Why Large Organisations Need SME's to Publish Environmental Data and Decarbonise
In the current global business landscape, the need for large organizations to collaborate with SMEs (Small and Medium Enterprises) to publish environmental data and decarbonize is more crucial than ever. Corporates, with their substantial operations, have a significant carbon footprint that needs to be reduced to mitigate climate change. However, a substantial portion of this carbon footprint often stems from the supply chain activities of these organizations. This is where SMEs come into play – as key partners in helping large organizations decarbonize effectively. By working closely with SMEs, corporates can address emissions that are embedded in their supply chains, leading to a more sustainable and environmentally friendly operation.
Below is an example of a corporates emissions; Apple Inc..Under 4% of of its emssion are "internal" while 81% is from the supply chain.
One of the key reasons why large organizations need SMEs to publish environmental data and decarbonize is the introduction of new legislation, such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Corporate Sustainability Due Diligence (EUCSDD). These regulations are set to impose strict penalties on enterprise organizations that fail to comply with environmental reporting and decarbonization standards. While SME suppliers may not have the same reporting requirements as larger corporations, it is essential for the latter to ensure that their supply chain partners are also committed to sustainability. Through due diligence and collaboration with SMEs, large organizations can demonstrate their efforts to reduce their carbon footprint and meet regulatory requirements.
In conclusion, the collaboration between large organizations and SMEs for environmental data publication and decarbonization is instrumental in driving sustainable practices and meeting regulatory standards. By recognizing the impact of supply chain activities on their carbon footprint, corporates can work with SME partners to implement environmentally friendly measures and reduce emissions effectively. Through these partnerships and adherence to new legislation, organizations can not only improve their environmental performance but also contribute to a greener and more sustainable future for all stakeholders involved.