There are thousands of initiatives available to SMEs who are committed to building ESG into their corporate strategy. Sometimes it’s hard to know where to start, so we have picked out a few as a starting point.

SME Climate Hub as an SME ESG initiative

If you want to take a step towards having a climate-friendly corporate strategy, then this is a great place to start. A non-profit global initiative developed by the We Mean Business Coalition, the Exponential Roadmap Initiative, and the United Nations (UN) Race to Zero campaign. Along with Normative and the Oxford University Net Zero team, the SME Climate Hub offers SMEs a whole host of free resources and supports. These resources help them get onto and then make progress on their path to Net Zero, whatever that path might be.

All they ask in return is that you commit to three things

  1. You will halve your carbon emissions by 2030
  2. You will be net zero by 2050; and
  3. You will publish your progress for all to see.

Committing to reducing your business’ emissions through the SME Climate Hub means you will be joining the thousands of businesses and governments. These entities are part of the UN’s Race to Zero campaign.

No cost – lots of help, you need to make a commitment to reducing your carbon footprint. But if you’re wanting to make a start on the E, this is a great place to do so.

Good Business Charter (GBC)

An independent not-for-profit organisation supported by the Confederation of British Industry (CBI) and the Trades Union Congress (TUC). The Good Business Foundation offers “recognition for responsible business behaviour”.

Businesses considering ESG initiatives for SMEs can apply for GBC accreditation if they meet 10 commitments to business behaviour over 10 elements. These elements are:

  1. Paying employees the real living wage
  2. Having a fair approach to zero/minimal hours contracts
  3. Establishing policies to support and encourage employee wellbeing
  4. Engaging with employees to give them representation
  5. Evidencing diversity and inclusion in your business
  6. Committing to an environmental policy
  7. Paying fair tax
  8. Publishing your commitment to customers
  9. Using ethical sourcing
  10. Paying suppliers promptly

In conjunction with the Federation of Small Businesses, SMEs (businesses with 50 employees or less) are offered a self-certifying route to GBC accreditation. This is based on the 10 elements above. You can then use the GBC logo to promote your accreditation. Membership is free for the first year and after that, the annual fee is £25 for SMEs.

A small cost – an all-round approach to promote good business practices, covering all aspects of E, S & G.

B1G1: Business for Good

The programme offers the choice of more than 400 projects which a business can choose to support. These projects range from Education and Health, to Environment, to Human Rights. This presents a great opportunity to engage your employees in your SME ESG efforts. You can ask for their input on what projects your business wants to support.

Your business commits to linking a specific business activity to the impact you want to have and what that level of impact is. It’s a broad-ranging programme that makes it very easy for businesses to make a contribution to ESG initiatives all over the world. Resources include help with displaying “impact counters” on your website, so your stakeholders can follow the impact your business is having.

A holistic programme offering lots of choice of how much you can and want to commit. Also, it specifies where you want your impact to be felt. It is a great employee engagement and stakeholder tool.

1% for the Planet

For a more environmental focus, 1% for the Planet is a global movement. It “bring(s) people together to increase smart environmental giving”. The network uses a business membership model.

Members commit to an amount equal to 1% of gross sales to Environmental Partners. They are encouraged to engage directly with them. Donations can be in the form of money, volunteering, in-kind donations, and other promotional support. There are thousands of partners to choose from, across 64 countries and who are developing solutions. They address specific environmental issues, and all donations are certified by 1% for credibility.

1% for the Planet has also partnered with the National Philanthropic Trust and Capshift to create the 1% for the Planet Impact Fund. Donations to the Fund are invested in climate-focused investments. The returns are used to make grants to leading environmental partners. Currently, around 10% of the value of the Fund is granted each year. Gifting from the UK isn’t tax-deductible at present, but this may change over time.

A simple giving programme enabling environmental solutions across the world. You can choose who to support and build a direct relationship, which may be very appealing to your stakeholders.

Ecologi

This initiative is all about offsetting and is available to individuals and businesses alike. Impact is achieved through carbon avoidance and reforestation.

There are a few SME ESG solutions to choose from, such as the Climate Positive Workforce, which each have different subscription levels. For example, the Start employee plan costs £5.35 a month per employee. This funds 5 new trees and avoids 4.5 tonnes of CO2, which is equivalent to around 1/2 the average employee’s footprint. Ecologi estimates that the average carbon footprint of a UK resident is about 9 tonnes of CO2e.

To tie your impact to sales or other business activities, you can link through activity on apps such as Shopify and Zapier. Alternatively, you can use their APIs to automate buying trees or carbon offsets directly into your own systems.

If a subscription doesn’t work for you, Ecologi offers an Impact Only account. Through this, you can buy climate impact and make a difference whenever you want to.

Focused on positive climate action through reforestation and carbon offsetting, this makes it easy to make a tangible difference in a way that is linked to your own (personal or business) activity.

Of course, this is only a small selection of the many, fabulous ESG initiatives for SMEs that are out there. Through these, you and your business can make a difference.

Thank you to Cathy Oh of Tanamera Limited for this article.