Why Do SMEs Need ESG Consultancy Now More Than Ever?

Customers and governments want companies to look out for the Environment, People, and Fairness. Big companies have reached a decent level, but there are many small and medium businesses that are still seeking help.

ESG (Environmental, Social, and Governance) consultancy helps sustainable SMEs understand what and how to do it. It guides them to follow rules, reduce risks, and grow responsibly. Ignoring ESG can mean losing customers and falling behind.

In this blog, we’ll explain why ESG Consultancy is vital for sustainable SMEs and how the Right Consultancy can help.

What is ESG Consultancy & how do they support Small business ESG?

The ESG Consultancy helps out organisations and businesses blend in Environmental, Social, and Governance practices into their operations. For the Small and Medium Enterprises, these consultants provide tailored guidance to build a Sustainable, Compliant, and Competitive business model.

Core Ways ESG Consultants Support SMEs:

• They scrutinise ESG performance and Identify Risks & Opportunities
• Provide Custom ESG Strategies synchronized with their business goals.
• They ensure compliance with ESG regulations like GRI or BRSR
• They support ESG reporting for Investors, regulators, and Clients.
• ESG consultancy for SMEs, train internal teams to build the ESG Capabilities.
• ESG Consultancy also helps organisations to reach a level where their green financing and government incentives can be procured.

Even with limited resources, startup sustainability benefits from the ESG Consultants’ support to make ESG practical, impactful, and growth-oriented.

Why ESG Matters to SMEs in Today’s Business Landscape?

Everything in the market of 2025 is revolving around Competitive, Sustainability, & ESG (Environmental, Social, & Governance) practices, which are no longer just for the huge Enterprises. The sustainable SMEs that try to blend in ESG benefit from the improved brand trust, Risk Management, Cost efficiencies, and easier access to Green Finance.

Global supply chains increasingly demand ESG Compliance from the vendors, making it a Business necessity. According to present data in India, only 29% of sustainable SMEs have implemented ESG Strategies compared to 50% of large firms. On realising this enormous gap, SEBI in mid-2025 started to review the ESG Disclosure norms & introduced rules for ESG bonds to make compliance more easily accessible for Smaller Enterprises.

What are the Key Pointers behind the Rising demand of ESG Consultancy?

The key reasons why the demand of ESG Consultancy among sustainable SMEs is rising, are as follows:

• The ESG Disclosure expectations of Investors & Lenders
• Involving the requirements of the Regulators
• The pressure of maintaining the Supply chain Sustainability
• To be the first choice among the Consumers preferences

What are the Common Challenges that startup sustainability faces?

The Common Challenges that startup sustainability faces are as follows:

• The very challenge that Small business ESG faces is lack of expertise in ESG Consultancy practices.
• Due to resource constraints ESG practices are not able to be adopted in house.
• There is limited access to Sustainability Reporting tools in the Organisations for ESG guidance for the Startup Sustainability firms.

What are the Advantages of an ESG Consultancy for SMEs?

There are more benefits of hiring an ESG consultancy for SMEs, such as:

• The Small and Medium Enterprises adopting ESG Practices through an ESG Consultancy get a merit of customised ESG Strategy development by them. Which they can apply to improve the credit score & credit worthiness.
• The ESG Consultancy for SMEs also provides ESG Guidance and also helps in risk identification & mitigation in the Organisation.
• The ESG Consultancy for SMEs is compliant with various Frameworks GRI, BRSR, and CSRD standards.
• By adopting ESG Consultancy for SMEs improves its access to the green financing & grants.
• ESG Consultants makes the Startup Sustainability Firms scalable and impactful among the other firms.

How to Choose the Right ESG Consultant for Your SME?

Though ESG is not yet widely known, those familiar with it understand how essential it has become. Slightly people & organisations are getting aware about the ESG practices and the one providing these ESG Services known as ESG Consultancy and the people worker in it ESG Consultant, basically help in to improve a  Companies Carbon-credit rate.

When we talk about ESG Consultants they provide ESG Guidance from an enormous businesses to SMEs. Our firm Sustrack, is an ESG Consultancy for SMEs which excels in guiding the companies through ESG integration with practical, scalable strategies. From compliance to Climate risk management, Sustrack provides a ready-made solution for the Small and medium businesses to become credible, competitive & ready for the future.