INTRODUCTION Evolution or revolution? Many paths to sustainability There are many ways to interpret the term sustainability, but whether it means environmental performance, corporate citizenship, longterm business perspectives or all three, it is a growing priority for businesses of all sizes. We spoke to many small and medium-sized enterprises (SMEs) to find out how smaller companies can implement sustainable business practices for the benefit of the environment, their communities, their customers and their bottom line. There can be no doubt that sustainability has become an important priority for many businesses across Europe and North America over the last decade as leading companies have recognized that successful sustainability performance translates to successful business performance. But sustainability means so much more than reducing greenhouse gas emissions or improving energy efficiency. It also means businesses becoming more involved in their local communities and setting long-term goals that go beyond the next quarter’s financial results. In 2010 the AICPA, CIMA and CICA, all of which are members of the Prince’s Accounting for Sustainability Project (A4S), surveyed over 2,000 organizational leaders and interviewed sustainability executives to determine the state of corporate sustainability practices and the level of finance function involvement in corporate sustainability initiatives. Over 1,300 of the responses were from SME companies (less than 1,000 employees). The importance of this wider, long-term perspective on sustainability is borne out by the case studies in the following pages compiled by CICA, CIMA and AICPA. They show SMEs taking very different approaches to the same core issues and highlight the findings of the 2010 survey, which charted the growing emphasis SMEs are placing on every aspect of sustainability. The survey showed that one-third of smaller companies have a defined sustainability strategy, and a further 23% intend to develop one in the next two years. Their reasons for doing so may vary, but the core message is that sustainability is good for business. In some industries it appeals to customers’ changing values, it may strengthen relationships with suppliers, it can have a huge impact on the positioning of a brand as a good corporate citizen that operates in harmony with local communities and the environment, and it can reduce the variable costs of running a business and, therefore, drive profitability. Discussions of these kinds of business benefit have often been framed in the context of large, multinational companies, but smaller businesses are also making great efforts
SMEs Set Their Sights on Sustainability Case Studies from the UK, US and Canada | iii