The PEARL project, aims to change how sustainability is approached in business and education. It focuses on building Environmental Social and Governance competences in small and medium sized enterprises and in vocational education and training. One of its key activities is the ESG Risk Assessment App, created to give companies a clear entry point into structured ESG work.
Many owners of small enterprises care about their impact but are unsure where to begin. ESG can seem technical, full of specialist language and reporting templates. At the same time, their businesses face challenges linked to energy prices, waste, working conditions and pressure from buyers to demonstrate responsible behaviour. Without a way to map these issues, it is difficult to set priorities or show evidence of progress.
The PEARL ESG Risk Assessment App is a digital tool that helps small and medium sized enterprises identify and manage environmental and social risks. Through a series of guided questions, it invites users to reflect on emissions, resource use, governance, diversity, training and resilience to external shocks. The results provide an overview of strengths and gaps and suggest areas where action would bring benefit.
Consider a small food processing firm that joins a workshop organised by a vocational education centre. During the session, the firm uses the PEARL App to review its use of water and energy, the way it sources ingredients and the support it gives to staff. The assessment highlights high levels of food waste, a lack of monitoring of electricity consumption and no written procedures on health and safety. Over the following months, managers introduce waste tracking, install meters to follow energy use and create clear guidance for employees. These steps reduce costs and improve working conditions.
The PEARL project links this tool to a wider package of support. The ESG Risk Assessment App is complemented by the ESG knowledge framework, modular learning materials and the interactive knowledge hub on https://esgforenterprise.eu. Together, these resources help small and medium sized enterprises and educators move from awareness of ESG risks to measurable action.
Across the European Union there are about 23 million small and medium sized enterprises, representing around 99 per cent of all businesses and two thirds of private sector jobs (European Commission, 2021). Strengthening their ESG competences through tools like the PEARL App is essential for a more sustainable and inclusive economy.
Reference:
European Commission, Small and medium sized enterprises, SME definition and key figures, Brussels, 2021.