BALANCE Green SMEs

Bringing Sustainability and Environmental Action
Together for Future

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https://www.balanceproject.eu/
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OVERVIEW
 Climate-neutral Continent by 2050
 The Green Action Plan.
 SME’s Struggle
 The need for Climate Action

BALANCE GOALS AND OBJECTIVES
 BALANCE addresses EU issues related to environmental and
climate goals
 BALANCE caters to the need for climate action.
BALANCE addresses EMEs financial, human resources and
sustainability
BALANCE Provided dedicated training program to SME’s
 Decision-Makers
Consultants

BALANCE
INFORMATION GATHERING AND RESEARCH
Belgium
Bulgaria
Cyprus
Greece
Ireland
Spain

THE MULTIPLIER PROGRAM
Today’s Presentation will comment on the following
 1 : Specificities of SME’s
 2 : European SMEs and Environmental policies.
 3: Self-assessment of SMEs’ Environmental Impacts

1.1 The Major Issues Related to SMEs
 CONCEPTS
 SMEs Definition
 SMEs Role
 SME APPROACH
 Operating Environment.
 SMEs Advantages.
 Compliance with GAP (Green Action Plan)

1.2 EU SME’s DEFINITION
Company category
Staff
headcount
Turnover
Balance sheet
total
Medium-sized < 250
≤ €50
million
≤ €43 million
Small < 50
≤ €10
million
≤ €10 million
Micro < 10 ≤ €2 million ≤ €2 million

1.3 EU DEFINITION BASED ON ECONOMIC TERMS
In an SME, the enterprise’s size (employees, turnover and balance
sheet total amounts) are not the only factors that should be taken into
account.
Several issues cannot be ignored in determining an SME, such as:
 Small size firms with additional recourses
 Reducing CO2 emissions
 Move the production to a more environmental-friendly stage .
 Transform the energy industry.
 Managing issues

1.4 THE ROLE OF SMES
European SME’s :
 Are the backbone of the European economy.
 Are the major contributor in sustaining modern-day economy.
 Provide innovations spread throughout Europe’s regions to solve
challenges.
 Are essential to economic conditions.
 Are fundamental in attaining the important twin goals of :
Sustainable economy,
Digital economy.

1.5 THE NEW APPROACH TO SME’s
In the Current Approach there is substantial confusion over :
 Which characteristics should express them.
 How SMEs should be viewed.
 Which policies are most appropriate and should be applied to help
and support them.
The literature and experience has shown that there have been
unsuccessful attempts to :
 Answer these concerns.
 Substantiate the success of the exciting approach.

1.6 NEW APPROACH TO SMEs
Need for a transition to a new SMEs role to achieve:
 Sustainable economic growth
 Building a circular and more resilient economy
Need for a multi-faced role of SMEs to respond to:
 Development and growth
 Alternative economic production models

1.7 THE DIMENSIONS TO APPROACH SMEs
The Three Major Dimensions

1.8 THE DIMENSIONS TO APPROACH SMEs
There are Three Major Dimensions in Assessing any SME
 The degree an SME fulfils its multiple advantages (i.e., Informal
Management, Flexibility etc.);
 The enterprising environment it conducts its business (i.e.,
Development Potential, Network and Supply Chains etc.);
 The degree it applies the Green Action Plan (GAP) (i.e., eco-
innovation, reduce CO2 emissions etc.)

EUROPEAN SMES AND ENVIRONMENTAL POLICIES
2 SMES AND ENVIRONMENTAL POLICIES

2.1 SMES AND ENVIRONMENTAL POLICIES
THE EUROPEAN GREEN DEAL
 To reach zero net emissions of greenhouse gases by the year
2050.
 To produce an economy where its success is independent from
resource use and maintain equal accessibility and inclusion for
all individuals.
 To achieve the protection, conservation and enhancement of
the EU’s natural capital.

THE GREEN ACTION PLAN
The GAP was developed to help SMEs exploit the opportunities
provided by the transition of the green economy.
It involves five principal strategies:
1. Green SME’s for more competitiveness and sustainability;
2. Green entrepreneurship for the companies of the future;
3. Opportunities for SME’s in a greener value chain;
4. Access to the markets for green SME’s;
5. Governance.
2.2 EU POLICIES FOR SMES MANAGEMENT

ENVIRONMENTAL ASSESSMENT STRATEGIES
There are two types
 ENVIROMENTAL ASSESSMENT: Applied to project that exert a significant impact on the
environment, ether by their nature or size such as highways or airports.
 STRATEGIC ENVIROMENTAL ASSESSMENT: A more general approach focusing on public plans
or projects such as agriculture or forest .
The common fundamental aspect of these two strategies, is their aim to ensure that the
projects that are more likely to impact the environment, are thoroughly assessed prior to their
approval or authorization and are consulted with the public as well
2.4 SMEs AND ENVIROMENTAL POLICIES

 CATEGORIES OF SMEs ENVIRONMENTAL POLICIES
 SMEs and environmental policies for SME management.
 Other National/Regional Policies
 Policies for Environmental Sustainability.
 Impact of Environmental Policies on SMEs.
 Greening Green Jobs
2.5 SMEs AND ENVIROMENTAL POLICIES

THE SMALL BUSINESS ACT (SBA)
Main Objective:
To implement the ‘Think Small
First’ strategy
It includes 10 individualized
principles to strengthen the
quality of your SME.

 THE SME PERFORMANCE REVIEW
The Performance Review is one of the basic tools that the EC utilizes
to monitor and evaluate the countries’ progress, regarding the level
of success when implementing the SME strategy and the SBA.
It emphasises the priorities listed by the SME strategy and the SBA
and provides comprehensive information on the performance of
SMEs in the Member States and other partner countries.

 ENVIRONMENTAL ASPECTS
 Minimizing the administrative burden on companies;
 Helping SMEs integrate environmental concerns into their businesses;
 Supporting regional and national networks;
 Building up local know-how;
 Improving communication;
 Providing funding
2.10 IMPACT OF ENVIROMENTAL POLICIES

CORPORATE SOCIAL RESPONSIBILITY (CSR)
CSR is a management ideology whereby businesses integrate their
social and environmental concerns in their firms’ operations and
interactions with their stakeholders.
Overall, CSR is the method with which a company achieves a balance of
economic, environmental and social imperatives (“Triple-Bottom-Line-
Approach”), while simultaneously addressing the expectations of
shareholders and stakeholders.

SOCIETY, CITIZENSHIP AND RESPONSIBILITY
The EC provided the Environmental Compliance Assistance Program to
help SMEs improve their environmental performances.
It aims to:
 Minimize the administrative burden on companies;
 Help SMEs integrate environmental concerns into their businesses;
 Support regional and national networks;
 Build up local know-how;
 Improve communication; and provide funding

2.12 IMPACT OF THE ENVIRONMENTAL POLICIES ON SMES
 POSSIBLE FINANCIAL OUTCOMES FOR GREENING SMES :
 Cost savings;
 Ensuring legislative compliance and anticipating future legislation;
 Reduced environmental risk;
 Meeting supply chain requirements;
 Improved relations with regulators;
 Improved public image and increased market opportunities;
 Employee enthusiasm.

2.13 GREENING GREEN JOBS
 GREEN JOBS
 Improve energy and raw materials efficiency;
 Limit greenhouse gas emissions;
 Minimize waste and pollution;
 Protect and restore ecosystems;
 Support adaptation to the effects of climate change.

2.14 GREEN JOBS
BOOMING SECTORS WITH GREEN JOBS
ENERGY DESIGN
AGRICULTURE
TOURISM
TRANSPORT

3. SELF-ASSESSMENT OF SMES’ ENVIRONMENTAL
IMPACTS

Environmental
management
Environmental
impacts
Tools, Indicators
and footprint
3.1 SELF-ASSESSMENT OF SMES’ ENVIRONMENTAL
IMPACTS

 It is the framework or method of work
followed by an organization in order to
achieve a certain behavior.
What is an Environmental Management System?
 It must define objectives and
commitments aimed at the continuous
improvement of its operations from an
environmental point of view.
3.2 ENVIROMENTAL MANAGMENT

What are the objectives of an
Environmental Managing System?
3.3 ENVIROMENTAL MANAGMENT
1. Ensure compliance with environmental
legislation
2. Establish and promulgate internal
policies and operating procedures
necessary to achieve the environmental
objectives of the business organization.
3. Identify, interpret, assess and prevent
the effects that the activity produces on
the environment.
4. To determine and specify the volume of
resources and the qualification of the
appropriate personnel according to the
level of existing risks and the
environmental objectives assumed.

3.4 ENVIRONMENTAL MANAGMENT
Objectives of environmental good practices
These seek to reduce the negative environmental
impacts caused by activities and processes
through changes and improvements in the
organization and development of actions:
1. Inventory control or tracking of materials,
wastes and emissions
2. Material handling improvements
3. Production improvements
4. Leak and spill prevention and control
5. Preventive maintenance
6. Selective separation of waste and emissions

3.5 ENVIRONMENTAL ASPECTS AND IMPACTS
Typology of environmental aspects and impacts

Environmental
aspects and
impacts

What is an environmental impact?
An environmental impact is
defined as any change to the
environment, whether adverse
or beneficial, resulting from a
facility's activities, products, or
services. In other words it is the
effect that people's actions have
on the environment.

3.1 TOOLS, INDICATORS AND FOOTPRINT
What is it?
What is it for?
Life Cycle Analysis

DEFINITION of CARBON FOOTPRINT
The Carbon Footprint (CF) is a subset of the
Ecological Footprint. The Carbon Footprint measures
the total greenhouse gases (GHG) emitted by direct
or indirect effect of an individual, organization,
event or product.
In reality, the CF is a simplified version of a Life Cycle
Assessment in which, instead of considering several
environmental impact categories at the same time,
only one of them is considered, the one related to
Global Warming.

Environmental footprint
TYPES
 Product footprint
 Organisational
footprint
COMPONENTS
Carbon footprint
 Water footprint
 Ecological
footprint

CARBON FOOTPRINT CALCULATION BENEFITS
 Improves the company's competitiveness at the international level. It
allows the company to access markets that were previously closed to it.
 Provides the opportunity to describe quantitatively and verifiably the
environmental performance of your products/services from a full life cycle
point of view and in an objective manner.
 It is used as an informative tool for the procurement and purchase of other
products and services. Its classification into groups allows comparisons to
be made between functionally equivalent products.
 It can be checked and validated by an independent third party to ensure
the credibility and veracity of the information contained in the EPD.

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