IFAC Launches Interactive Sustainability Checklist for SMEs

Posted 01 July 2025 Written by Acts Online
Category Business Management

Brought to you by SA Accounting Academy: The International Federation of Accountants (IFAC) has transitioned its Small Business Sustainability Checklist into an interactive online tool to assist practitioners and SMEs in identifying environmental, social, and governance (ESG) risks and opportunities.

The International Federation of Accountants (IFAC), in collaboration with the Edinburgh Group (EG), developed this resource to provide a practical framework for small- and medium-sized enterprises (SMEs) to integrate sustainability into their strategic and operational workflows. This digital tool builds upon the static checklist originally issued on 21 November 2023, offering a structured self-assessment across ESG dimensions.

The tool utilizes a diagnostic scoring system where users evaluate their sustainability initiatives against three levels of maturity:

  • Limited: Early-stage awareness with minimal formal processes or documentation.
  • Underway: Active implementation of sustainability measures with emerging evidence of progress.
  • Maturing: Integrated sustainability practices with established monitoring, evidence, and reporting mechanisms.

The checklist is designed to be tailored to specific industry sectors, product lifecycles, and service offerings. It enables practitioners to identify specific regulatory and operational risks while informing a roadmap for business improvement. For professional accountants, the tool provides a basis for developing sustainability advisory services, helping clients translate high-level ESG concepts into actionable business steps through a simple self-assessment approach.

What this means for you, your business, or your clients

  • For yourself: Use the diagnostic tool to enhance your technical competency in ESG frameworks and to structure your professional development around sustainability advisory standards.
  • For your business: Apply the checklist to your own firm to ensure compliance with evolving ESG expectations from corporate clients and to identify internal governance risks that could affect professional indemnity or procurement.
  • For your clients: Utilize the tool as a formal diagnostic framework to help SME clients prepare for future sustainability reporting requirements and to mitigate environmental or social risks within their supply chains.

Originally published at https://accountingacademy.co.za/news/read/ifac-small-businesses-sustainability-checklist

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