Eeditorial
| by Paolo Spinelli
Eeditorial
EDITORIAL
| by Paolo Spinelli
It ’ s no longer just a marketing tool . Sustainability has become a linchpin of corporate business models . And it is also an opportunity , boosting both ratings and access to credit . The link between finance and sustainability has become a crucial consideration for small and medium-sized enterprises ( SMEs ). Sustainable practices are not only a strategic advantage when addressing future challenges , they also open up new market and funding opportunities . Sustainability is now an essential requirement for business success , and SMEs that understand this are thriving in the evolving economic landscape . In the current scenario , sustainability is more than just a marketing tool ; it must be a fully integrated financial instrument that demonstrates the ability to invest correctly and responsibly . SMEs are recognising that sustainability is not just about boosting their image , but rather that it is crucial for longterm growth and , in many cases , survival itself . The ESG rating , which is an indication of performance in environmental , social and governance terms , is becoming increasingly important . Sustainability is not just a matter of compliance ; it is , increasingly , a key indicator of business value over time . Adopting ESG practices not only reduces risk , it also provides a tangible competitive advantage : it attracts sustainability-oriented investors .
SUSTAINABILITY , A MUST FOR SMES
SMEs know that sustainability is crucial in today ’ s market . Consumers and investors are becoming more aware , and companies that ignore the issue of sustainability run the risk of losing competitiveness . The EU ’ s Corporate Sustainability Reporting Directive requires companies to account not only for their internal practices but also for their entire supply chain , and this forces them to reflect on their environmental and social footprint . The capital market rewards sustainable businesses . SMEs that embrace sustainability are able to keep their ESG risk to a minimum , attract sustainability-minded investors and improve their overall rating . This shift towards sustainable finance is a real opportunity for growth . Family businesses , too , after some initial concern about the costs of this transition , now recognise that sustainability is a profitable investment . Managing to see beyond the initial costs leads to long-term benefits , such as an improved reputation and more interest from customers and investors . The ESG approach is also transforming financial models . SMEs are exploring new funding opportunities through sustainable bond issuance and sustainability-linked bank loans , and by going public as sustainable businesses . Use of these financial tools demonstrates a real commitment to sustainability , and strengthens investor and stakeholder confidence . ESG reports are now essential for both investors and banks . Indeed , financial institutions , as part of their risk assessment and lending processes , need corporate clients to provide detailed ESG reports . These provide a complete overview of the company ’ s performance in terms of sustainability . Finally , sustainability also affects the capacity to attract and retain talent . Employees are increasingly attentive to the social and environmental impact of companies . Sustainable SMEs attract not only ethically motivated talent but also individuals who see sustainability as a sign of forward-thinking
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Italian technology plast / April 2024
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