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ISSB: Are you ready for these new ESG standards?

by Sam Baldwin

27 February 2024

The ISSB disclosure framework outlines new ESG standards which also apply to SMEs within the supply chain. At Ecovis, we're here to guide your business through building and managing a robust sustainability strategy. Let's explore what the ISSB sustainability disclosures could mean for your business and how you can turn this challenge into a rewarding opportunity.

The ISSB disclosure framework outlines new ESG standards which also apply to SMEs within the supply chain. At Ecovis, we’re here to guide your business through building and managing a robust sustainability strategy. Let’s explore what the ISSB sustainability disclosures could mean for your business and how you can turn this challenge into a rewarding opportunity.

 

What the ISSB sustainability disclosure framework could mean for your business…

In November 2021, the International Sustainability Standards Board (ISSB) was established to create a comprehensive process for providing sustainability (ESG) disclosures.

Many SMEs assumed that these ISSB standards would only apply to the largest multinational corporations.

This is not true.

Although only larger corporations will fall within the scope of the ISSB requirements, they will also have to make disclosures about the sustainability risks posed by the companies in their supply chain.

This means if your business is part of the supply chain for one of these larger corporations, you should be prepared for these new disclosure standards.

 

How can Ecovis help?

At Ecovis, we specialise in helping businesses develop an ESG strategy, supporting you as you comply with these ISSB sustainability standards and achieve long-term success. To learn more, get in touch with our team.

 

What do ISSB sustainability standards mean for your business?

ISSB reporting is likely to become mandatory by the end of 2024. This means that many SMEs will soon be faced with a choice:

They can carry on business as usual and run the risk of falling foul of the new standards.

OR

They can get ahead of the crowd and reap the rewards of incorporating sustainability planning into their business strategy.

 

The Risk and Reward of ESG Compliance

The Risk

As we venture deeper into 2024, non-compliance isn’t just about missing out on opportunities – it’s about survival. In order to make the external risk disclosures required by the ISSB, large corporate buyers will start to request detailed information from their vendors. In many cases, this means the onus will fall on SMEs.

Moreover, if you cannot provide this information, your business becomes the weak link in the chain, putting your relationship with these larger corporations at unnecessary risk.

 

The Reward

Incorporating a sustainability strategy is not just about disclosure – it can also enhance your business resilience in the long term, by making it easier to:

  • Attract ESG-conscious investors and customers
  • Hire and retain top talent, especially amongst the younger generations
  • Mitigate business risk by helping you navigate shifting regulations and a changing business environment.

To learn more about how we can help you comply with ISSB standards and develop an effective ESG strategy, take a look at our ESG services.

 

How we can help

At Ecovis, we empower your business by providing the tools to develop and oversee a strong sustainability strategy.

 

To start on your journey to sustainable success, let’s talk today!

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