eSG Lab presents ESG risk detection framework for SMEs

May 12, 2022

Yesterday eSG Lab - a project by SDA Bocconi and Fondazione Sodalitas, co-founded by Enel Foundation and Falck Renewables - presented the results of the study “ESG risk detection framework and simplified reporting for Italian SMEs”. The event was opened by Alberto Pirelli, President of Sodalitas Foundation; Gianmario Verona, Rector of Bocconi University; Carlo Napoli, Deputy Director of Enel Foundation; and Enrico Falck, Former President of Falck Renewables. 

The framework presented was built relying on the information gathered through interviews to business leaders identified by Sodalitas in the CEOs Call for Action 2020, and an online survey sent to SMEsbelonging to the supply chain of Enel Group. Its purpose is to take a first step in the integration of sustainable guidelines in small and medium enterprises in Italy, contributing to develop protocols for a sustainable supply chain. The business leaders’ interviews confirmed the importance of ESG measuring and reporting. Nevertheless, these practices are rarely used by SMEs, mainly because of the lack of dedicated and simplified frameworks. The findings of the survey also highlighted that SMEs often adopt ESG related performance targets, indicators and KPIs, but do not use them for external reporting.

The findings confirmed the need to define a simplified ESG risk detection framework dedicated to SMEs, that is relevant to their needs, simple and low cost, flexible and adaptable to each specific case and compatible with existent tools. 

In order to set up a framework that could respect all of the above features, the Lab analyzed the main national and international frameworks, such as the World Economic Forum’s Stakeholder Capitalism Metrics, Confindustria’s Guidelines for the sustainable reporting of SMEs, GRI Standards, Project CSR-SC, EU ESG Taxonomy, SDG Action Manage and the International <IR> Framework.