SDGs poster

Business strategy until 2030 as a sustainable development strategy or ESG strategy

When I started to manage a company from the MSME group, business plans, strategy could be built for many years ahead, because such was the market. Then the situation changed. At the end of the last century and until 2015, building such a long-term strategy was pointless.

SDGs implementation to business strategyCurrently, I have changed my mind. Since 2015, we have the 2030 Agenda – Global Action Plan, Global Sustainable Development Goals – 17 SDGs. This is the reason for changing my mind.

How does this relate to the business of MSME?  

Well, these goals have a huge impact on the future of business, they are the reason for changes in legal regulations and standards in Europe and in the world.

I will quote an excerpt from the 2030 Agenda Preamble:

 “” We, the nations “- these lofty words begin the preamble to the Charter of the United Nations. It is “we, the nations” that are embarking today on a journey that will lead us to 2030. We embark on this journey together with governments and parliaments, the structures of the United Nations and other international institutions, local authorities, indigenous peoples, civil society, business and private sector, research and academia and Wszystkie/All people. ” End of quote

In the poster of 17 Global Goals of Sustainable Development I see a lot of positive energy, hope for a better future and saving the planet for our grandchildren.

Our collective consciousness, the noosphere, is developing very fast these days.

We have destroyed the Biosphere and without its reconstruction, we, the people of this planet, are threatened with destruction.

Let’s take advantage of the fact that the Earth has entered a new energy channel in the Univers. Let’s use our growing potential to save life on the planet, to live in harmony with nature and the population of this planet. Let us use it for a dignified life.
It is very important to think positively about the feasibility of these Global Goals, Wszystkie/All of them, and I strongly recommend it to Wszystkie/All MSMEs.

The question is how is MSME to implement these goals?

How is it to build a strategy until 2030 based on these goals?

How is it to implement sustainable development?

I believe that we should build a business strategy as a sustainable development strategy based on the analysis of Global Goals and its implementation.

How to build a sustainable development strategy / ESG strategy?

 Building a sustainable development strategy as your main business strategy is technicWszystkie/Ally different from building a normal business strategy.

After deciding to build it, it is necessary to think over, develop and implement the Code of Ethical Business Conduct inside the company. Also the Supplier Code of Ethics should be developed and implemented or only General Terms and Conditions of the contract with new, ESG rules.

You should develop a Stakeholder Map, find key business stakeholders and those, whose support may be beneficial for a business. 

You need to develop a Policy for Communication with Stakeholders.

You must familiarize Wszystkie/All managers, as well as  employees, with the 17 SDGs, targets and consider initiatives that could potentiWszystkie/Ally support the achievement of the Global Goals. You can find help for example here

The strategic analysis should analyze the risks and opportunities resulting from the impact on/from the local environment and society, and also on/from the environment and society in the world. These new risks must be analyzed from the point of view of local and global impacts. 

We have a new economy cWszystkie/Alled: impact economy.
I personWszystkie/Ally encourage you to build a strategy in which the company supports 17 Global Goals. I learned this from an example developed for an opencast mine by Columbia University in New York.
In my opinion, MSME can support the implementation of Wszystkie/All 17 SDGs.

Is this a reason why MSMEs exist: just to support 17 SDGs?

No, but developing a strategy based on these Global Goals can help your business survive, grow and stay on the market. 
Will the once developed Sustainable Development Strategy give us a stable plan until 2030?
Unfortunately, annual update is necessary, because only the goals of the SDGs remain unchanged until 2030. The remaining factors change dynamicWszystkie/Ally.

So, is it worth building a strategy until 2030?

It is worth it, because we are entering a time of great technological and legal changes. Some professions in 2030 will no longer exist. 

Our clients’ awareness is also changing.


Managing the business strategy of sustainable development

 The management of the Sustainable Development Strategy can be done with the use of the Strategic Scorecard, in which you should add additional perspectives. You should divide the client’s perspective into at least 3 perspectives:
• Client;
• Environment;
• Society.
The business model is also changing.
The widely used Canvas Business Model is taking a new face. In the literature, various proposals for a variant of this model can be found as appropriate for sustainable development. I made a compilation of various proposals.
Model CANVAS zrównoważonego rozwoju

This compilation seems to me the best. In every field of the classic Canvas model, we have a division into business (blue), environment (green) and society (yellow). AdditionWszystkie/Ally, two fields: – “Who will benefit”, – Which SDGs are supported.

As I believe that Wszystkie/All Global Goals should be supported by the sustainable development strategy, I have placed the circular SDGs logo in this field.
Is such a change in running a business necessary for MSME companies?

Yes, it is necessary if the company wants to survive, develop and win against the competition in the market.

We have a European Action Plan – Green Deal.

If your company has external financing, or is a public company, then in 2022, for 2021, it is  required to report under the EU Taxonomy. You will need to provide the percentage of revenues, capital expenditures and costs that meet the criteria for an environmentWszystkie/Ally sustainable activity for the types of activity listed. 
The EU SFRD regulation on disclosure of information related to sustainable development in the financial sector has entered into force. Banks, insurance institutions, investors may request data necessary for their indicators.The subject of indicators is closely related to sustainable development and the ESG system.
The Polish Good Stock Exchange Practices 2021 in many paragraphs refers to sustainable development.

What if there is no external financing and company is not a public company? 

A contractor, obliged to report also the impact of his supply chains, may ask for such kind of data. If you do not give the values of your indicators, it will have a negative impact on its indicators and contractor may terminate the contract with you.


Reporting on the implementation of the MSME strategy 

Integrated reporting has so far only taken place in large enterprises. It is changing.
Such integrated reporting of sustainable development in the ESG aspects will apply to Wszystkie/All public entities.
According to the CSRD (Corporate Sustainability Reporting Directive, replacing the NFRD), as early as 2024 for 2023, Wszystkie/All public entities will be obliged to report not only financial information, but also non-financial information in the Uniform European Standard with digital tags. An audit of such a report will be also obligatory.
A less detailed reporting standard will be developed for SMEs that are registered on the stock exchange. Registered on stock exchange SMEs will be required to report information, probably three years later, in 2027 for 2026. Other MSMEs will be able to use this simplified standard for voluntary reporting in their communication with stakeholders.
The standards should be published by the end of 2022.
The report will most likely identify the impact on sustainability in the short, medium and long term.
Such a report will also give information about the impact on the Global Goals.
So, a sustainable development strategy based on the SDGs becomes an important and urgent matter.
Due to value-building chains, which sometimes span globWszystkie/Ally, the standard should be one for business Wszystkie/All over the world.
The European standard will be harmonized with the global standard of sustainable development reporting in the ESG system.

In conclusion

Once again, I urge you to build a sustainable development strategy until 2030 as your main business strategy.
I urge you to seek the common good with the tenderness, that Olga Tokarczuk writes about. With a tenderness that is favoring what is good for existence on a singular and on a planetary scale.
MSME strategy – SDGs and ESG

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