The EU has launched an initiative designed to help SMEs become more sustainable.
Small companies across the bloc will be able to access support from expert advisors, and get help in accessing the finance they need to transform their business through the Sustainable Transition to the Agile and Green Enterprise (STAGE) project.
Led by the Institute of Entrepreneurship Development in Greece, 14 European organisations have come together for this project.
The launch of the initiative is timed to helps SMEs prepare for the EU’s Corporate Sustainability Reporting Directive (CSRD), which comes into effect in 2024. Although it targets companies with more than 250 staff and a turnover of more than €40m, their reporting will require emissions data from their entire supply chain – which includes SME suppliers.
SMEs will have to prove they have the systems in place to collect and communicate environmental data on their products and services in order to remain competitive, with large companies expected to favour those who align with their CSRD obligations.
However, analysis by Engineers Journal on the impact the sustainability legislation will have on SMEs notes a trend that the smaller the company, the less likely they are to audit or monitor carbon emissions. There are a range of factors contributing to this shortfall, and access to finance is one of them.
The report said further exacerbating the issue “is the trend towards sustainable finance, where investment is increasingly tied to environmental, social and governance (ESG) goals. Because SMEs are not obliged to report ESG data and often don’t have the resources or expertise to do so, they are at a disadvantage when it comes to attracting investment in this environment.”
The STAGE programme for successful applicants will comprise three phases. In the first, a self-assessment tool will help SMEs evaluate their performance across a range of social, innovation, governance, environment and economic factors. Advisors will work with SMEs to draw up a sustainability transition plan based on this evaluation.
Phase two is training, which will be available both online and on-site and will be hosted by STAGE partners organisations. Training programmes will be tailored to the business’s sustainability transition plan, though employees of eligible companies will be able to access as many modules as they like.
Having reached phase three, SMEs will be eligible for the STAGE financial grant programme and tailored financial advisory. They can apply for financial support of up to €50,000 to start implementing their sustainability transition plan.
AIA’s Chief Executive, Philip Turnbull, added AIA recognise the power of collective action for a greener future. I urge SMEs to explore the STAGE program and take a significant step toward a more sustainable tomorrow.
AIA recognise the power of collective action for a greener future. I urge SMEs to explore the STAGE program and take a significant step toward a more sustainable tomorrow.
Philip Turnbull, AIA Chief Executive
