Interactive checklist addresses growing regulatory demands while providing practical implementation guidance
Businesses now have access to a comprehensive online resource designed to help them integrate sustainability practices into their business operations.
The International Federation of Accountants (IFAC), working with the Edinburgh Group, has developed The Small Business Sustainability Checklist: an interactive tool that guides businesses through environmental, social, and governance considerations relevant to their specific industry and business stage.
Addressing regulatory shifts
The tool’s launch comes as sustainability regulations continue to evolve globally, creating new compliance requirements and reporting expectations for businesses of all sizes. Many SMEs have struggled to understand how these changes affect their operations and what steps they need to take to remain compliant while capitalizing on potential opportunities.
How the tool works
The checklist uses a straightforward three-stage scoring system to evaluate sustainability practices. For each area assessed, businesses receive one of three ratings:
- Limited (1 point): Early stage or minimal implementation
- Underway (2 points): Progress has begun but more development needed
- Maturing (3 points): Well-developed practices in place
The assessment covers two main areas: Environmental Initiatives and Social Responsibility Initiatives. Based on responses, users receive targeted suggestions for improvement in areas where they score “Limited” or “Underway,” along with access to relevant resources. The tool operates on a simple principle: you cannot improve what you do not measure.
By providing this measurement framework, businesses can establish baselines and track their progress over time. For accounting professionals, the checklist serves a dual purpose. They can use it internally to benchmark and enhance their own firm’s sustainability efforts, while also deploying it as an advisory tool to initiate conversations with clients about integrating sustainability into their business operations.
Lee White, IFAC Chief Executive Officer, explained the tool’s practical focus: “This checklist is a practical tool to help small businesses benchmark and track their sustainability efforts, providing the resources and guidance to help them take the first step or make progress from what they’re currently doing.”
Unlike generic sustainability guides, this tool allows businesses to tailor their assessment based on their specific industry sector, business lifecycle stage, and the products or services they provide. This customization ensures the guidance remains relevant and actionable for diverse business types. The resource is specifically designed for IFAC and Edinburgh Group members to offer to their own members, creating a distributed support network for SMEs seeking sustainability guidance.
CA Rajendra Kumar P., Chair of the Edinburgh Group, emphasized the tool’s broad applicability: “As a coalition of sixteen accountancy bodies from across the world that is focused on supporting small- and medium-sized practices and entities, the Edinburgh Group expects this new tool will be hugely beneficial to those who use it.”
Real-world application
The checklist incorporates interactive videos featuring experiences from industry professionals who have already implemented sustainability practices. These peer-to-peer insights provide practical context for how theoretical sustainability concepts translate into actual business operations.
Industry leader Sarah Lawrance highlighted the tool’s broader implications: “IFAC’s new tool is more than just a guide to reporting, it’s a resource that fosters best-in-class sustainability practices and helps firms develop advisory services. As accountants and small businesses, we have a responsibility to consider our impact on the future, and this tool helps us all take meaningful action, no matter where we are on our journey.”
Beyond helping businesses understand their own sustainability requirements, the tool also supports accounting professionals in developing advisory services for their clients. This dual function addresses both the compliance needs of individual businesses and the service development needs of their professional advisors. “This checklist sparks essential conversations between accountants and their clients,” Lawrance noted. “It empowers accountants to position themselves as sustainability leaders within their firms while also guiding their clients toward their own sustainability goals.”
White emphasized that the initiative reflects longer-term strategic thinking: “This is all about building sustainable futures for both accounting practices and their clients, to face the global standards of today and tomorrow.” The tool represents an attempt to bridge the gap between evolving regulatory requirements and practical implementation guidance, particularly for smaller businesses that may lack dedicated sustainability expertise or resources.
How to access the tool
The Small Business Sustainability Checklist is available through IFAC and Edinburgh Group member organizations. The tool is designed specifically for accounting professionals to use within their practices and with their clients, rather than being directly accessible to the general public. Small businesses can access the checklist by working with their accountant or contacting their local professional accounting body.
IFAC member organisations worldwide can provide access to the interactive tool, which draws from more than a decade of expert-developed materials and guidance. The tool includes a disclaimer noting that IFAC and the Edinburgh Group disclaim responsibility for any consequences arising from its use, and users should apply professional judgment when utilizing external resources referenced in the checklist.
The tool is now available via IFAC’s website.
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