In a time characterized by crises and regulatory measures, the question of the future of SMEs arises. Three major challenges are at the forefront, particularly in the area of procurement: rising energy and commodity prices, the need for sustainable and resilient supply chains and the fulfillment of ESG reporting obligations.

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In today's economic landscape, SMEs face the dual challenge of remaining globally competitive and implementing sustainable strategies. Tacto's webinar took a comprehensive look at this key issue and presented the most important trends, regulations and strategic approaches that companies should consider today for a successful future.

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Sustainability as the basis for future security

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Sustainability has long been more than just a trendy topic - it forms the basis for a company's future viability. Karl von Carlowitz, the founder of the modern concept of sustainability, once said: "Sustainability is the basis for long-term success". Medium-sized companies need to put this philosophy into practice by not only fulfilling legal requirements, but also seeing sustainability as a strategic opportunity.

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The role of regulation

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The Corporate Sustainability Reporting Directive (CSRD) and the Supply Chain Act (LKSG) are key regulations that have a significant impact on SMEs. With mandatory reporting in accordance with the CSRD, companies will in future be forced to present their sustainability strategy transparently with regard to environmental, social and economic aspects. The German Supply Chain Act and its European counterparts require seamless monitoring of the entire supply chain in order to prevent human rights and environmental violations.

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Influence of regulation:

• Supply Chain Act (LKSG): Applies from 2024 for companies with more than 1,000 employees. In future, medium-sized companies will also be indirectly affected by their customers' requirements.
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• CSRD: From 2025, this will also affect SMEs that exceed certain turnover or employee figures. Around 15,000 companies in Germany are facing new requirements in this area.

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These regulations demand a high level of transparency regarding ESG-related activities (environmental, social, governance) and require compliance with human rights and environmental standards along the supply chain.

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Challenges in the SME sector

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According to surveys, SMEs see increasing complexity and additional resource requirements in particular as the greatest challenges in implementing sustainability measures. There is often a lack of special departments or resources that deal exclusively with the topic of sustainability. Here are some of the key challenges:

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1. Complex supply chains: Complete transparency and control over all links in the supply chain is necessary to meet the requirements of the LKSG.
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2. Skills shortage: Small and medium-sized enterprises (SMEs) in particular often lack the necessary expertise in the area of sustainability.
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3. High bureaucratic effort: The regulations require standardized data collection, which is almost impossible to manage without digital support.

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Starting points for companies: How can sustainability become a strategic opportunity?

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Nicolette Behnke from PwC, an expert in sustainability services, emphasized in the webinar that sustainability is not a temporary phenomenon. She recommended that companies prepare for a continuous learning process and build up internal resources.

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Practical approaches for a sustainable transformation:

• Integration into the business strategy: Sustainability should not be viewed in isolation, but should be established as part of the corporate strategy. In this way, the relevant specialist areas - from Procurement to sales and production - are included.
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• Use digital solutions: Digital tools are essential in order to reduce the administrative workload and record data centrally. These not only support the creation of reports, but also help to track and further develop progress.
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• Building resources for the long term: Sustainability is a cross-cutting issue that affects various areas of the company. It is advisable not only to rely on external advice, but also to develop sustainable expertise internally.

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Tacto - Digital solution provider for sustainable supply chains

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As a provider of a holistic supply chain solution, Tacto supports companies in integrating sustainability into procurement and meeting regulatory requirements. Tacto's approach combines efficiency and sustainability by digitizing processes and automating the collection of supplier data. This creates better transparency and enables companies to make strategic decisions based on relevant data.

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Core advantages of the Tacto solution:

• Future-proof supply chains: A holistic analysis uncovers risks and emissions along the supply chain and integrates them into reporting.
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• Compliance with minimal effort: Tacto makes it easy to meet regulatory requirements while minimizing administrative effort.
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• Partnership approach: The solution has been designed in such a way that companies can take their suppliers with them on this journey and integrate them into the sustainability strategy.

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Conclusion: Sustainability as a competitive factor and market advantage

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Sustainability offers medium-sized companies the opportunity to assert themselves on the market in the long term. Acting responsibly not only strengthens their own market position, but also promotes their attractiveness as an employer and business partner. Regulatory requirements are not merely an obligation, but can be seen as an opportunity to set oneself apart from the competition and design more efficient internal processes.

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Recommendations for companies:

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1. Take action now: Instead of waiting for perfect harmonization of regulations, companies should start now to integrate sustainability as an integral part of their corporate strategy.
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2. Build digital infrastructure: Sustainable transformation will hardly succeed without digital support. Investments in IT systems are therefore unavoidable.
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3. Build up resources and provide ongoing training: Sustainability must be practiced within the company. Building up and continuously developing internal resources are key guarantees of success.

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The webinar shows that sustainable transformation and global competitiveness are not opposites, but complement each other. Companies that invest in sustainability today secure a decisive competitive advantage in a rapidly changing market environment.

In our webinar: "Future-proofing SMEs: between sustainable transformation and global competitiveness", we discuss the sustainable transformation of companies with Dr. Lukas Köhler, parliamentary group leader of the FDP, and Nicolette Behncke, Partner in Sustainability Services at PwC.