Environmental Management Systems And SME Greening
In the typical small and medium enterprise (SME) greening process, businesses undergo small changes instead of systematic ones, implementing green practices where they seem fit. On the contrary, larger businesses typically take on large-scale systematic changes when they approach greening, simply because the costs of human capital and resources are more affordable to them. Greening is not a cheap process, and larger businesses are typically the only ones equipped to take on the complete process. So how can SMEs green? When a larger business greens, it typically uses an Environmental Management System (EMS). EMS offer programs to businesses, and while they are expensive and require paperwork, new tailored systems can be implemented on SMEs, changing the future of green businesses.
Typically, simplified EMS are promoted by larger businesses, and they are sometimes offered with government funding. EMS companies like the French 1.2.3. Environnement Set specific prices, typically affordable for small businesses. The cost of EMS is for training, verification audits, and ongoing assistance at each level of assistance. Once rates are established, the SME undergoes a process with multiple steps, ultimately culminating in a green business. As far as the levels offered, many of them chip away at old systems, while integrating sustainable alternatives..
Simplified EMS can be the catalyst in SME greening. Unlike large business systems, personalized simple EMS require less paperwork and human resources to be successful. In many instances, tailored EMS are made by compressing typical systems into smaller steps, and then implementing them upon small businesses. Before this, SMEs would often try and make environmental changes on their own, but only succeed at changing small things instead of changing the systems that prevented them from taking larger sustainable actions..
So what are the benefits of EMS? Besides the obvious reasons of slowing climate change and improving sustainability, such systems are typically easy to use. Since both simplified and regular EMS are adaptable, there is no reason for a business not to pursue greening under the system.
In the coming years, it is necessary to encourage SMEs to green through EMS, making the job easier on them and also more efficient for the environment. Unfortunately, it is primarily large businesses that engage in environment management practices. In Canada, only 12%-28% of SMEs are engaged in EMS practices, compared to 70%-78% of large companies (OECD, 2013[6]). In the end, it is the simplified system that will get the job done.
Improving the availability of EMS is another essential step in the process of greening SMEs. Data shows that only 0.4% of EU SMEs have formally certified EMS (OECD, 2018[5]). For this reason, a new uptake in EMS prevalence has occurred.
Right now it is more than essential that SMEs undergo green processes. According to Earth Maven, 70% of small businesses plan to go green in the next two years. That leaves a whopping 30% of SMEs who do not have motivation to pursue sustainability. Luckily, the benefits of greening are beginning to outweigh the risks. More than ever perks such as increased green consumerism (due to sustainability marketing), new products and ideas and price inflation from green products are making small business owners eager to become sustainable. The importance now is to keep their interest and use EMS practices to appeal to new audiences.
In an ideal future, we will see thousands of businesses who have gone completely green, or who are in the process of it. It seems like every day we are getting closer to our climate goals, and it is just up to SMEs to follow through. With the help of simplified EMS, it can be done.
Sources:
SMEs: Key Drivers of Green and Inclusive Growth
Shashwat Koirala Environment Directorate, OECD
