Non-financial reporting impacts the SMEs - Sustainability reporting practices for Small and Medium Enterprises

Abstract

This thesis examines the landscape of sustainability reporting among Small and Medium-sized Enterprises (SMEs), with a focus on identifying the challenges and opportunities these entities face in the context of global sustainability initiatives. Despite their significant role in the global economy, SMEs often encounter unique barriers adopting comprehensive sustainability reporting practices, primarily due to resource constraints and a lack of adapted regulatory framework. Through a mixed-methods approach that combines regulations analysis, awareness assessment and a case study which test the developed strategy this study reveals that while awareness and interest in sustainability reporting are increasing among SMEs, significant gaps in implementation and effectiveness remain but can be overcome simplifying the processes in the path towards sustainability reporting. This thesis contributes to the broader discourse on corporate sustainability by offering insights into the specific challenges faced by SMEs, proposing a framework for enhanced reporting that leverages existing resources and capabilities.