The Centre for Sustainable Finance: Toitū Tahua (CSF) has launched a new resource aimed at helping New Zealand’s small and medium-sized enterprises (SMEs) navigate the complexities of sustainability reporting.
The guide, titled Starter for Ten: 10 Topics for SMEs to Start Sustainability Reporting, is a collaborative effort with KPMG New Zealand and features insights from New Zealand’s leading banks and financial institutions.
The launch comes as New Zealand SMEs face mounting pressure to align with global sustainability standards. With over 80 percent of the country’s exports headed to markets with climate-related disclosure requirements in place or forthcoming, businesses of all sizes are expected to adhere to these stringent international norms. Additionally, SMEs are encountering heightened demands from supply chain partners, customers, investors, and regulatory bodies regarding environmental performance.
“The need for SMEs to engage in sustainability reporting is not just a regulatory or market-driven expectation but also a crucial business imperative,” explains Jo Kelly, Chief Executive of the Centre for Sustainable Finance.
She says that Starter for Ten is specifically tailored to meet the needs of SMEs. “Our guide provides a straightforward approach to sustainability metrics, aligning with both local standards and international best practices. Businesses that understand their performance on these metrics will be better equipped to manage risks and capitalise on opportunities from shifting customer and lender expectations.”
SMEs often lack the resources to gather and report sustainability data consistently, which puts them at a disadvantage as the sustainability reporting landscape evolves. The guide addresses this gap by offering a clear and practical framework to kickstart the reporting process. It also serves as a vital tool for financial institutions, enabling them to assist small business clients while meeting their own environmental goals.
Nick Swallow, Director at KPMG New Zealand, highlights the importance of this initiative.
“More SMEs are waking up to the necessity of sustainable business practices, but many feel too small to make a difference and are unsure of where to begin,” he says.
“It’s encouraging to see New Zealand’s financial institutions rally behind this sector, acknowledging their critical role in shaping a more sustainable future for Aotearoa. With the right guidance and tools, SMEs collectively have the power to create significant impact.”
The Starter for Ten guide outlines ten key sustainability metrics and provides actionable steps for SMEs to report effectively. It is also designed to facilitate conversations between banks and their small business clients, promoting a collaborative approach to sustainable finance.
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