The article emphasizes the importance of both compliance and competitive risk assessments in relation to sustainability practices. SMEs need to recognize the potential benefits of sustainability practices for their financial performance, which will enable them to respond to social and environmental risks and capitalize on opportunities. By doing so, SMEs can enhance their financial performance while contributing to sustainable development
- Sustainability involves active participation from citizens and businesses alike to use available resources effectively, and businesses of all sizes are responsible for acting in a manner that promotes effective resource utilization.
- The finance function must evolve to measure and report on sustainability performance and environmental and societal impacts.
- Finance officers can help link SMEs’ sustainability performance to traditional business metrics, thus enhancing the usefulness of communication and reporting.
- Scepticism among finance professionals regarding the economic value of sustainability efforts and reporting can certainly be a challenge that hinders involvement.