The challenge
The proliferation of carbon accounting tools for SMEs has led to over 270(+) different solutions in the UK, resulting in fragmented and inconsistent data reporting. SMEs also face major challenges with numerous and varied data requests from large corporates and financial institutions.
This lack of standardisation affects the reliability and comparability of SME data, impacting their participation in sustainability reporting and green finance initiatives. A unified approach is essential for ensuring SME data is accurate, comparable, and compatible with larger corporate and regulatory requirements.
There is currently no agreed and comparable process for SMEs to report GHG emissions and sustainability impacts to customers, across industry, finance, and Government procurement processes. There is an imperative to seek consensus on SME sustainability attributes and ensure this is driven by not only what major corporates & financial institutions are asking for, but the quality data that SMEs are in possession of.
Links to research reports, briefs and articles setting out this challenge and informing our thinking can be seen below.
The solution
B4NZ is leading a dedicated workstream, collaborating with key industry partners to:
- Make recommendations towards a proportionate, comparable and interoperable sustainability (Including emissions) data reporting framework and underlying data requirements.
- Define standard rules and guidance for SME applicability and an SME quality framework. By working on a bottom-up approach, we can identify potential additional reporting requirements depending on size/sector, as well as ensuring interoperability with international reporting requirements for larger corporations.
SME Sustainability Data Taskforce Working Session Summaries:
- Taskforce Session 1
SME Sustainability Data Taskforce Working Group Members
SME Sustainability Data Taskforce Observer Members