Sustainability should not be seen as purely a challenge for smaller practices. Sustainability initiatives help to create a more resilient business but also, by sharing your expertise learned through your own experience with clients, a real opportunity for growth.  

A baker, points out one of our panelists, eats their own bread – it makes no economic sense to do otherwise. The same argument applies to accountancy practices who are taking steps to implement sustainability initiatives. Their experience and knowledge will not just benefit the practice – it can form the basis of a valuable service offering for its clients. 

Our panel share their own experiences and tips for SMPs who are thinking of taking the first step towards sustainability but don’t know where to start, and address some of the key misconceptions and challenges around sustainability.

Taking the first step

The most critical step in the journey towards sustainability is to take that first step – because a lot of firms have not. Our panel set out the essential first moves:

• Educate yourself. For many people in every sector, sustainability is a term they recognise but cannot define with clarity. There are endless resources available, so begin by educating yourself about the various elements of sustainability and seeking out conversations with experts and other firms who are on various stages of the same journey.  
• Make sure you have the right people on the bus. Sustainability must be a collective effort – it is not something that should be confined to HR or finance. A variety of perspectives from within and outside the firm (the work of academic experts in this field can be particularly helpful) will give you the greatest chance of success.
• Understand your baseline. Self-awareness is essential. Sustainability reporting is often the most helpful place to start because it helps a practice (and business) understand where it currently stands, and where it wants to be. Identify the material issues that can help you form a strategy for sustainability, with associated targets and actions that will improve performance. 
• Identify the most accessible entry point. For small organisations that are starting out, something as simple as appointing a sustainability champion who will encourage colleagues to switch of equipment and lights at the end of the day, and to be more aware of their disposal habits, will help staff understand how their behaviour affects the organisation’s overall sustainability performance. 

Misconceptions and challenges

Sustainability is an ongoing process that takes time, and professional accountants have all of the right skills needed for successful implementation. It makes sense for an SMP to learn from its own experience and develop a sustainability service line for its clients. 

For many smaller businesses, their journey will be very similar to that of SMPs. It will need to begin with education, and the client will need support from the beginning of the process to the end. 

The biggest hurdle is often that people cannot see the value of sustainability and instead focus on the cost. Our panel recommends cost-benefit analysis and breaking down projects into short phases so the client can see the incremental impact – but sharing the practice’s own experience can be powerfully persuasive. 

The central message for both SMPs and their clients is that sustainability cannot be ignored. While mandatory sustainability reporting still mostly applies only to listed companies, the influence of large organisations on the supply chain mean that businesses of all sizes are increasingly expected to pay attention to sustainability and report on their performance. It is a matter of when, and not if, sustainability reporting will become commonplace for organisations of all sizes. For both practices and businesses, it makes sense to be a first mover. 

Key takeaways

Start small. ESG is a huge topic that can feel overwhelming. Starting with something as simply but impactful as how employees feel (though an engagement or happiness survey) can have a positive impact. People are at the centre of sustainability; how they feel at work affects many areas. 

Don’t delay. SMPs that do not pay attention to sustainability today risk becoming obsolete in the future, and the same is true of their clients; the impact of sustainability on the business model is profound. Get your own house in order first, and then help your clients do the same. 

Scan the horizon. New legislation is being continually developed by regulators around the world. Keep up to date with developments. The better prepared you are, the quicker you will be able to respond.