Especially if you have business relationships with larger companies or you belong to the category of large companies yourself, now is the time to prepare for sustainable business and introduce a sustainability management system (“SMS”) step by step, but systematically. Why is this so?
- A demonstrably sustainable way of doing business is (still) a unique selling point for family businesses in many sectors. In two to three years, everyone will ultimately have to deal with this due to legal obligations.
- If you, as an entrepreneur, already have the goal of causing as little damage as possible to the environment and to people through your business activities, you can achieve this systematically through an SMS.
- In the foreseeable future, you will be confronted with new sustainability requirements from customers, other business partners, such as banks and insurance companies, and from society. With a step-by-step introduction of a systematic SMS, you are well prepared and can score points with these stakeholders.
- With an SMS, you ensure that you gradually integrate sustainability into existing structures and processes.
- If you start introducing an SMS now, you will be able to comply with the new legal requirements such as the EU Taxonomy Regulation, the EU CSRD with the reporting obligation for every larger company as of 2025 or the supply chain compliance act in Germany without pressure.
- With an SMS you create synergies with necessary certificates (e.g. ISO-14001, -50001, -45001, IFS, QS), because the effort is not additional, but the processes of the other standards are used for this.
- Many (younger) professionals are increasingly choosing their employer according to sustainability criteria. If you have an SMS, you are more attractive for your existing and for new experts!
- If you start introducing an SMS now, it will be easier to get people excited about the opportunities of a more sustainable way of doing business. Better now, than when there will be immediate pressure to act due to legislation or customer demands.
- When you establish an SMS, you create a credible basis for internal and external communication. For example, you avoid accusations of greenwashing if you systematically substantiate statements. The essence of the above laws is that you have disclosure obligations, towards your business partners and towards the public. Prepare for this now.
You can find an in-depth summary of the background to your upcoming duties on sustainable management here. Feel free to contact me if you would like a non-binding exchange on this.