Resources and FAQ's

As the emphasis on sustainability and responsible business practices grows, small businesses must effectively communicate their sustainability and impact to stakeholders, including customers, investors, and regulators. However, exaggerating your business impacts or hiding negative impacts and only focusing on good news can result in fines and losing the trust of your customers and clients. Therefore, formulating a comprehensive sustainability strategy is crucial. Equally significant is the ability to communicate that strategy effectively. This guide outlines the main principles and regulatory requirements for transparent and honest communication, emphasising the rules established by the UK Advertising Standards Association (ASA) and the EU Green Claims Directive. It also highlights how using Vested Impact’s assessment and data supports compliance and effective communication. Key principles for communicating sustainability and impact Simplicity: Use clear, straightforward language to describe your sustainability efforts. Avoid jargon and complex terminology that may confuse your audience. Accuracy: Be truthful about your sustainability practices and impacts. Do not exaggerate or make unfounded claims about your environmental and social contributions. In accordance with the United Nations directive to ‘lead with science,’ these goals should be grounded in scientific rigour, with a dedication to evidence, transparency, and accessibility. If you cannot provide your own business data, providing data or research that is relevant, credible and trusted is crucial ( Vested Impact can help with this). Transparency: Provide detailed information about your sustainability initiatives, including methodologies, data sources, and the outcomes of your actions. Transparency builds trust and credibility. Transparency extends beyond the sharing of success stories. It means being open about challenges, areas needing improvement, and even failures. The more open a business is about its sustainability journey - the good and the bad - the more credibility it gains in the eyes of stakeholders. Regulatory requirements and rules There are now a number of regulations, policies and standards addressing what businesses can and can not say regarding their business's sustainability and social impact. You should always check your local rules around how to label, market and communicate your products and business to avoid any fines or misrepresentation. Below are a few of the key regulations and standards for UK and EU businesses. UK Advertising Standards Association (ASA) The UK ASA mandates that all marketing claims, including those related to sustainability, are truthful, honest, and substantiated. This means companies must follow the principles of: • Accuracy : Ensure that all claims about environmental benefits are accurate and not misleading. • Evidence : Provide robust and science-based evidence to support any sustainability claims. This includes citing sources and data that back up your statements. • Specificity : Avoid vague claims such as "eco-friendly" or "green" without providing specific details about what makes your product or service sustainable. EU Green Claims Directive The EU Green Claims Directive targets greenwashing by requiring businesses to base their environmental claims on reliable and verifiable evidence. This regulation applies to all products and services marketed within the EU, regardless of the company's origin. Non-compliance can lead to fines, sanctions, and product recalls. The main requirements are as follows: •Comprehensive Evidence:  Claims must be backed by complete, science-based evidence that considers the product or service's entire lifecycle. •Transparency: Businesses must disclose all relevant information about their environmental impacts, both positive and negative. •Independence: The supporting evidence for claims must be independently verified to ensure objectivity. Steps to communicate your sustainability and impact Conduct a Science-Based Impact Assessment: Use Vested Impact to assess and quantify your sustainability efforts. This assessment will provide a robust foundation for your communications, backed by independent science-based articles and data. Disclose Actions and Policies: Be transparent about your business activities, including any negative impacts and the steps you are taking to mitigate them. This is particularly important to comply with the EU CSRD, which requires businesses report disclosure of both positive and negative impacts. Engage with Stakeholders: A study by the MIT Sloan Management Review found that 88% of executives agreed that stakeholder engagement was important to their sustainability strategy. Meanwhile, according to a survey by PwC, 45% of investors want companies to identify the societal stakeholders they view as most important. Create Clear and Honest Reports and Communications: Develop reports that are easy to understand and that accurately reflect your sustainability practices. Include specific details and evidence to support your claims. Communicate your sustainability efforts through various channels, including your website, social media, and marketing materials. Ensure that the information is accessible and understandable to all stakeholders. Conclusion Effectively communicating your sustainability and impact is essential for building trust and credibility with stakeholders. By following the principles of simplicity, honesty, transparency, and responsibility, and adhering to regulatory requirements such as those set by the ASA and the EU Green Claims Directive, you can ensure your claims are reliable and credible. Using Vested Impact’s comprehensive and science-based assessment tools further strengthens your ability to provide accurate and transparent information, supporting your business growth and sustainability goals How Vested Impact supports compliance and effective communication Science-Based Assessments: Vested Impact offers comprehensive and reliable impact assessments that help meet the rigorous standards required by the ASA and EU Green Claims rules for requiring science-based data and evidence.. Transparent Reporting : The platform generates detailed reports that include both positive and negative impacts, aligned with global standards such as the UN SDGs and EU CSRD. Independence: Vested Impact’s methodology is independent and not reliant on self-reported data, enhancing the credibility and objectivity of your sustainability claims by leveraging over 200 million data points from organisations like the United Nations, World Bank etc. -------------------------------------------------------------------------------------------- This guide is supported by Mastercard Strive, a portfolio of philanthropic programs – supported by the Mastercard Center for Inclusive Growth – which supports small businesses around the world to thrive in the digital economy.

How does Vested Impact define "activity" when you are assessing your business In Vested Impact, an "activity" refers to a product, service, or an action your business undertakes to make your products and services operate. This lets us get into the details that determine your impact. For example, your service might be literacy training. If you deliver the training online rather than in person, this affects the impact your training has on goals like preventing climate change. Similarly, if you use sustainable and fair-trade farming practices, it affects the impact of your products, and will get captured in your activities.  We do not, however, assess how your business operates. For example, we do not look at things like the percentage of women on your board or labour standards. This is because we are assessing the impact of your products and services, not of your business. These details are important, but get captured by other ESG metrics. There isn’t always a clear delineation between these different types of activities. We regularly review our methodology, and also welcome feedback from our client companies if they think a new activity needs to be added

The description of your company’s products and services forms the basis of your impact assessment. It is up to you how much detail you provide, but be sure toinclude all the products and services offered by your company for sale. We usually recommend at least one paragraph, but the more detail you provide, the more detailed and accurate our reports can be. You should briefly cover:  What you do, ie. what goods and services you produce How you do it, in terms of production and operations. You can highlight any production practices you use that might improve your positive impact, or mitigate negative ones.  Who you provide your products and services to too. You can highlight if you reach any underserved communities.  The information you provide in the description is used solely for the purposes of generating your impact assessment. Is not disclosed in your report, and we do no not share it with any third-parties without your permission.  Do’s: Please provide your description in English Provide a description of each product or service currently provided by your company When in doubt, over-explain Use clear, simple language that does not include acronyms or abbreviations so that it can be accurately interpreted by our algorithm  Don’ts: Don’t worry about needing specific metrics, like metric tonnes of carbon or kilograms  of waste. We don’t need them!  As the description is not visible in your report, don’t worry about making it “pitch perfect.” It should be simple and easy to understand. Example (short): Provide this level of detail if you want a good estimation of impact, but don’t have time to write a long description. Provide a summary of your business and list your goods and services.  OrganicMilk is a small-scale organic oat milk company. It provides a range of plant-based dairy products made from oats for sale to the public. We offer oat milk, oat-based frozen desserts, ice-creams, and yogurts; and ready-to-go drinks in a variety of flavours.  Example (longer): Provide this level of detail if you want the report to capture all your products and services, big and small, to generate more specific recommendations on how to increase your impact or minimise risk.  OrganicMilk is a small-scale, organic oat milk company and certified B Corporation. It provides a range of plant-based dairy products made from oats sourced from We buy our raw oats and ingredients from smallholder farmers in Malta, 50% of which are women-owned or co-owned.  We offer five main product lines: oat milk, oat-based frozen desserts, oat-based ice-creams, and yogurts; and ready-to-go drinks in a variety of flavours. We supply our products to large-scale grocery stores as well as smaller retailers, and we run our own online store for people to buy our products directly. All of our product lines are organic, pesticide-free, and use eco-friendly farming techniques to minimise our carbon footprint. All products come in fully compostable containers to reduce our impact on the environment.   This example is of a relatively simple company - larger or more complicated companies will have longer descriptions to ensure all their products and services are well captured. ​ Back to top ​

How to Measure Impact and Drive Growth Through ESG Impact Reporting Small businesses today must adapt to the heightened focus on sustainability and social responsibility. Impact monitoring and reporting are critical components for growth and no longer optional. This summary outlines why small businesses should focus on impact assessment, the scenarios where it can be beneficial, and steps to effectively implement impact reporting. Why impact monitoring and reporting matters Market expectations and regulatory requirements are increasingly mandating businesses to report on their environmental, social, and governance (ESG) performance. Incorporating ESG practices into your business can offer significant benefits: Access to contracts: From 2024, almost all large companies (about 92%) will ask their small business suppliers to share information about their environmental, social, and governance (ESG) efforts. Access to finance: According to the CBI, two-thirds of investors   consider ESG factors when investing in a business, meaning ESG has the potential to grow your business while benefiting the environment and society. Operations - According to a study by the Business Development Bank of Canada, adopting ESG practices can create new business opportunities for half of small businesses, help 32% find and keep employees, and make it easier for 31% to access financing or investment. Regulation & compliance - Governments, especially in the EU, are introducing new rules like the EU Corporate Sustainability Reporting Directive (CSRD). The CSRD requires large businesses to be transparent about their impact and the impact of the small businesses they work with. Small businesses need to understand the impact of what they do to stay competitive and do business with larger corporations Scenarios where demonstrating impact can be beneficial for small businesses: Access to Finance: Pitching to Investors:  Investors increasingly focus on ESG criteria when making investment decisions, with some required to report to regulators on the impact of businesses they invest in. Demonstrating a positive impact can attract more investors looking to fund businesses that contribute to the UN Sustainable Development Goals (SDGs). Loan Decisioning by Banks:  Banks are starting to consider ESG performance when assessing loan applications. A strong impact report can improve the likelihood of securing loans by showcasing the business's commitment to sustainability and responsible practices, as well as awareness and management of ESG and impact risks. Insurance:  Insurers may offer better terms and lower premiums to businesses that can demonstrate reduced risks through sustainable practices. Impact reporting can highlight these practices, making the business more attractive to insurers. Access to contracts and clients:   Increasingly, large businesses require their vendors to provide ESG data as part of procurement processes. By conducting a robust impact assessment, small businesses can enhance their chances of being selected and onboarded as suppliers, thus accessing new markets and customers​​​​. Steps to Meet Impact Reporting Requirements Governments, especially in the EU, are introducing new rules like the EU Corporate Sustainability Reporting Directive (CSRD). The CSRD requires large businesses to be transparent about their impact and the impact of the small businesses they work with. Small businesses need to understand the impact of what they do to stay competitive and do business with larger corporations. Understand Regulatory Requirements: Research and understand the specific ESG and sustainability reporting requirements relevant to your industry and region, including global standards such as the UN SDGs, Global Reporting Initiative (GRI), and EU CSRD. Although small businesses are rarely legally required to follow these standards, it is best practice to align with them as closely as possible . Conduct a Science-Based Impact Assessment: Use platforms like Vested Impact, which leverages over 300 million science-based data points to automatically assess and quantify the impact of your business activities. Vested Impact’s methodology offers a comprehensive, independent analysis of both positive and negative impacts on people and the planet, backed by data and science. This approach helps identify risks, opportunities, and impacts that might otherwise go unnoticed . Engage with Stakeholders: Businesses should engage a diverse range of stakeholders in their assessments and reviews to ensure that sustainability issues considered are not only relevant to the business but also reflect the concerns of those directly impacted by its operations, such as employees, customers, and communities. By listening to stakeholders, companies can more effectively identify and prioritise what really matters to both their business and society. Implement and Document Sustainable Practices: Integrate sustainable practices into your business operations. These could include reducing waste, optimising resource use, and enhancing social contributions. Document these practices meticulously to include in your impact reports. Report and communicate your impact: Create data-backed reports that outline your business’s impact across various dimensions, such as environmental sustainability, social responsibility, and governance. Ensure the reports are clear, transparent, and aligned with recognised frameworks and standards. Communicate your impact efforts and results to stakeholders (see tips on how to communicate your impact here) By leveraging impact monitoring and reporting, small businesses can not only meet regulatory and market demands but also unlock significant growth opportunities.  Through platforms like Vested Impact, small businesses can conduct accessible, accurate, science-based impact assessments, positioning themselves favourably in the eyes of investors, banks, insurers, and large corporate buyers. Download the PDF Guide here : Get started at www.vestedimpact.co.uk/sme ---------------------------------------------------------------------------- This guide is supported by Mastercard Strive, a portfolio of philanthropic programs – supported by the Mastercard Center for Inclusive Growth – which supports small businesses around the world to thrive in the digital economy.

ESG (Environmental, Social, and Governance) and impact both help businesses assess and improve their effects on society and the environment. Though related, each focuses on different aspects of a business's risk management and influence. In today’s rapidly changing business environment, understanding and integrating ESG principles into your operations is more crucial than ever. ESG stands for Environmental, Social, and Governance, and it reflects the three central factors in measuring the sustainability and societal impact of an organisation. For small businesses, embracing ESG is not just about compliance—it’s about driving growth, building trust, and staying c ompetitive. Why small businesses should care about ESG and Impact Access to contracts  - From 2024, almost all large businesses (approximately 92%) will require their small business suppliers to share information about their environmental, social, and governance (ESG) efforts.  Access to finance - According to the CBI, two-thirds of investors  consider ESG factors when investing in a business, meaning ESG has the potential to grow your business while benefiting the environment and society. Operations  - According to a study conducted by the Business Development Bank of Canada, adopting ESG practices can create new business opportunities for half of small businesses, help 32% find and keep employees, and make it easier for 31% to access financing or investment. Regulation & compliance  - Governments, especially in the EU, are introducing new rules like the EU Corporate Sustainability Reporting Directive (CSRD). The CSRD requires large businesses to be transparent about their impact and the impact of the small businesses they work with. Small businesses need to understand the impact of what they do to stay competitive and do business with larger corporations. Breaking down ESG and impact   Traditional ESG criteria have tended to focus on how a business's operations are affected by the environment, society, and the governance structure for managing its operations. It’s about the business’s internal policies and practices. Examples include: Environmental:  How does the business manage its operational environmental risks;  such as the impact of increasing costs from climate change, or fines or public backlash from waste generation etc? Social:  How does the business manage relationships with employees, suppliers, customers, and communities? Governance:  How does the business’s leadership, executive pay, audits, internal controls, and shareholder rights look? On the other hand, Impact goes beyond ESG by examining the actual outcomes of a business’s actions on the world. Impact measures the positive and negative changes caused by the business’s products and services on society and the environment. It’s about the external effects of the business’s activities. What is “materiality”? Regulations in Europe use the term “materiality” to describe the most significant risks, opportunities and impacts to a business. The idea with “materiality” is to focus on what matters most to your stakeholders, society and the environment. Impact Materiality:  This focuses on the significant impacts that a business has on the environment and society, regardless of their financial implications. Double Materiality:   This concept recognises that the financial performance of a business is affected by non-financial factors (like climate change) and that the operations of a business impact the environment and society. It is a two-way street, considering both how ESG factors influence the business and how the business influences ESG factors. How Vested Impact Helps with Impact Assessments Vested Impact makes impact assessments quick, easy, and affordable by automatically generating data-driven reports, leveraging over 300 million data points and science-based articles from sources like the World Bank and UN, our platform is one of the most advanced impact tools available. Our automated system evaluates business impacts in minutes, using specific data for each market and location. This helps small businesses assess their impact, meet regulations, and communicate sustainability efforts to investors and clients—without the hassle of manual reporting. Download the full PDF guide here : Get started here: www.vestedimpact.co.uk/sme   ------------------------------------------------------------------------------------ This guide is supported by Mastercard Strive, a portfolio of philanthropic programs – supported by the Mastercard Center for Inclusive Growth – which supports small businesses around the world to thrive in the digital economy.