A roadmap to sustainable success: A comprehensive checklist for businesses
In today's dynamic business landscape, sustainability has evolved from being a buzzword to a fundamental consideration for companies across all industries. With increasing demands from customers, investors, and regulatory bodies, businesses must take responsibility for their environmental and social impacts and navigate this complex terrain effectively. The International Federation of Accountants (IFAC) has published a Small Business Sustainability Checklist to facilitate this journey. This checklist provides a holistic framework for evaluating and enhancing sustainability initiatives, covering the consideration of environmental initiatives, social responsibility initiatives, and governance initiatives.
Environmental Initiatives
All businesses face certain environmental risks. These risks should be identified, evaluated, and incorporated into the entities’ policies and plans. The following considerations form part of the process:
Start by identifying and assessing environmental risks that could impact operations. It's crucial to understand the potential implications of these risks, such as how business activities affect air, water, and soil quality.
Develop an environmental policy that outlines your approach to managing identified sustainability risks. This policy should include measures to reduce pollution and minimise negative environmental impacts.
Align the environmental policy with your broader business strategy. Sustainability should be integral to your organisation's overarching goals and vision.
Set clear objectives and targets within your environmental policy. These targets will serve as benchmarks for measuring progress effectively.
Implement systems to gather relevant data and monitor progress towards your environmental objectives and targets.
Allocate adequate resources, including budgets and personnel, to support achieving your environmental goals.
Evaluate consumption patterns and implement strategies to reduce waste and consumption.
Stay informed about and adhere to local, regional, and national environmental regulations for your business.
Take advantage of government grants or subsidies that support sustainability initiatives to maximise available resources.
Social Responsibility Initiatives
Businesses should understand their social responsibility, including diversity, equity, inclusion, gender pay gaps, discrimination policies, recruitment processes, bias training, accessibility, stakeholder engagement, modern slavery, community contributions, data protection, payment terms, and customer feedback. Addressing these aspects ensures a socially responsible business environment.
Governance Initiatives
Governance practices are vital for sustainability and cover board diversity, internal controls, code of conduct, whistleblower policies, anti-corruption training, sustainability policies, procurement processes, data privacy, senior management remuneration tied to sustainability, collaboration with stakeholders, internal sustainability culture, risk management, IT system updates, succession planning, updated business strategy for sustainability, and integrated sustainability information.
Sustainability is no longer a choice but an imperative for businesses looking to thrive in the modern world. The Small Business Sustainability Checklist serves as a valuable starting point for businesses, accountants, and advisors to identify areas for improvement and develop a sustainability strategy that aligns with their goals and values. Embracing sustainability isn't just about compliance; it's a pathway to long-term success and positive societal impact.
CIBA, working with Draftworx, won an International Standards of Accounting and Reporting (ISAR) Award in 2021 SDG reporting. Read more about the ISAR award here: https://www.youtube.com/watch?v=Exbo6TClbfg
Watch this short video on how CIBA supports SDG reporting: https://www.youtube.com/watch?v=Exbo6TClbfg