sadly, the same is true for sustainability consultants.  Small businesses can still be selective in seeking external resources.  What competencies do they have, in what areas (climate, occupational safety, human rights, operations, supply chain, etc.)?  What do they know about business?   Can they provide references (hint: check them!)?  

And lastly, the initial post ends with ".. prepare a report."  You can't prepare a report on things you haven't done.  The first step is to develop and implement programs for relevant, applicable Sustainability topics.  Consider risk as you would for anything else.  Once you land on topics, design and implement controls as you would for operations and finance.  Then - and only then - should you consider publishing a report.  In the meantime, pay attention to what peer companies (larger competitors) and customers are doing, and the questionnaires arriving in your inbox.  These can help you get started.  

Anyone interested in this space should be prepared to invest considerable time (and yes, some money) to be credible.  Read GRI standards, download and read GHG Protocol (corporate standards, scope 2 and scope 3 guidance), ISSB S1 and ISSB S2.  Get the CDP questionnaire; if you can't answer all the questions, at least be able to understand them.  Get on mailing lists for a couple accounting firms and a couple law firms.  Read their thought leadership, attend their webinars.  

Happy reading.  

Do small business require ESG disclosure ? if yes how they engage a consultant to help them prepare a report