ESG

The most complicated challenge facing SMEs in the coming years will be the ability to select their suppliers according to ESG criteria, i.e. to identify, mitigate and monitor risks in their supply chain.

The EU Directive (CSRD) has extended, as of 2024, both the responsibility and the number of companies obliged to report. The new legislation requires so-called supply chain due diligence.

Micro and small-medium enterprises, although not covered by this obligation, will be indirectly pressurised by large groups to cascade risk assessments of their suppliers in order to be accredited on their vendor list.