Integrating ESG practices and natural resources management for sustainable economic development in SMEs under the double-carbon target of China

Abstract

Small and medium-sized enterprises (SMEs) have positive impact on the global economic growth. Since SMEs are under pressure to promote sustainable practices and aid in the transition to a low-carbon economy as a result of China's double-carbon goal. Due to financing issues and uncertainty, many SMEs find it challenging to adopt sustainable practices. The current study suggests integrating China's double-carbon objective with environmental, social, and governance (ESG) policies and resource management in SMEs. The study makes use of the Delphi and Fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) techniques to identify and assess the best strategy for decision-making in this situation. The study identifies and assesses a range of ESG practices and natural resource management integration strategies that can assist SMEs in lowering their environmental impact, enhancing their sustainability performance, and helping China meet its double-carbon objective. The findings indicated that eco-friendly packaging, implementing sustainable transportation practices, and setting carbon reduction targets are the most crucial strategies. These strategies are vital for SMEs to be sustainable and environmentally friendly, as shown by their ranking. This study has significant implications for evaluating and selecting the suitable strategies for incorporating ESG practices and natural resource management in SMEs while taking into account the ambiguities and haziness of decision-making. Therefore, SMEs should support environmental sustainability and build a more resilient and sustainable economy in order to achieve China's double-carbon objective.