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  • ESG Everyday

ESG disclosure for SMEs


ESG (Environmental, Social, and Governance) disclosures are becoming increasingly important for Small and Medium Enterprises (SMEs) to ensure transparency, build trust, and attract investment. While the specific sectors that should disclose their ESG information can vary depending on the company's specific operations and business model, there are several sectors that are generally considered high-risk and may benefit from disclosing ESG information:


Energy and Utilities: Companies in this sector should disclose information about their carbon footprint, energy efficiency, renewable energy usage, and water usage. ESG disclosures can help identify areas where companies can reduce their environmental impact and improve their sustainability practices.

Manufacturing: Companies in this sector should disclose information about their supply chain, labor practices, waste reduction, and energy efficiency. ESG disclosures can help identify areas where companies can reduce their environmental impact and improve their sustainability practices.


Agriculture and Food: Companies in this sector should disclose information about their farming practices, supply chain, and labor practices. ESG disclosures can help identify areas where companies can improve their sustainability practices, such as reducing greenhouse gas emissions, conserving water, and protecting biodiversity.


Financial Services: Companies in this sector should disclose information about their governance, risk management, and social impact. ESG disclosures can help identify areas where companies can improve their practices, such as promoting diversity and inclusion, improving customer satisfaction, and addressing climate risks.


Technology: Companies in this sector should disclose information about their data privacy practices, supply chain, and labor practices. ESG disclosures can help identify areas where companies can improve their sustainability practices, such as reducing greenhouse gas emissions, reducing waste, and promoting responsible use of technology.


It's important to note that this is not an exhaustive list, and SMEs in other sectors may also benefit from disclosing their ESG information. Ultimately, the decision to disclose ESG information should be based on the specific risks and opportunities associated with a company's operations and business model.

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