Boosting Small-Medium Enterprise Sustainability Speeds Up Global Climate Goals, Unlocks Financial Advantages Worldwide
The World Economic Forum's latest report, "Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers," emphasizes the strategic importance of environmental sustainability for small and medium-sized enterprises (SMEs). The report, released in collaboration with Schneider Electric, proposes a structured approach to help SMEs integrate sustainability into their operations and business strategies, aligning environmental goals with economic growth.
The report provides a five-stage roadmap for SMEs, guiding them through the process of sustainability integration. This practical framework aims to help smaller manufacturers and mid-sized companies embed environmental practices into their business models effectively.
SMEs are encouraged to view sustainability as a competitive advantage, particularly in fast-changing economic and regulatory environments. By decarbonizing value chains and adopting green innovations, SMEs can differentiate themselves and unlock new business opportunities.
The report highlights the critical role SMEs play in global supply networks and emphasizes the importance of integrating sustainable practices in sourcing, production, and logistics to reduce greenhouse gas emissions.
To facilitate the transition, the report calls for enabling support mechanisms such as access to financing, technology, and capacity-building programs. Collaborations and partnerships can help SMEs overcome resource limitations commonly faced by these businesses.
The report also stresses the need for a shift in mindset, encouraging SMEs to perceive sustainability investments as drivers for economic growth rather than expenses. This mindset shift helps in mobilizing resources and commitment at the leadership level.
Given that SMEs often lack sustainability expertise, targeted training and knowledge-sharing initiatives are recommended to empower them to implement effective environmental practices.
The report's findings are timely, as global greenhouse gas emissions must peak before 2025 and decline by 43% by 2030 to stay on track with the Paris Agreement's goals. Small and medium-sized enterprises globally represent 90% of businesses and account for 40%-60% of business-sector greenhouse gas emissions.
Kiva Allgood, Managing Director of the World Economic Forum, stated that small and mid-sized manufacturers can be significant contributors to climate action, particularly in decarbonizing value chains. Esther Finidori, Chief Sustainability Officer of Schneider Electric, added that aligning SME sustainability with business growth is not only possible but essential to limit global warming to 1.5°C.
The report calls for a collaborative support mechanism from both the public and private sectors tailored to the specific needs of SMEs. The Annual Meeting of the New Champions 2025, scheduled to take place from 24 to 26 June 2025 in Tianjin, China, will convene over 1,700 leaders from business, government, civil society, academia, international organizations, innovation, and media to explore entrepreneurial solutions to global challenges.
References:
1. The World Economic Forum’s June 2025 white paper, "Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers" 2. Related analyses of SME sustainability challenges 3. A new white paper, Sustainability Meets Growth, suggests that fast-tracking SME sustainability transitions could help achieve Paris Agreement targets and stimulate economic growth. 4. The topics covered in the meeting include Carbon & Climate, Policy & Finance, Regions, Global, SDGs, Paris Agreement, inclusion, economy, emissions, supply chain, and trade. 5. A global survey of over 60 manufacturing SMEs, conducted for the report, reveals an evolving mindset towards sustainability: 68% have a positive outlook, 38% view sustainability as a business opportunity, and 60% cite customer demand as the primary driver for action.
- The World Economic Forum's latest report, "Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers," underlines the significance of environmental sustainability for small and medium-sized enterprises (SMEs).
- The report, collaboratively produced with Schneider Electric, presents a five-stage roadmap for SMEs, guiding them in embedding environmental practices into their business models effectively.
- By adopting green innovations and decarbonizing value chains, SMEs can distinguish themselves and uncover new business opportunities, according to the report.
- Integrating sustainable practices in sourcing, production, and logistics is critical for SMEs, as they contribute significantly to global greenhouse gas emissions.
- The report proposes enabling support mechanisms such asFinance, technology, and capacity-building programs to facilitate the transition towards sustainability for SMEs.
- Collaborations and partnerships with various sectors are essential for SMEs to overcome resource limitations and implement effective environmental practices, the report suggests.
