How to unlock the SMEs’ contribution to the sustainability and well-being in society: SMEs, the upcoming EU sustainability reporting requirements, and the twin transition.

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Abstract

This paper explores how a social systems theoretical approach can facilitate Small and Medium Enterprises' (SMEs) involvement in sustainability and well-being by navigating the dual transition of sustainability and digitalization, including sustainability reporting. The analysis highlights the forthcoming EU framework (ESRS, CSRD, CSDDD) addressing past issues in Environmental, Social, and Governance (ESG) and Sustainable Development Goals (SDG) reporting. The framework's standardization, legal requirements, third-party auditing, and machine-readable format offer potential as a shared semantic reservoir in Europe.
The paper notes a tension between sustainability and well-being, especially in responsible consumption, production, and climate action. This tension arises from the journey and policy actions toward sustainability (the process rather than the end goal), emphasizing the need to address these tensions in working with these measurements, reporting, and policies for a smooth green and just transition.
A blind spot also is identified in the new shared semantics, particularly regarding sustainability as "do no more harm" rather than a regenerative approach. Thus, despite improvements, there is room for future enhancements in developing a truly multifunctional shared semantic reservoir.
The paper underscores that SMEs indirectly affected by the legislation can voluntarily report using simplified standards. Many SMEs face challenges in the twin transition due to limited skills, time, and resources for digitalization and sustainability transformation.
The paper accounts for the South Baltic Interreg Project CONSIDERATION's intervention strategy. It involves an engaged scholar approach, including developing and pilot-testing the solution, plus “training the trainers” and “training the SMEs” as well as developing a sustainable, viable organization after the project's end. From a social systems theoretical perspective, this intervention represents an ongoing learning process in a broad polycentric network linked by digital technology and an evolving shared semantic reservoir.
While acknowledging the project's early stage, the paper underscores the importance of future research in understanding the complex interactions between semantics, structural changes, and evaluating the intervention method. Future research should explore SMEs' perceptions and contributions to the emerging semantic reservoir formed by the EU sustainability reporting framework and digitalization, considering potential semantic displacements, trade-offs, and tensions. Additionally, research should examine dynamics between SMEs in different regions and their inclusion/exclusion in the broader sustainability and digitalization context.
OriginalsprogEngelsk
Publikationsdato2024
StatusUdgivet - 2024
BegivenhedEURAM 2024: Fostering innovation to address Grand Challenges - University of Bath, School of Management, Bath, Storbritannien
Varighed: 25 jun. 202428 jun. 2024
https://conferences.euram.academy/2024conference/programme-at-a-glance/

Konference

KonferenceEURAM 2024
LokationUniversity of Bath, School of Management
Land/OmrådeStorbritannien
ByBath
Periode25/06/202428/06/2024
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