Being an irreversible process for companies, sustainability is a competitive advantage in an international context.
In Portugal, the ESG Strategy for Exporting SMEs was launched in September 2023 to support these companies in adopting ESG practices.
The ESG strategy (Environmental, Social & Governance in English) is part of the Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Due Diligence (CSDD) and Corporate Sustainability Reporting Directive (CSRD) of the European Union, whose implementation calendar begins in January 2024 for the financial sector and large companies.
For SMEs listed on the stock exchange, reporting will start from 2027 based on 2026 information (SMEs included in the value chain of large companies should also prepare from 2026).
The new rules involve companies adopting environmental measures, such as mitigation and adaptation to climate change, as well as the general environment, for example, biodiversity preservation, pollution prevention, and circular economy. On the other hand, social measures may address issues of equality, inclusion, labour relations, work-life balance, investment in people and their skills and communities, as well as human rights issues. Regarding business conduct, good governance of public and private institutions - including management structures, employee relations, and executive remuneration - is considered fundamental to ensure transparency and the inclusion of social and environmental considerations in the decision-making process.
OECD Guidelines
Sustainability is a concept that, in the classical sense of the United Nations, refers to the ability to meet the needs of the present without compromising those of future generations. It entails finding a balance between economic, social, and environmental development to ensure the long-term well-being of societies while preserving natural resources and biodiversity.
The OECD Guidelines for Multinational Enterprises are a set of principles and recommendations aimed at promoting environmentally responsible business practices on a global scale. They serve as a fundamental instrument to guide corporate activities.