These are lofty aspirations, which at first appear as though they might be best tackled by national governments and big businesses.
Many small-to-medium-sized enterprises (SMEs), despite their ambitions, wonder how they can contribute, given their limited resources and narrow footprint.
However, collectively, SMEs are not insignificant. In fact, worldwide, they comprise 90% of businesses and create 50% of employment, according to the World Bank. Further, in emerging economies, they contribute up to 40% of GDP.
Without the commitment of SMEs, it is difficult to see how the UNSDGs will be achieved.
Ataur Belal, Professor of Accounting and Sustainability, University of Birmingham, together with Jonathan Jones, CEO, Green Ibex, explore the important role that SMEs can play in realising the UNSDGs.
What challenges do the UNSDGSs present for SMEs?
For Jones, the first and biggest challenge is mindset.
“SMEs often perceive their impact and influence to be at a local and regional level,” he says.
“They see the UN Goals as being too big in breadth and scope for them, and more relevant for larger, global institutions.”
Another problem is overcoming financial barriers.
“Making significant changes requires investment, and many SMEs lack the financial freedom to take such actions,” he says.
Compounding these challenges is the fact that the UNSDGs were initially designed to be implemented at national level, says Professor Belal.
This means that, even if SMEs were to pursue them, measuring their impact is difficult.
“To know how the world is performing against these very ambitious goals, we need reliable accounting.
“But there is no guidance in the UN framework for implementing them at organisational level.
“This raises questions. How do we translate the goals for organisations? How do we make sure [organisations] are really making change, rather than just paying lip service, unless we have reporting or accounting against each indicator?”
How do the UNSDGs present opportunities for SMEs?
The challenge of implementing the UNSDGs at the organisational level presents an opportunity for accountants to play an important role – and there is help available in the form of translation tools, developed by various individuals and organisations around the world.
These include the SDG Compass, the GRI Standards and the SDG Disclosure Recommendations.
“If they can show international buyers that they’re implementing the UNSDGs, this can give them reputational kudos.”
“[Using one of these] might require an internal capacity building exercise, but it’s important if a company wants to implement the [UNSDGs] authentically and seriously,” says Professor Belal.
“[Also], for accountants, the frameworks are similar to the charters they already use.”
Besides, the investment may well pay off by boosting sales.
“Many SMEs operate within a supply chain, not only in their own nations, but also in other countries,” says Professor Belal.
“If they can show international buyers that they’re implementing the UNSDGs, this can give them reputational kudos.”
In addition, once SMEs feel that they can make a difference, they are more likely to pursue further change, says Jones.
“Opportunities include investing in clean, sustainable, reliable and modern sources of energy; ensuring sustainable, responsible consumption of resources, both within their own businesses and throughout their supply chains; and improving their infrastructure and technology to make their businesses more sustainable and carbon-neutral.
“If they have the resources, SMEs [and their accountants and finance teams] are well positioned to make these changes because they can often make decisions on investment more quickly and easily than larger institutions.”
Examples of how SMEs can work towards the UNSDGs
Given that the UNSDGs are a global goal, SMEs need not feel pressure to change the world on their own. Focusing on small steps can make a big difference.
For example, in pursuing Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all, an SME could “ensure their buildings are powered by renewable energy by, for example, installing heat pumps or solar panels”, says Jones.
“[They could also] offer charging points for employees with electric vehicles.”
When it comes to Goal 12: Ensure sustainable consumption and production patterns, an SME could introduce a carbon reduction plan and embed sustainable practices across part, or all, of the business.
And, for Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation, it’s important to “invest in the latest technology in all areas of the business, replacing older, inefficient tech”, says Jones.
Whichever steps an SME decides to take, accountants and finance teams are vital.
“They can research government grants and other sources of funding and support, [as well as] identify savings that can be made in other areas of the business [to] allow investment in sustainability.”
Read next: How to get started with sustainability and emissions reporting
