A new study has been released today (14th February 2023) by the SME Climate Hub. The study reports on the climate action taken by SMEs. SMEs are a major part of the global economy, as 90% of businesses worldwide are SMEs.

The study was carried out by surveying 350 SMEs that lie within 20 different sectors, from 40 countries. Of these SMEs, 70% claimed that they wanted to take significant climate action, however, they felt that there needed to be more funds available to them to help increase the rate in which they are reducing their emissions, and to help them put sustainable strategies and plans in place.

47% of those surveyed have claimed that to reach net zero, they would need anywhere up to $100,000. To reach this target, these SMEs have stated that they would need an increase in investments from both the public and private sectors.

Many feel that this kind of investment will not only help them to decarbonise, but also reduce their green skills gaps, as well as increasing their knowledge and resources to combat climate change and reach net zero. 58% of those surveyed have claimed that these are barriers they are currently facing on their sustainable journey.

As businesses become obliged to measure ands report their emissions, 61% of the SMEs surveyed claim that they don’t have access to the measurement and monitoring tools they need, or that the ones they have access to are not efficient enough.

Pamela Jouven, the Director of the SME Climate Hub has stated that:

“Despite their collective impact on communities and economies, small businesses are often amongst the most vulnerable to change and disruption…

At the same time, SMEs have been the least equipped to mitigate their role in the climate crisis. Small businesses are facing greater risk while also potentially missing out on the benefits of building more resilient businesses and cutting costs.”