Climate Change Increases In Priority For SMEs But Barriers To Action Remain: Survey

A new survey indicates reducing greenhouse gas emissions grew in importance for small and medium-sized businesses (SMEs) in 2023 but that greater support from enabling policies and funding is needed.

As regulation and customer expectations increase, and climate change continues to impact SMEs at a greater rate, SMEs are prioritizing taking climate action. In the past year, reducing emissions grew in priority for 44 per cent of SMEs surveyed and maintained the same level of priority for 53 per cent of SMEs.

Compared to last year's survey data from the SME Climate Hub, SMEs are facing an 11 per cent increase in pressure to take climate action from shareholders, investors and customers. Although SMEs suggest they want to take climate action, the survey also indicates they need more support.

Of the 288 SMEs polled, 52 per cent cited a lack of policies or government-sponsored incentives and benefits as barriers to climate action. Insufficient funding was cited by 52 per cent of respondents, with 39 per cent saying lack of data about current emissions was hampering action on climate change. A lack of time was seen by 29 per cent as a barrier to action, while 29 per cent suggested a lack of skills and knowledge were impeding their ability to act.

Maria Mendiluce, Co-founder, SME Climate Hub said, "To transition to a clean and just economy, we cannot leave behind small businesses and the communities they serve. Small businesses are the nimble changemakers we need to push climate action forward, but we need an all-of-society approach that enables this action."

Mendiluce added that support mechanisms from governments and incentivising programs from partners such as financial institutions and corporate supply chain leaders are essential to enable small businesses to take more comprehensive action.