The Global Compact Network South Africa (GCNSA) has launched an SME Readiness Tool, powered by Bidvest Group. The tool assists businesses with measuring their Environmental, Social, and Governance (ESG) maturity level.
Implementing ESG into your business strategy can be beneficial even if you’re a small business owner. SMEs tend to make the mistake of assuming ESG is reserved for large corporations, but that couldn’t be further from the truth.
Some of the benefits of ESG for small businesses include exposure to business opportunities, streamlined supply chains, staff retention, and more. If you’d like to find out where your business’s ESG maturity stands, this article is for you.
How Does the SME Readiness Tool Work?
The Global Compact Network South Africa SME readiness tool asks binary questions based on eight ESG indicators that align with global and local frameworks. The eight ESG indicators covering environmental, social, and governance areas are as follows:
- Climate Action
- Energy Efficiency
- Water
- Waste
- Human Rights
- Living Wages
- Gender Equality
- Anti-Corruption
Benefits of the Readiness Tool for SMEs
As an SME, you might wonder how this readiness tool could be useful for your business. According to Global Compact Network South Africa, around 60% of corporate buyers consider sustainability performance a key factor in supplier selection. This means that by prioritising a commitment to sustainability performance, SMEs stand a better chance at securing contracts with larger corporate buyers and can maintain strong investor relations. However, this is more than just ticking a box. There are several other benefits, including:
1. Empowers SMEs to start their sustainability journey
This helps small businesses take the first step in a clear way. Many owners want to do better but feel lost. This gives them a simple start and builds their confidence.
2. Enables SMEs to assess their sustainability status quickly through a structured, easy-to-use tool
The tool helps owners check where they stand right now. It is simple to use. It gives quick answers that make sense without long reports or expert help.
3. Assists SMEs in understanding their sustainability gaps and in strategically planning their sustainability journey
The tool shows the areas that need work. It helps owners see what they miss and why it matters. It also guides them to set a clear plan that fits their goals.
4. Generates actionable sustainability insights that provide meaningful peer comparison in the market
Owners get insights they can act on right away. They can also see how they compare with other small businesses. This helps them understand their place in the market.
5. Enables SMEs to respond to requirements from large companies in value chains
Large businesses typically ask for proof of good practice. This tool helps SMEs give that proof with less effort. It keeps them ready to meet the needs of the chain.
6. Strengthens supply chain resilience by positioning SMEs as responsible and reliable partners
When small businesses show good practice, large corporations trust them more. This leads to stable links in the chain. It also lowers risk for all partners.
7. Boosts customer and investor confidence by effectively showcasing measurable sustainability commitments
People want to support SMEs that are honest and transparent in how they operate. Investors want clear proof of good work. This tool helps owners track their progress and share real results.
8. Enhances competitive differentiation by demonstrating tangible sustainability progress
Real progress helps a business stand out. With this tool, you won’t be making claims, but your business gets to stand out as you can show proof of your efforts to be ESG-ready
How to Access the ESG Readiness Tool?
To get started with the ESG readiness tool, follow these steps:
- Head to the SME Readiness landing page.
- On the landing page, click on the Start Your Journey button.
- Create an account by filling in your contact information and company details, then continue.
- Once you’ve filled in your company details, the readiness assessment will pop up on your screen. You need to set aside 30 to 45 minutes to complete the assessment.
Upon completion of your assessment, you’ll receive a comprehensive readiness report that you can download.
