Learn how SMEs can get sustainability certification to boost competitiveness and meet standards in a sustainable supply chain.
In the last twenty years, sustainability has evolved from a corporate buzzword to a critical component of business strategy with environmental concerns, social responsibility, and ethical governance no longer being optional but integral to operations.
Large corporations are increasingly requiring their suppliers to adhere to stringent environmental and social standards in order to be compliant with strict regulations such as the Corporate Sustainability Reporting Directive (CSRD), making sustainable supply chain practices essential for all participants.
In this context, small and medium-sized enterprises (SMEs), which form the backbone of many economies—representing about 90% of businesses and more than 50% of employment worldwide—are now keen to demonstrate their commitment to sustainability to retain market competitiveness and align with stakeholders needs.
The value of sustainability certifications for SME
To meet increasingly stringent regulations and the rising demands of clients and stakeholders, small and medium-sized enterprises (SMEs) must elevate their sustainability efforts.
Achieving certifications in areas such as labor conditions and environmental impact management can significantly enhance an SME's reputation, build customer loyalty, and open access to new markets that prioritize ethical sourcing and production.
For instance, a 2022 study by the IBM Institute for Business Value found that 44% of consumers are willing to change their purchasing habits to buy from companies matching their values.
Additionally, certified SMEs can realize cost savings through improved efficiencies and waste reduction as well as retaining market share by meeting customers' demands and regulatory requirements, avoiding potential sanctions.
However, the certification path can be challenging due to limited financial resources, lack of expertise, and the complexity of certification processes often tailored for larger corporations.
A 2021 report by the World Economic Forum highlighted that many SMEs view the cost of sustainability initiatives as a significant barrier.
How to certify SMEs
The process of certifying an SME involves several key stages that work together to align the company with recognized sustainability and ethical standards.
It begins with an internal assessment, where the SME evaluates its current practices against the requirements of relevant certifications in order to identify areas needing improvement and set a roadmap for implementing necessary changes.
Once the assessment is complete, the SME enters the implementation phase, developing and enacting policies and procedures to meet the certification standards.
During this stage, employee training is essential to embed sustainable practices throughout the organization, ensuring that all staff understand and contribute to the company's sustainability goals.
To validate the changes occurring, the SME undergoes an external audit conducted by certified bodies relevant to each certification.
Successful completion of the audit results in obtaining the certifications, signifying compliance with industry-recognized sustainability and ethical criteria.
Finally, continuous improvement is crucial for maintaining these certifications; regular reviews and updates ensure that the SME stays aligned with evolving sustainability practices and standards, reinforcing its commitment to responsible business operations.
Certification Schemes
SMEs can achieve various certifications across different domains to showcase their commitment to sustainability and ethical practices.
I) Environmental Management Certifications
- ISO 14001: Provides a framework for improving environmental performance through efficient resource use and waste reduction. Achieving ISO 14001 demonstrates an SME's dedication to minimizing environmental impact.
- Carbon Trust Standard: Recognizes organizations that measure, manage, and reduce their carbon footprint. SMEs committed to mitigating climate change can showcase their efforts through this certification.
- Energy Star Certification: Identifies energy-efficient products and practices. SMEs that manufacture energy-efficient products or implement energy-saving measures can benefit from this recognition.
II) Social Accountability Certifications
- ISO 9001: Focuses on quality management systems, promoting efficient processes that support sustainability efforts. By optimizing quality, SMEs can reduce waste and improve customer satisfaction.
- ISO 45001: Centers on occupational health and safety management systems, enhancing employee safety and working conditions. This certification helps SMEs create a safer work environment, reducing risks and improving productivity.
- SA8000: Ensures fair labor practices and safe working conditions, fostering a positive workplace environment. This standard is essential for SMEs aiming to uphold workers' rights and ethical labor standards.
- Great Place to Work: Recognizes companies with a high-trust, high-performance workplace culture, based on employee feedback and assessment of the company’s practices.
III) Product-Specific and Industry-Specific Certifications
- Cradle to Cradle Certified™: Evaluates products for environmental and social performance across categories like material health and renewable energy use. SMEs producing sustainable products can benefit from this certification.
- REACH Compliance: Ensures the safe production and use of chemical substances, crucial for companies dealing with chemicals in the European Union. Compliance demonstrates adherence to high safety standards.
- Forest Stewardship Council (FSC) Certification: Ensures responsible forest management for those dealing with forest products. SMEs in the forestry sector can show their commitment to sustainability through FSC certification.
- OEKO-TEX® Standard 100: Certifies that textiles are free from harmful substances, which is essential for the textile industry. SMEs can assure customers of product safety and quality.
- Fairtrade Certification: Vital for products that meet specific social, environmental, and economic standards, benefiting producers and workers in developing countries. SMEs can support fair trade practices and appeal to ethically conscious consumers.
Conclusions
While the journey toward sustainability certification can be demanding for SMEs, the long-term benefits significantly outweigh the initial challenges.
Certification affirms an SME's commitment to responsible business practices and enhances its competitiveness in an increasingly sustainability-conscious market.
By proactively adopting sustainable practices and achieving certification, SMEs can contribute significantly to a greener economy, meet the expectations of larger corporate clients, and align with global efforts to address environmental and social issues.
