Spanish SMEs have been essential so far in the development of sustainability in Spain. However, they caution that obligations linked to environmental, social and governance (ESG) factors are becoming a major challenge. Specifically, 75% of the companies surveyed for the study view ESG efforts as a priority and more than 80% identify barriers to integration, mainly due to high costs and the size of the company.
This is one of the main conclusions drawn from the report on SMEs and sustainability in 2024 prepared by FINRESP (Spanish Centre for Responsible and Sustainable Finance) and its sponsoring associations (AEB, CECA, INVERCO, Unacc and UNESPA), together with CEPYME (Spanish Confederation of Small and Medium-sized Enterprises), as part of FINRESP's Sustainability Observatory of SMEs. The results were presented today at an in-person conference which also brought together experts from the financial and the SME sector to analyse the current situation of these organisations in terms of sustainability.
The conference focused on the degree of integration of sustainability in SMEs
José María Méndez, Chairman of FINRESP, was entrusted with the keynote speech of the conference, in which he stressed that 'at FINRESP, we focus our efforts on generating an exchange of knowledge that promotes the need to move towards a more sustainable productive fabric. In this context, SMEs play an essential role as a key player in the Spanish economy. With this objective in mind, today we advance in this work by presenting the Sustainability Observatory for SMEs and sharing the results of the report on the situation of this business segment with regard to sustainability'.
Gerardo Cuerva, Chairman of CEPYME, was asked to close the conference, stressing that: 'Spanish SMEs have been the driving force behind the progress of sustainability in Spain, even if they did so without even knowing that they were doing it. However, right now sustainability has become over-regulated and excessively burdensome, which entails a major cost for small businesses'.
The conclusions of the report were presented by Jerusalem Hernández, Sustainability and Good Governance partner at KPMG Spain and head of the technical secretariat of FINRESP. Jerusalem noted the participation of more than 200 companies, which pointed out the benefits that sustainability will bring, in that: 'Three out of every four companies surveyed see benefits in undertaking ESG efforts, particularly in terms of reputational enhancement.In this regard, he pointed to the work being carried out beyond the implementation of environmental measures: '42% of SMEs already implement social initiatives, highlighting campaigns focused on work-life balance or to improve workplace environments, among others'.
At the same time, a discussion was held on the main benefits and barriers to the implementation of sustainability in SMEs, as well as the resources needed to address them. They also analysed the different sustainability strategies in SMEs and in the value chain.
The round table was moderated by Francisco Vidal, Director of Economics and Sectoral Policies at CEPYME, who delved into how companies have made progress in sustainability and the challenges they face in adapting it to the reality of SMEs. Arturo Revenga, CEO of Revenga, also took part, stressing that: 'sustainability is a key tool that allows us to be more competitive, which is why we have sought to integrate technologies to achieve low emissions and be at the forefront'; Patricia Vázquez, Director of Communications at RIC Energy, said: 'For years, we have seen that it is not only about having a sustainable activity, such as renewables. In our case, we have taken further steps to integrate environmental and social activities within the local communities where we operate, given that the rural world is very important to us'; and Nuria Herrero, Human Resources Director at Divisegur, who analysed challenges such as 'the difficulty in finding qualified human resources or in terms of regulation. Our aim is to be a socially responsible company in our day-to-day operations, as we are aware of everything that we can contribute'.
Main impressions and challenges for small and medium-sized enterprises
The report provides key data that explain the current situation of small and medium-sized enterprises with regard to sustainability, providing a clear overview of the current state of these types of organisations, which account for 99% of the Spanish productive fabric.
In this context, the study highlights that 71% of SMEs have implemented sustainability measures in the last three years. The vast majority of these companies (60%) have implemented environmental measures, including improvements in areas such as waste management and energy efficiency. In contrast, a mere 25% of the organisations have implemented measures to improve corporate governance in this period.
The report also highlights the challenges facing the sector in the coming years in terms of sustainability. Thus, almost half (48%) of SMEs know little or nothing about the existence of financial and insurance products with sustainability criteria. Among those that are aware, only one in four companies has accessed sustainable financial and/or insurance products.
In terms of resources for the integration of sustainability within this business segment, it highlights the key role of public-private partnerships in the coming years in supporting SMEs in their transition towards more sustainable practices through resources, training and adequate financing. With regard to regulation, 86% of companies say they are affected by sustainability regulations, with 35% feeling very affected.
A trend that is expected to continue in the future, with the implementation of new regulations already adopted. One example is the new Corporate Sustainability Reporting Directive (CSRD), which came into force at the beginning of 2023 and will extend its scope to listed SMEs as of 2026. Moreover, they will not only have to deal with regulatory requirements, but also with the supplier evaluation and certification processes of large corporates, which are increasingly integrating more and more sustainability information and performance criteria.
