Charmel Flemming
Unlocking the Power of ESG for SMEs: Insights from Charmel Flemming

In the latest episode of the SAICA Biz Impact Podcast, Luncedo Mtwentwe dives into the increasingly significant topic of Environmental, Social, and Governance (ESG) with Charmel Flemming, the founder and CEO of F12. As ESG becomes a central focus in boardrooms and business discussions worldwide, Charmel offers invaluable insights into how small and medium enterprises (SMEs) can benefit from integrating ESG practices into their operations.

Understanding ESG Beyond a Buzzword

ESG, often used interchangeably with sustainability, encompasses more than just environmental concerns. Charmel emphasises that ESG is an integral part of business strategy, not just a "tick-box exercise." It involves non-financial measures that identify risks and opportunities across all business sizes, including SMEs. She stresses, “It’s really about how you run your business authentically and sustainably, not just what looks good on paper.”

A common misconception is that ESG is only relevant for large corporations with extensive resources. However, Charmel highlights that SMEs also play a crucial role. She notes, “Corporates are auditing their supply chains for ESG compliance, which means SMEs must be ready to showcase their ESG efforts.” This readiness can open doors for SMEs to secure partnerships and opportunities with larger companies.

Charmel underscores the importance of authenticity in ESG practices. “You must be authentic in implementing ESG strategies,” she says. Businesses should focus on areas where they can make a genuine impact, and these efforts should be measurable. She advises SMEs to start small, identifying specific areas to focus on and measuring their progress to ensure long-term sustainability.

Starting an ESG journey doesn’t have to be overwhelming. Flemming suggests beginning with internal discussions within the business to identify key areas of impact, such as waste management or community involvement. “The people who know your business best are already inside it,” she says, advocating for leveraging employee insights to drive ESG initiatives.

She also highlights the financial benefits of ESG, explaining that reducing waste and optimising processes can directly improve a business’s margins. And touches on the potential for enhanced customer loyalty and brand reputation, as consumers increasingly value businesses with strong ESG credentials.

While ESG is not yet regulated globally, Charmel notes that businesses should not wait for regulation to act. Instead, they should recognize the opportunity that ESG presents and align their strategies accordingly. “There’s no one-size-fits-all standard, but being proactive about ESG can set you apart in the market,” she advises.

Her insights make it clear that ESG is more than just a trend—it’s a strategic approach that can drive growth, sustainability, and resilience for businesses of all sizes. As she aptly puts it, “ESG is not for someone else; it’s for you and the benefit of your business.” For SMEs, this means taking a thoughtful, measured approach to ESG that aligns with their unique circumstances and goals.

For SMEs looking to remain competitive and sustainable, embracing ESG is no longer optional. By integrating ESG into their core strategies, businesses can not only meet evolving market expectations but also unlock new opportunities for growth and impact. Charmel Flemming’s advice offers a practical roadmap for SMEs to begin their ESG journey, one step at a time.