In a shared commitment to a sustainable future, ESBG and EFAA for SMEs have issued a joint statement highlighting the essential role of small- and medium-sized enterprises (SMEs) in Europe’s green transition. Representing 99% of European businesses and employing over 85 million people, SMEs are the cornerstone of Europe’s economy and integral to achieving a sustainable and resilient society.
This collaboration underlines the powerful benefits of sustainability for SMEs: improved resilience, greater access to finance, and enhanced competitiveness. But achieving these benefits requires support, especially in navigating sustainability reporting. By aligning with Voluntary Sustainability Reporting Standards (VSME), non-listed SMEs can efficiently meet growing demands for sustainability information, allowing them to compete alongside larger companies while easing their reporting burden.
Together with ESBG, we’re committed to advocating for a balanced, risk-based approach that considers the unique characteristics of SMEs. ESBG member banks are proud to partner with SMEs on this journey, offering tailored financial solutions to foster sustainable growth. Our Professional Accountancy Organisations and our small- and medium- sized accountancy practitioners (SMPs) are committed to providing the advisory services SMEs need to adopt sustainable business practices and enhance their sustainability performance, as well as to preparing and providing assurance on SME sustainability reports.
Call for Action
We urge an immediate re-evaluation of current regulations that disadvantage SMEs and obstruct their access to sustainable finance. By adopting a more inclusive and equitable approach to sustainability reporting and financing, we can unlock the potential of SMEs as vital players in the transition to a sustainable economy, contributing to the EU’s broader environmental goals. Collaboration between banks and SMEs, when appropriate supported by their SMPs, is essential for achieving the green transition and fostering a resilient, sustainable future for all.
