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The increasing complexity of markets, the intensification of European regulation and the changing expectations of consumers and investors have made ESG (Environmental, Social and Governance) criteria an unavoidable dimension of business management. It is no longer just about aligning with best practices — it is about ensuring the continuity, relevance and credibility of the business.
In this context, Small and Medium Enterprises (SMEs) play a fundamental role. Despite operating with more limited resources, they have agile structures and closer proximity to stakeholders, which gives them the ability to implement quick and meaningful changes.
In this article, we share 7 ESG practices that SMEs can start implementing right away.
More than simply replacing lightbulbs, SMEs should implement intelligent energy management solutions: motion sensors, lighting and climate control systems, and real-time consumption monitoring platforms. These technologies help reduce waste, optimise usage patterns and generate useful data for future decisions.
Going beyond traditional recycling is both possible and desirable. Adopting practices such as internal reuse of materials or returning waste to suppliers for reprocessing can generate economic and reputational value. This circular positioning places the company as an active agent in the transition to a more sustainable economy.
Introducing environmental, social and ethical criteria into purchasing decisions helps mitigate reputational risks and align the supply chain with the company’s values. In the medium term, this approach strengthens commercial relationships and facilitates access to major clients who demand ESG compliance in their value chain.
By valuing human capital, companies can promote cross-generational mentoring between senior and junior staff, encouraging mutual learning and breaking generational stereotypes. This practice reinforces the sense of belonging, improves organisational climate and stimulates internal innovation.
Creating a multidisciplinary working group with representatives from different areas of the company helps structure the ESG approach, define realistic goals and monitor progress indicators. Its existence strengthens a culture of shared responsibility and supports strategic alignment across departments.
Business ethics should not just be a code, but a practical lens for evaluating decisions. Companies should systematically assess the ethical, environmental and social impacts of their strategic decisions. Defining integrity, transparency and stakeholder rights criteria is essential to build internal and external trust and to prevent legal and reputational risks.
Effective communication of ESG practices does not require expensive resources, but rather clarity, consistency and authenticity. Companies can create visual indicator panels — such as energy consumption, emissions avoided, number of social actions — for internal sharing or inclusion in corporate newsletters. Sharing this information strengthens the company’s commitment and differentiates it in the eyes of clients, investors and institutional partners.
These seven practices represent a first level of ESG operationalisation with low cost and high return. They serve as a risk mitigation tool, a lever for competitive differentiation and a solid foundation for developing a more resilient organisational culture aligned with today’s challenges.By adopting these measures, SMEs are not only meeting external expectations, but also building, on their own initiative, a more strategic and ethical positioning, better prepared to attract talent, funding and new markets.
If your company is planning to move forward with large-scale projects — such as installing renewable energy production systems, implementing environmental certifications, redesigning production processes or investing in sustainability training — there are funding lines under Portugal 2030 specifically designed for this purpose.
These incentives, which include non-repayable grants and highly competitive financing conditions, represent a real opportunity for a green transition with direct economic impact.
Get informed, define a solid strategy and turn your SME’s sustainability ambition into a viable project with European support.
Yunit Consulting: Together, we take the leap
Last updated: 21/07/2025
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