The report, Where Next for SMEs and Net Zero?, reveals that despite contributing 13% of global carbon emissions and consuming 50% of commercial and industrial energy, SMEs often lag behind larger organisations in climate action initiatives.
The report also found the energy price crisis had made SMEs more vulnerable and emphasized the urgent need for targeted, place-based support.
Researchers spoke to 30 SMEs and more than 80 governance stakeholders as well as carrying out a review of current policies.
The report outlines five key areas for future policy:
- The changing role of government in steering and scaling activity to support SMEs.
- The importance of place-based business support with strong local networks.
- Opportunities for entrepreneurship in the net zero transition.
- The multiple roles SMEs can play in climate action beyond reducing their own emissions.
- The need for a just transition that considers the diverse contexts of SMEs.
Co-author of the report, Professor Will Eadson from Sheffield Hallam University’s Centre for Regional Economic and Social Research, said: “Our research shows that SMEs are at a critical juncture in their decarbonisation journey. We need faster deployment of solutions, broader support tools, and deeper engagement with SMEs to drive long-term commitments to sustainability.
“By adopting the recommendations, stakeholders can help SMEs become key players in achieving net zero goals.”
The report calls for stronger national frameworks and improved resources to address the unique challenges faced by SMEs across different regions.
The report was produced for the UK Energy Research Centre by researchers at Sheffield Hallam University, University of Oxford and the Open University.
Read the full report, Where Next for SMEs and Net Zero?
