Interim sustainability expert helps SMEs get started with ESG work
Even though the EU's ESG legislation does not yet directly affect SMEs, the requirements may still impact them through larger customers. What should you do when bigger clients start asking about sustainability issues, but your sustainability efforts are still in the early stages? This is when it’s wise to turn to an interim sustainability expert, like Hanna Kämäräinen.
Hanna Kämäräinen is an interim sustainability expert who steps into the client’s shoes, bringing an external perspective and strategic expertise to the company's day-to-day ESG matters. She works as a consultant for companies that may not yet have their own in-house expert and need support in initiating and advancing their sustainability efforts.
From in-house expert to consultant
Hanna's journey into the world of corporate responsibility began during her studies when she took on a role as a sustainability manager for an SME, where she was able to build the company’s ESG work from scratch. She stayed in this role for several years until January 2023, when she joined Greenstep as a sustainability consultant.
Today, her work involves a variety of client projects, including comprehensive sustainability reporting, as well as carbon footprint and life cycle assessments. With the introduction of new EU legislation, Hanna has also helped companies prepare for CSRD reporting.
Hanna has experience both as an in-house sustainability expert and as an external consultant. How does working in these roles differ?
- When you're working inside a company, the advantage is that you become very familiar with it. But I've found that it can actually be challenging to see things objectively and to identify the best starting points for reporting. An external consultant, on the other hand, can bring a fresh perspective.
Combining the best of both worlds results in an interim expert service.
“Best of both worlds” – Working as an interim consultant
The interim service combines the best aspects of both in-house expertise and the role of an external consultant. An interim consultant gains in-depth familiarity with the company but also brings objective, outside perspectives and best practices drawn from experience across various industries and companies.
-Generally, in client companies, the process begins with me interviewing stakeholders and reviewing any existing sustainability information. After this, we conduct a workshop based on these findings, discussing key themes and mapping out a roadmap for future goals. We identify specific measurable objectives, create metrics, and establish reporting methods. Then, together, we start working on the sustainability report, Hanna explains.
Bringing an interim consultant into the company's daily operations allows for a very flexible approach to advancing sustainability work. Needs can shift mid-project, and since the consultant already knows the company, adjustments can be made more quickly.
Sustainability work in SMEs begins with a comprehensive current state assessment
Throughout her career, Hanna has worked extensively with SMEs, whose sustainability efforts are often still in early stages.
- Working with SMEs offers unique opportunities because these companies aren’t yet bound by strict directives for communicating sustainability. This allows us to discuss sustainability more flexibly, in their own language, Hanna says, adding:
- Often, we find that these companies are already engaged in sustainability work, even if they haven’t recognized it themselves. For instance, improving material efficiency, using renewable energy, or providing excellent employee services are actions many SMEs are already taking, but they simply haven’t known how to communicate them. When they realize they’ve already implemented good practices, their enthusiasm for sustainability grows: "This isn’t so difficult after all; we’ve already done a lot!”
SMEs often reach out when they need assistance with preparing a sustainability report or conducting a current state assessment. Typically, although SMEs don’t yet face EU regulatory requirements, their larger clients demand sustainability information, such as product carbon footprints and corporate sustainability goals.
- Requests have included, for example, drafting a sustainability report, but this process is not that simple. The goal with reporting is to ensure that the company understands the underlying data. The work is comprehensive and includes multiple phases.
Developing sustainability improves risk management and provides competitive advantage
Hanna reminds that it’s wise for an SME to start developing sustainability efforts at the latest when stakeholders begin to ask about sustainability issues. Additionally, if it’s recognized that the company’s clients include large companies with revenues exceeding 50 million euros, it’s important to consider that these large operators may be required to report on their sustainability. In such cases, it’s likely that inquiries from suppliers will start coming sooner or later.
- It’s definitely a good idea to start preparing for these inquiries soon. We are also happy to explain what these requirements might look like in the future, Hanna encourages.
Developing sustainability work brings additional advantages to SMEs:
- The Company's Own Risk Management
When assessing the current state of a company, they gain a deeper understanding of its industry and the future requirements. In workshops, companies identify the business risks within their own value chain. For example, if the material for components comes from a crisis area, they can prepare for potential risks and availability issues. Alternatively, if materials are sourced from an area where there is a recognized risk of human rights violations, they can choose an alternative supplier with lower risks.
- Competitive Advantage
Larger companies are required to understand the sustainability aspects of their value chains, which gives SMEs the opportunity to stand out in tenders. If an SME effectively manages sustainability issues, it can provide its customers with the necessary information about the sustainability of its products, thereby enhancing competitive success and customer relationships. In consumer markets, customers are also increasingly demanding regarding sustainability issues and want to know about the origin of products, the manufacturing process, and their impacts. - Preparation for Potential Future Expansion of EU Legislation
The development of sustainability is constantly on the EU's agenda. Although SMEs currently do not have strict reporting requirements, there may be changes to legislation in the future. By anticipating and developing sustainability practices, companies can prepare for upcoming requirements.
A practical translator for complex sustainability terminology
When a company is starting sustainability work from scratch, there’s a lot of research and problem-solving required. These skills are essential in the role of an interim consultant. It’s no surprise that Hanna has taken on this role, as she considers these to be her favorite aspects of her work.
- It’s great to be able to lighten the burden on smaller entrepreneurs from the demands of larger customers who require more advanced sustainability information. We’re able to simplify these requirements for them. I also think I’m quite good at translating complex sustainability terminology into more easily understood everyday language, Hanna smiles.
Hiring a part-time sustainability expert is an easy and light way to start sustainability efforts when your organization doesn’t otherwise have the resources. Schedule a meeting with us to discuss how an interim sustainability consultant could help your company.
Our interim experts assist with sustainability work not only for SMEs. Learn more about our interim expert services here!
Published 07.10.2024