A recent survey of 288 SMEs across 44 countries has explored the key motivators and barriers to climate action, with a lack of clear government support and policy being one of the top barriers.
The survey from SME Climate Hub was designed to tap into the views of the 400 million SMEs in the world today. At present, SMEs account for two thirds of private sector jobs in the EU and contribute more than half the total added value created by businesses, meaning the contribution of SMEs to climate abatement and net zero is significant.
The SMEs surveyed cover a range of industries and activities, including creative arts, manufacturing, construction, hospitality and IT. Compared to 2023, reducing emissions grew in priority by 44 per cent for the SMEs surveyed, with only 3 per cent claiming to have deprioritised emissions reductions.
When asked what motivates SMEs to take climate action, 63 per cent responded “It’s the right thing to do,” 52 per cent mentioned “cost savings and return on investment,” and 46 per cent said it would differentiate their business from its competitors.
Differentiation and business status seemed to be a key driver of SME climate action, with 62 per cent stating “enhanced business reputation” was one of the principal benefits gained from taking climate action. This ties in with a greater number of organisations constructing meaningful environmental policies and communicating their climate goals, commitments and achievements.
As for barriers to climate action, 52 per cent of respondents cited a “lack of policies or government-sponsored benefits,” 52 per cent said insufficient funding, down from 57 per cent in 2023, and 39 per cent mentioned a “lack of data about current emissions.”
Limited awareness among consumers and suppliers alongside perception of high costs associated with sustainable products has been raised as a barrier for SMEs, highlighting a knowledge gap which may be slowing the uptake of green and low carbon technologies.
While finance is an area where many SMEs lack confidence in their understanding, other knowledge areas related to climate action have prospered. The top five actions respondents have taken to reduce their emissions include:
In total, 73 per cent of respondents have taken a business climate action training course to improve their skills and understanding.
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