Supporting SMEs in adopting and implementing ESG

Environmental, social, and governance (ESG) is shorthand for a principle that prioritizes environmental issues, social issues, and corporate governance. It is used as a framework to assess companies both among the financial and policy making communities. Very briefly put, it helps investors, regulators, and the public assess whether a company is acting responsibly and sustainably. 

The European Commission has been operating with ESG for some time. First and foremost, it is related to the European Green Deal. Furthermore, in the beginning of 2023, the Commission launched the new ESG directive CSRD which significantly transformed the reporting obligation of enterprises.

ESG can be complex and functions in a complicated legal system. SMEs therefore still struggle to understand why this agenda is pushed while also struggling to understand what they need to comply with. For public authorities and project partners, understanding ESG is not only about compliance, as it also represents an opportunity to strengthen their region’s competitiveness, support SMEs, and shape sustainable local economies.

As ESG compliance becomes a key condition for accessing both public and private funding, being ESG-ready becomes essential. For SMEs, it means access to new markets, increased resilience, and improved stakeholder trust. For public authorities, it is a chance to empower local businesses, drive green transition, and future-proof their policies.