OECD Global Dialogue on SME Sustainability Reporting

Sustainability reporting is essential for SMEs to access financing, integrate into supply chains, and gain a competitive edge. It helps SMEs improve their resource efficiency, build stronger customer relationships, and ensure better alignment with regulatory standards.

Despite these benefits, many SMEs—particularly in emerging economies—struggle with limited resources, expertise, and tools to measure and report sustainability performance.

To address the various challenges facing SMEs, the OECD’s Platform on Financing SMEs for Sustainability conducted a study on key sustainability reporting frameworks, from which an initial set of streamlined reporting indicators were proposed. These indicators will form the foundation for discussions in the dialogue.

This global multistakeholder platform will focus on:

• Core Indicators: Evaluating the core set of indicators proposed by the OECD, weighing their importance in meeting the essential data needs of financial institutions and supply chain partners against the reporting costs that they impose on SMEs.
• Additional Metrics: Considering the addition of further metrics such as biodiversity impact, sustainability certifications, supply chain engagement, and diversity and inclusion, weighing their disclosure value against the cost for SMEs.
• Customisation: Exploring the relevance of tailoring the framework to the size, sector or geographic and development context of the enterprise.
• Guidance: Developing a common approach to SME sustainability reporting.

Even with a streamlined set of indicators, SMEs still face various reporting challenges related to time consuming data collection, complexity of calculations, limited access to skilled staff, as well as navigating an ever-growing range of tools, often hindered by language barriers.

The dialogue will identify actionable solutions to facilitate SME reporting, including:

• A Simplified Reporting Framework: Developing a simplified reporting framework which is proportionate to SME’s limited resources and capacities.
• Practical Tools: Offering affordable, easy-to-use tools and advisory support.
• Digital Innovations: Leveraging technology to streamline data collection and reporting processes.
• Action-Oriented Support: Ensuring that tools bridge the gap between measurement and taking actionable steps to transitioning towards sustainable business practices.
• Capacity Building: Establishing training programs for SMEs and service providers to ensure readiness for reporting, investment and greening actions.

Miriam Koreen

Miriam.Koreen@oecd.org

Marija Kuzmanovic

Marija.Kuzmanovic@oecd.org