At the heart of what we do at the World Fair Trade Organization (WFTO) lies a commitment to fostering fair and sustainable trade practices worldwide. We work closely with Small and Medium-sized enterprises (SMEs) that put the Fair Trade business model and sustainability at the heart of their operations, support them, guide them and create opportunities for them to populate our economy. We believe that SMEs are the future and that, despite their size, their impact can be truly global.
That’s why in February 2024, WFTO travelled to the 6th session of the UN Environment Assembly, focusing on how multilateralism can help tackle the triple planetary crisis of climate change, nature and biodiversity loss, and pollution and waste. Alongside the Green Economy Coalition (GEC), Ubuntoo and SEED we issued a call for new ways to catalyse multilateral action for environmental sustainability through green and Fair Trade MSMEs.
Photo credits: UNEA-6
The Role of Green and Fair SMEs in Our Economy
In a world where corporate accountability should be the norm, it’s the Small and Medium Enterprises (SMEs) that are leading the charge. SMEs constitute the largest population of economic actors both locally and globally, generating the most employment and securing the vibrancy of communities and local economies.
Despite their smaller size, SMEs are often at the forefront of innovative and sustainable business practices. They are community-centric, paying fair wages, and maintaining shorter supply chains. Their proximity to their communities allows for greater adaptability and innovation, compensating for their limited scale. We believe that championing SMEs is essential for achieving the long-overdue ecological and social transition our world needs. By supporting SMEs, we can build a more equitable, sustainable, and resilient economy for all.
Photo credits: (1) Manos del Uruguay, (3) Purna Nepal
Uruguay, (3) Purna Nepal
Challenges for SMEs are hindering sustainable development
Despite their significant potential to drive change and innovation, however, SMEs face numerous obstacles that prevent them from fully embracing sustainability practices and contributing to a more sustainable future.
One of the main challenges for SMEs is access to resources and funding. Unlike large corporations, SMEs often lack the financial resources and access to capital needed to invest in sustainable technologies, practices, and resources. Limited access to funding makes it difficult for SMEs to adopt environmentally friendly processes, develop green products, or expand their businesses in a sustainable way.
Another challenge is the lack of awareness and expertise in sustainable practices, often tied to regulatory and compliance regulations. Many SMEs may not have the knowledge or capacity to implement sustainable initiatives or comply with environmental regulations. This can result in missed opportunities for cost savings, efficiency improvements, and competitive advantages in the market.
A Hub for Sustainable, Green Solutions: accessible to everyone, everywhere
The WFTO Environmental Solutions Hub aims to address this gap between the potential of SMEs and their challenges by providing a central platform where SMEs can access a wide range of resources, expert advice, and practical tools for implementing sustainable business practices. By leveraging the collective intelligence of the Hub’s network and the expertise of organisations like WFTO-verified Fair Trade Enterprises, SMEs can overcome the challenges they face and unlock new opportunities for positive impact.
Resulted of the collaborations between the Green Economy Coalition, SEED and Ubuntoo, the WFTO Environmental Solutions Hub offers an opportunity to any SME which wants to improve its practices for a greener, fair and sustainable business:
- An innovative AI-powered sustainability consultant at your fingertips, vetted by industry professionals. This feature will serve as a valuable tool, equipping you with the knowledge and insights needed to enhance your environmental performance effectively. Available in English, Spanish, Portuguese, Arabic, French, German, Hindi and Mandarin!
- Practical sustainability solutions tailored to your business needs, covering aspects such as energy efficiency, waste reduction, sustainable sourcing, and eco-friendly packaging.
- The latest developments in environmental sustainability with our News tab will provide you with access to valuable insights and guidelines on both EU and non-EU compliance measures such as CSRD, CSDDD, ESRS, Green Claims Directive and more.
Would you like to learn more about it? Then you can join our webinar on the 8th of May, 15h00 CEST and address any questions you might have! Register at this link: https://us06web.zoom.us/j/86771516489?pwd=2wyTEPzVbrN4dvmVM2Nbob8jYkIn1q.1
