Shaping the Future of SME Sustainability Disclosure: A Holistic Approach

Year published
2024
Theme
Disclosure
Author
UNCTAD
Category
Guidance

To achieve the 2030 Agenda for Sustainable Development, governments worldwide have intensified their support for integrating sustainability into business operations and capital markets. While the focus has predominantly been on large corporations and financial institutions, international standards and policy measures related to sustainability disclosure have also significantly altered the operational environment of small and medium-sized enterprises (SMEs), due to their ever-increasing spillover effects worldwide. Compared to large enterprises, the sustainability journey of SMEs requires simplified yet clearly defined and robust policy frameworks and standards. Additionally, the creation of an enabling ecosystem to engage all stakeholders in support of SME sustainability integration, along with incentives to make sustainability disclosure affordable and feasible for SMEs, will be indispensable.