Updates
Why SMEs Cannot Ignore EU Sustainability Regulations
16 Oct 2024
Although SMEs are not directly subject to laws such as the Corporate Sustainability Reporting Directive (CSRD) and the Supply Chain Due Diligence Act (LkSG) and are therefore required to report, they are obliged to meet the demands and information requests of their large customers. Large customers are increasingly demanding detailed sustainability information from their suppliers in order to fulfil their own legal obligations. These requests pose particular challenges for SMEs, which now require immediate action.
The Challenges for SMEs
SMEs are facing a growing number of information requests, bringing various difficulties:
Diverse formats: Requests come in different formats such as Excel questionnaires, online portals, or individual documents.
Similar but varying content: Although the questions are often similar, they differ in detail, making standardisation difficult.
High manual effort: Processing requires significant time and resources, as automated handling is challenging due to the diversity of formats.
Risk to business relationships: Delayed or incomplete responses can strain the relationship with important large customers.
Why Immediate Action is Necessary
The indirect effects of EU sustainability regulation on SMEs necessitate a proactive approach:
Increasing demands from large customers: Companies need to expand their sustainability reports and require detailed information from their suppliers to do so.
Utilise competitive advantage: SMEs that can efficiently respond to requests and provide sustainability data strengthen their position in the supply chain.
Enhance efficiency: By optimising internal processes, SMEs can save time and resources.
Ensure future compliance: Early adjustment to requirements makes it easier to tackle future regulations.
Practical Steps for SMEs
To address these challenges, SMEs can take the following measures:
Centrally collect sustainability data: Implement an internal system for the systematic collection and management of relevant sustainability information.
Drive standardisation: Develop templates and processes to provide consistent responses despite different requests.
Train employees: Raise awareness among your team about the importance of sustainability and handling information requests.
Utilise digital solutions: Use software that recognises different formats and automates the response to requests.
How turnus.ai Can Support You
turnus.ai helps SMEs to quickly and automatically respond to information requests from large customers, regardless of the format. Our solution recognises various requests, standardises them, and delivers consistent responses based on your stored data. This saves you time and resources and ensures correct and uniform responses. Learn more at turnus.ai.
