Lack of measurement of environmental and energy performance among small and medium-sized businesses (SMEs) hinders their ability to contribute to the energy transition and combat climate change.
96% of SME managers said they do not measure 1-3 carbon emissions and 95% do not have information on the level of renewable energy consumption.
Less than a third of SMEs have specific environmental or sustainability skills in a board or company management position.
YPO will train its members in environmental impact measurement and reporting
KIGALI, Rwanda, January 31, 2024 /CNW/ — Most small and medium business (SMB) leaders say their companies don’t measure their carbon emissions. This could seriously hamper their ability to contribute to the fight against climate change, according to a new study YPOSponsored by EY.
A report by YPO, the global leadership community of chief executives, shows that only 4% of surveyed members were able to report their company’s direct and indirect emissions (scope 1-3). Only 5% of executives surveyed measure their company’s use of renewable energy, so they are unable to report progress on the energy transition.
As environmental regulatory requirements intensify, research in YPO’s first Global Impact Report also highlights a potential lack of resources and understanding among SMEs on how to report on these issues. Less than a third (28%) of business leaders report having a social and environmental committee on their board of directors, and only 27% have a full-time sustainability leadership position.
YPO Global Chairman, Raymond Wattsaid:
“Our members underpin many of the world’s economies and want to play their part in tackling the environmental emergency, but currently most simply lack the knowledge and support to do so.”
“This first report provides an important baseline for YPO member businesses to begin benchmarking their environmental impact and making a positive difference. We are committed to supporting them to effectively measure energy use and carbon emissions, including technological data exploration and reporting solutions.”
“It will only be a matter of time before regulatory and supply chain requirements make environmental reporting both commercially and climate imperative, along with concerted company action to help prevent climate change.”
“Although it currently focuses on larger organizations, regulatory pressure to disclose environmental information is intensifying. This year, thousands of multinational companies Europe They must start reporting on their climate impact in accordance with the Corporate Sustainability Accountability Directive (CSRD). In United StatesThe Securities and Exchange Commission is expected to adopt climate disclosure rules.”
Orlan BostonYPO member and Senior Consultant and Global Client Services Partner at EY said:
“Along with more regulatory requirements, there is increasing pressure from customers on companies to make progress on and provide transparency on their environmental, social and governance performance.”
“Small and medium-sized business leaders need to assess the opportunities and risks for their individual businesses and stakeholders, which will enable them to implement a targeted improvement strategy.”
YPO is a global leadership community of more than 35,000 chief executives in 150 countries, bound by a shared belief that the world needs better leaders and that business can be a driving force for good. Each of our members has achieved significant leadership success at a young age. They lead businesses and organizations that employ more than 22 million people and produce products worldwide 9 trillion dollars in combined income. YPO members come together to learn and share ideas to make a difference in the lives, businesses and communities they impact. visit ypo.org for more.
The YPO 2023 Global Impact Survey was conducted by YPO via an online survey with support from EY, a strategic learning consultancy and survey sponsor; Evidence, data and technology partner; and Labrador, consulting, writing and design partner. The purpose of the survey was to learn the different perspectives of business leaders on social, governance and environmental impact. The data collection approach uses Proof’s data intelligence platform, allowing members to enter, store and update their data during the data collection period. The survey covered the reporting period from January 1 June 30, 2023 with an open data collection period from July December 2023With responses from over 700 YPO members from 82 countries.
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