UN Global Compact launches program for sustainable suppliers and SMEs

Bridgetown, Barbados, May 22, 2024 (GLOBE NEWSWIRE) — The United Nations Global Compact today announced the launch of its Sustainable Supplier and SME Program at the Global Supply Chain Forum. The new program provides small and medium-sized enterprises (SMEs) with an exclusive platform for global exchange, business action and country implementation to accelerate sustainability in global supply chains and future-proof SMEs for the green transition.

Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, said at the launch event: “Companies participating in our Sustainable Supplier and SME Program will be better equipped to align their business strategies with corporate sustainability standards and emerging regulations. reduce climate action, attract finance, build resilience and become more inclusive and sustainable.”

Supply chains play a crucial role in global progress towards the Sustainable Development Goals (SDGs), with two-thirds of companies’ ESG footprints tied to their suppliers. With SMEs accounting for 90% of businesses, 50% of total global employment and nearly 40% of GDP in emerging economies, SMEs are key drivers of global progress in sustainability and inclusive grow.

However, SMEs face significant challenges in adopting sustainable practices and taking advantage of opportunities in the green economy, including access to finance and information, vulnerability to supply chain disruptions and issues with reporting requirements in a complex regulatory environment. These challenges are even greater for minority-owned businesses, which often face higher capital rates due to limited access to assets, shorter credit histories and discrimination based on sex, age, race, sexual orientation and gender identity.

The UN Global Compact has an extensive history of working with SMEs to achieve their sustainability goals, with SMEs making up more than half of the more than 20,000 participants. Successful Sustainable Supplier Impact projects in India, Nigeria, Kenya and Spain have fostered deeper collaboration between major participating companies and their suppliers on pressing sustainability challenges. These pilots have created a community of practice for collaborative learning, facilitated market and financial incentives for SMEs, and provided suppliers with the knowledge and tools needed to achieve the Ten Principles of the UN Global Compact.

The story continues

“We aim to provide a robust set of skills and tools through our programs to ensure SMEs can achieve sustainability wherever they are,” said Ojiambo. “In recent years, the UN Global Compact has expanded its presence in developing countries through country networks and launched five regional hubs in Abuja, Bangkok, Panama City, Copenhagen and Dubai, all of which have a dedicated focus on SMEs and sustainable supplier engagement. ”

An important pillar of the new program is the SPARK Collective, a community of SME participants and suppliers. Participating SMEs will gain a competitive advantage by positioning their companies as suppliers of choice and accessing a dynamic community of practice for collaborative learning and targeted action on pressing sustainability challenges such as scope 3 emissions, anti-corruption, gender equality, reporting and compliance. Large companies will also benefit by driving the adoption of the UN Global Compact’s Ten Principles in their supply chains and ensuring their suppliers remain relevant in today’s market.

Notes for editors

About the UN Global Compact

As a special initiative of the Secretary General of the United Nations, the UN Global Compact is a call for companies worldwide to align their activities and strategies with the Ten Principles in the areas of human rights, labor, the environment and anti-corruption. Our ambition is to accelerate and scale the global collective impact of business by upholding the Ten Principles and achieving the Sustainable Development Goals through responsible businesses and ecosystems that enable change. With more than 20,000 participating companies, 5 regional hubs, 62 country networks covering 77 countries and 14 country managers setting up networks in 20 other countries, the UN Global Compact is the world’s largest corporate sustainability initiative – one Global Compact uniting companies for a better world.

CONTACT: United Nations Global Compact (212) 907-1301 [email protected]