Fortifai's founder, Abbey Lin was recently featured in Kapital, Norway's oldest business magazine!
ESG compliance is fast becoming a requirement for doing business, but SMEs often struggle with an “ESG burden”. They are presented with expensive, complex solutions designed for large companies, which makes them hesitant to get started. However, ESG doesn’t have to be intimidating, as there are solutions tailored to these companies. All companies should contribute to global goals, not just the big ones. In short, there are three key steps SMEs need to keep in mind:
A digital technology company with 200 employees in low-risk geographies was offered NOK 800,000 for a risk assessment. Another company with 80 employees received an offer of over NOK 500,000 for a governance structure mapping.
Governments expect proportionate, risk-based action. If a complex strategy is only implemented 10 percent of the time, it’s a waste. So reject over-the-top proposals and ask, “Are we being sold a Rolls-Royce when a Toyota would do the job?” Start with free tools like SASB standards, the UN Human Rights Index, and the Corruption Perceptions Index to identify your starting risks. They’re often enough to get you on the right track, at the right level.
High prices often lead small and medium-sized companies to sideline ESG, hoping for a quick, cheap solution later. A CFO of a smaller ASA wanted a comprehensive CSRD checklist distilled to 1–2 pages for NOK 25,000.
Even if you don’t need a Rolls-Royce, it’s unrealistic to expect full ESG compliance at the price of an electric bike. Plan and budget thoughtfully and realistically. You don’t need to reinvent the wheel. Established frameworks – Environmental Lighthouse, ISO 14001, ISO 20400, ISO 37001 – are in line with CSRD. They’re like Ikea manuals: clear instructions, some assembly required, and you can integrate them over time. ESG reporting is different from implementation – think annual accounts versus full-year monitoring. They’re distinct activities that require the right resources.
Some people think that one sustainability or compliance officer can handle it all on their own. ESG covers a wide spectrum – environmental, social, governance – and one person can’t handle it all without support. If you hire someone, equip them with the right tools and budget. Don’t have the tools or budget? Then don’t bother hiring them; it’s like hiring a CFO and then refusing to buy accounting software. In many cases, SMEs don’t even need a full-time ESG officer. Given the challenges of finding the right person, it may be more practical to train a team member and give them the tools and processes.
Start now, one bite at a time. ESG compliance is like eating an elephant: take it one bite at a time. By starting small, being practical, and building gradually, you stay ahead of regulations, win bids, attract clients, and appeal to top talent. A lean, well-planned ESG approach is an investment in your company’s robust, competitive future.
https://www.finansavisen.no/esg/2025/01/19/8225957/esg-etterlevelse-er-oppnaelig-for-alle?zephr_sso_ott=5Jibi9
