Companies subject to the new regulations, especially large exchange-listed companies and players in the financial sector (and, indirectly, their suppliers, the vast majority of which are small- and medium-sized enterprises), will have to adapt to the new requirements. Many new acronyms will have to be learned by company managers if they are not to hear them for the first time in an important meeting.
OPTEN’s ESG service offers a solution at this critical time, supporting businesses in the process of transition and regulatory compliance. The unique benefits and innovative features of the service can be of particular benefit to the SME sector, where firms often lack the expertise or the human resources to tackle the issues themselves.
Large companies, by and large, have the knowledge and staff to allow them to collect the data required by law. SMEs, which make up the majority of suppliers to these companies, lack both and are, therefore, particularly open to solutions that will help facilitate their work.
For them, OPTEN’s ESG system could prove particularly useful. For example, the system automatically calculates carbon emissions from utility service data. However, access to that information can also be managed by proxy, both through accessing energy supplier data and billing data.
Overall, ESG regulations present a significant challenge but also a massive opportunity for the SME sector. Early adaptation and a proactive approach could prove crucial to future success. It may seem like a task that can be put off at the moment, but it is worth considering the HR, PR, sales and marketing benefits that it could bring to a company.
Furthermore, large companies already affected by ESG legislation increasingly demand much greater transparency from their suppliers. Thus, it is clear that companies that actively address and prioritize ESG and sustainability issues will find themselves in a much better position to win supplier tenders.
If you feel that your business has outgrown the domestic market and you want to compete internationally, OPTEN has a tool to help you find business partners in 27 countries across Europe. Visit opten.eu for more.
This article was first published in the Budapest Business Journal print issue of February 9, 2024.
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