Home
Why can no company – big or small – afford to ignore sustainability anymore?
Below are some key facts about sustainability and why it is becoming increasingly important for every company:
- Regulatory requirements are increasing
Due to EU regulations like the CSRD (DIRECTIVE (EU) 2022/2464), more and more companies – including indirect suppliers – are required to provide sustainability reports. - Banks and major customers are demanding sustainability
When granting loans, banks are increasingly assessing ESG criteria (Environmental, Social, Governance), which directly affects the financing options for SMEs. In addition, many large companies expect sustainable standards from their suppliers – those who don’t meet them risk being removed from the supply chain. - Subsidies, grants, and public tenders are often tied to sustainability
Government support programs (e.g. for digitization or energy efficiency) often require a sustainable corporate orientation. The same applies to public procurement. - Employees want meaningful jobs
Especially young professionals value sustainable corporate practices – a decisive factor in the "war for talent." - Sustainability improves brand perception and public image
Consumers prefer sustainable products and services – and this is increasingly relevant even in the B2B sector. Companies that act credibly and sustainably benefit from more loyal customers. - Through platforms, ratings, and public reporting, sustainability shortcomings quickly become visible – even for SMEs.
At the same time, societal pressure is rising. Customers, employees, and media demand active climate protection – refusal is publicly sanctioned. - Resource scarcity threatens business models
The shortage of raw materials forces companies to implement circular economy models and use resources efficiently. Rising energy costs are also a factor. - Sustainability also increases resilience, as sustainable companies often focus on diversification and local sourcing – an advantage in times of supply chain disruptions.
- Sustainability drives innovation, because transformation pushes SMEs to innovate – those who respond early gain competitive advantages.
Is sustainability important for micro-businesses as well?
Yes, absolutely! All the above reasons apply to the smallest businesses too.
In fact, for them, sustainability is not a luxury – it’s a necessity!
- Sustainability often means: less energy, less waste, fewer unnecessary trips. Especially with tight budgets, every euro counts – e.g. through LED lighting, energy-saving tools, or second-hand equipment.
- Sustainable small businesses often rely on local and diverse suppliers, reducing risks in times of crisis (e.g. supply bottlenecks).
- Micro-businesses typically have direct contact with customers. Those who act sustainably and credibly can emotionally stand out from the competition – especially among regional and loyal customer groups.
- Sustainable businesses are positively perceived in their communities – strengthening local ties and increasing word-of-mouth.
- Small businesses can position themselves as green specialists: organic hairdresser, sustainable IT consulting, zero-waste café, organic farm – offering real differentiation.
- There are numerous funding programs for energy efficiency, digitalization, and sustainable business models – many of them explicitly designed for small businesses or solo entrepreneurs.
- Sustainable business models are more robust in the face of environmental, economic, and social change – a crucial point for small enterprises without financial buffers.
And they even have some additional advantages:
- Small businesses are more agile than corporations. Sustainable ideas (e.g. switching to green electricity, local collaborations, reusable systems) can be implemented quickly and with minimal bureaucracy.
- In small companies, decisions are often made by the owner directly – sustainability can become a lived business philosophy without internal politics or corporate structures.
- Small businesses can use sustainable values as justification for slightly higher prices – customers are more willing to pay a bit extra if they understand the “why” and trust has been established.
But how can a company begin a more responsible business approach?
For companies, sustainable business practices mean more than just reducing CO₂ emissions – they require a holistic perspective.
This includes both the impact of business activities on the environment and society, as well as the risks that environmental and societal developments pose to the business itself.
The RKW Competence Center, for example, has developed a sustainability guide for SMEs that offers practical guidance.
It includes compact information, concrete tools, and actionable recommendations – specially tailored to companies that want more than just to pursue profit!
