Sustainability must be feasible for SMEs!

Interview with Claus-Andreas Boche and Christian Wienecke, Managing Partners at advisoryteam®

marketSTEEL: If you had to describe esgKMU in one sentence....

Claus-Andreas Boche: esgKMU is an integrated one shop solution specifically for SMEs that combines all subject areas and trades in an efficient partner model from a single source to turn the obligation to report on sustainability into a real opportunity for competitive advantage.

marketSTEEL: Please introduce your product. What makes your product special?

Claus-Andreas Boche: The compliant implementation of the ESG requirements (editor's note: Environmental, Social, Governance), which will be mandatory for around 15,000 German companies by 2026 at the latest, poses a major challenge for SMEs in particular, as reporting in 2026 means being able to use the key figures from 2025 in the report. For many companies, this is hardly possible at present. esgKMU is an efficient solution that is specially tailored to the needs of SMEs and helps to define the relevant ESG and optimization indicators, make them measurable and create sustainable value and competitive advantages through good reporting.

Christian Wienecke: Our product focuses on how companies can use mandatory sustainability as an opportunity and integrate it into their day-to-day operations. We see ESG as a comprehensive innovation, optimization and transformation process for the business model and the products or services, which goes far beyond mere reporting and compliance. As already mentioned, sustainability will become a legal requirement for more and more SMEs in the coming years, but when applied correctly, it opens up significant development and savings potential. Our approach of applying the double materiality analysis not only focuses on costs and risks, but also extends the analysis to opportunities that can lead to significant product or process innovations. As part of our ESG initiatives, we have already experienced in practice how tangible competitive advantages have emerged as a result.

Claus-Andreas Boche: esgKMU combines all subject areas and disciplines in an integrated, coordinated solution. Firstly, strategy and governance, where it supports management in defining and managing clear and sustainable corporate goals. Then, of course, data, processes and systems: we are open to technology and therefore enable the necessary data collection and processing in the existing system environment. The topic of law and compliance is particularly complex. esgKMU ensures compliance with legal regulations and enables compact risk management with technical experts in a well-coordinated team. However, a continuous improvement process is also important to us. This means that we provide the company with impetus for continuous improvement from the very first reporting cycle.

marketSTEEL: Why is esgKMU a good investment for companies, and why is it innovative and sustainable? What makes it so unique?

Christian Wienecke: esgKMU pursues the mission of transforming sustainability in SMEs from a mere reporting and transparency obligation in accordance with the CSRD into a business development opportunity. The goal that dealing with ESG/sustainability gives the company a relevant edge over its competitors is what drives us every day. That's why we have surveyed affected companies over the past year and used the feedback to develop the esgKMU solution, which specifically addresses the challenges, constraints and opportunities of SMEs on the sustainability and reporting journey.

Claus-Andreas Boche: It is important to us that we always work with our customers and partners on an equal footing. We are entrepreneurs ourselves and know that an investment should always offer a return on investment. This is exactly what we try to offer the customer with our approach - in addition to compliance with the reporting obligation, measurable, i.e. also monetary, benefits should arise for the SME.

marketSTEEL: Who are your customers?

Claus-Andreas Boche: esgKMU is primarily aimed at SMEs, particularly companies in the manufacturing industry, logistics and trade. Regardless of the maturity level of the company, esgKMU is flexible and adaptable. Many of our clients are still at the beginning of ESG implementation, while others are already in the continuous improvement process and benefit even faster from our collaboration. Our main goal is the sustainable transformation of SMEs. Nevertheless, we also support corporations that are looking for a goal-oriented alternative to their established partners.

marketSTEEL: What do you do better/differently than other providers? Why are customers more likely to choose your products?

Christian Wienecke: Unlike other providers in the sustainability market, esgKMU takes a holistic and integrated approach. All processes, responsibilities and interfaces are carefully coordinated and centrally orchestrated, as if from a single source. The company does not have to search for suitable trades and solutions from countless solution providers and service providers on the market - without any guarantee that the participants and components will harmonize with each other. Basically, the major auditors on the market follow a similar approach, albeit with considerably higher entry requirements in terms of available resources and the company's data, system and process performance.

marketSTEEL: What was the impetus for launching esgKMU on the market?

Christian Wienecke: Our German business location continues to offer an incredible number of opportunities, but is facing major changes. In addition to the economic challenges that already exist, the sustainability requirements for SMEs are almost impossible to implement. We often hear from our customers that we are one of the most expensive locations in the world in terms of labor, energy and materials, and then the EU and the federal government come along and suffocate these companies with more and more rules and bureaucracy. In most cases, they can no longer take care of this - there is simply no capacity for it. As a result, ESG is constantly falling by the wayside or being put off until later... a risky game if you consider, for example, the increasing transparency obligations arising from the LkSG, which large customers are likely to pass on to SMEs.

Claus-Andreas Boche: The “German Mittelstand” is unique internationally. They can react quickly and flexibly when the market demands it. Proximity to customers and short decision-making paths help to ensure that new, convincing products and services are constantly created from entrepreneurial challenges. There are 2,700 “hidden champions” worldwide - half of them from Germany. 99% of companies in Germany are SMEs, accounting for almost 50% of net value added. With their innovative products and solutions, they are often world market leaders and an essential link in the value chain. Helping them from their midst to continue to be successful, while meeting sustainability requirements and using them profitably, is what drives us every day

marketSTEEL: What do your customers say about you?

Christian Wienecke: The most important thing for our customers is close collaboration with us, including the SME's environment. Sustainable management is a question of attitude and corporate culture - this cannot be created “by decree” in the short term and requires constant support for its development. We position ourselves as the chosen partner for this journey, bringing all the necessary aspects into one model - and this is what our clients confirm. Our vision goes beyond short-term support for the ESRS reporting cycle. We are at our clients' side for the long term and are committed to continuous improvement and innovation. esgKMU is more than a product, we are a partner on your innovative sustainability journey.

Photos: advisoryteam