OUR CORE ACTIVITIES

Urgent   climate action is needed to achieve net-zero targets, and  businesses  must set their carbon reduction targets to keep in line  with a 1.5°C  pathway. As the world transitions to low-carbon  production and  consumption, SMEs that have a climate strategy that  includes carbon  reduction targets and reporting against those  targets, are able to  compete now and in the future. On the other  hand, SMEs are often most vulnerable to climate-related risks. Physical  climate risks and damages can result in high financial losses. Climate  governance is an important  business process as businesses navigate  these risks.  

Water   scarcity is a long-term crisis in the making. Particularly due to   growth in the manufacturing and agricultural sectors, the demand  for  water is increasing despite its decreasing supply. If water  becomes  scarce, food security then becomes a challenge that  affects all living creatures. The entire business sector needs to make a  concerted effort to determine how to conserve our water sources before   they are completely depleted. 

The   processes involved in managing waste (from generation to  disposal) can  put a strain on the environment and accelerate  climate change. Companies would do well to embrace the concept of  Circular Economy which seeks to eliminate waste in the product life  cycle through restoration and regeneration. With materials being used in  a constant flow, there would be less energy consumed, less emissions of  harmful gases, and little to no waste generated. All this could  translate into cost savings for businesses.  

Businesses  have a social responsibility to protect human rights in all areas of   the value chain. When workers’ lives are put at risk of  exploitation,  unsafe working conditions and other forms of  violation in the course of a  company’s operations, the company’s  reputation and going concern will  also be at risk. SMEs as  employers of nearly 50% of the employment  market must be vigilant  to weed out human rights violations and step in  quickly with  remedial action.  

The business case for Diversity, Equality and Inclusivity (DEI) is  stronger  than ever. A diverse pool of talent brings with it a  wealth of skills,  knowledge and experience that can give  businesses a business boost. Companies  must treat all employees,  regardless of race, creed, ability or  preference, with the utmost  respect and must have zero-tolerance  policies against bullying and  discriminatory behaviour. The greater the  diversity, the greater  the likelihood of outperformance, therefore companies  must work to  create a safe space for all employees so that they can  enjoy the  benefits of having a diverse workforce.

Living   wages are an important part of empowering the community and  eradicating  poverty and inequality. Paying employees a living wage  would increase  their spending power, thereby stimulating the  country’s economy. Apart  from that, it is just good ethics to pay  an employee what they are  worth. SMEs employ the largest share of  employees and are thus  responsible for making sure a large portion  of the population make a  decent and sustainable living.  

Investors  will more often make an investment in an entrepreneur they like with an  idea they have some reservations about than an idea they like and an  entrepreneur they think is a jerk. ABSUC works with entrepreneurs  through the African SME Forum to develop on their entrepreneurial  journeys. It provides mentoring support and online coaching such as  planning stages, pitch deck and answering questions from angel  investors. Angels often have tons of questions, and that's a good thing,  it's a sign they are considering investing. ABSUC helps entrepreneurs  to focus on the conversation and how their investments will move the  business forward. By doing this, ABSUC hopes this will result into a  vibrant entrepreneur ecosystem in Africa with more young people  realising their potential as resources. 

Lack  of access to finance is consistently cited by SMEs, especially  women-owned businesses, as one of the main barriers to growth. Often  considered by commercial banks and financial institutions as risky and  costly to serve, women-owned SMEs are largely underserved when it comes  to basic financial services.

In  particular, women outside the formal financial sector, who are the most  vulnerable and the hardest to reach, become even more essential. ASFIN  works with members, government officials and other regulatory agencies  in African markets with the skills to identify, design and implement a  policy initiatives to advance women’s financial inclusion, coupled with  the skills to spur gender financing and create an enabling environment  to advance women leaders within their institutions.

Today  there are more than 1,700 ESG-related guidelines and 600+ frameworks,  including over 360 different accounting standards, some of which are  mandatory and will become mandatory in the future. ABSUC is pioneering a  performance benchmarking process to measure and analyze its members'  performance of investment products, services, operations, and other  business processes against other companies, competitors, or industry  leaders in the sustainability ecosystem in other regions. The goal is to  help members and non-members identify and understand areas for  improvement  through monitoring their business activities’  performance. 

This  process helps companies benchmark and measure several metrics, and  customer retention. ABSUC's Performance benchmarking/Ratings provides  insights into how other brands compare to one, even if their audience or  industry differs.

It  helps them track key performance indicators (KPIs) and strategise their  operations to achieve business objectives. Performance benchmarking  allows them to see how their business pans out against competitors or  best-in-class industry standards.

Overall, performance benchmarking allows businesses to:

• Analyze past performance
• Compare their operations against industry standards
• Improve processes, products, and services to increase customer satisfaction, build loyalty, and promote retention

Climate  change is leading to profound changes in the way businesses operate.  Especially for  SMEs, these changes will accelerate as  stakeholders, regulators and competitors respond to the global  challenges of climate change. As well as the challenges of capturing and  reporting climate-related financed emissions, the focus is now turning  to biodiversity restoration reporting. 

National  regulators and other regional policymakers are calling for the  biodiversity impacts of organisations to be quantified and understood.  This poses a huge challenge for investors in emerging markets like  Africa in terms of collating this data and processing it in a meaningful  way. ABSUC works with members, policymakers and partners on how  investors and companies are approaching the challenges of investigating  and disclosing their impact on the environment and on society. 

Recognising  that small and medium enterprises (SMEs) play a critical role in the  African economies and are also often very vulnerable to the impacts of  climate shocks and stresses, building their resilience becomes  paramount. Disasters in the region have highlighted the devastating  impacts faced by the SMEs. Climate change is a major concern for small  and medium-sized enterprises. As per Zurich Insurance Group’s (Zurich)  fourth annual global SME survey conducted a year after the Paris  Agreement, almost four-fifths (78%) of SMEs surveyed expected risks  associated with climate change to have a significant effect on their  business.