Time for SMEs to take steps towards sustainability

RAPID economic development over the past few decades has taken a substantial toll on our natural resources. Climate change, as described by the United Nations, has become the greatest threat to human security, and has evolved beyond just an environmental problem. Sustainability has grown to become an increasingly urgent focus for businesses, with many implementing a “triple bottom line” framework – which integrates social, environmental, and financial outcomes to evaluate sustainability.

There has been a surge in eco-conscious investors in the Asia Pacific region, with 70 per cent claiming sustainability is a significant factor in their investment strategy, compared to 57 per cent just a year ago. Sustainability also influences consumers’ purchasing decisions – 60 per cent of consumers globally rate it as an important purchase criterion.

Businesses can no longer get away with being oblivious to the impact they have on the environment and communities they operate in, nor should they delay implementing sustainable practices to mitigate them. This extends not only to large enterprises, but to small and medium-sized enterprises (SMEs) who make up the overwhelming majority of businesses worldwide.