We asked small businesses why they’re taking climate action

Our global survey reveals an important shift that bolsters the business case for climate action.

For small and medium-sized businesses (SMEs), staying competitive means adapting to change—and the world is changing faster than ever. That’s why every year, our team at the SME Climate Hub surveys the companies across our community to better understand how and why they’re taking climate action, and what barriers stand in the way.

This year’s survey, which includes perspectives of 471 SMEs across 53 countries, demonstrates that small businesses are moving faster on climate than ever before. And critically, it reveals an important shift in why that bolsters the business case for climate action.

Sustainability is no longer optional—it is a business necessity.

A key takeaway from our 2025 survey is that SMEs are taking steps to green their businesses not just because it’s the right thing to do, but because it’s good for business. Let’s unpack the data.

Respondents say that climate action helps them satisfy customers and grow their business by:

• Meeting customer expectations: 61% of SMEs report that customer demand drives their climate action—up from 40% last year.
• Gaining a competitive edge: 58% of SMEs see sustainability as a key differentiator, a 12-point increase from 2024.
• Attracting new customers: 51% of SMEs report gaining new business due to their efforts, up from 34% last year.

SMEs also recognise that climate action helps mitigate risk by:

• Preparing for climate impacts: 58% of SMEs say that climate action protects their business from climate-related threats, yet only 32% have begun defining specific risks.
• Anticipating regulatory shifts: 60% of SMEs cite compliance with current and future regulations as a motivator—rising significantly from 37% in 2024.

These results illustrate that SMEs aren’t waiting for action—they’re leading it. Customers are pushing SMEs toward sustainability, and businesses that don’t adapt risk losing out. At the same time, they require better financial and policy support to reach their full potential. (80% of respondents report little or no government support for climate action, and 64% say better government incentives—such as tax benefits and low-interest loans—would help them scale their climate efforts.)

SMEs share how climate action is shaping their business.

While the stats from our survey are compelling, hearing real-world examples from SMEs brings the data to life. We asked our SME community—across industries and around the world—to elaborate on their survey responses. Here’s what SMEs have to say in their own words: 

• “Climate risks, such as supply chain disruptions, material shortages, and weather events, have a direct impact on our business decisions. We’ve seen how changing climate patterns affect the availability of materials and increase logistical challenges, making it essential to build resilience into our operations.”—Segura Ferretería y Cerrajería,  Colombia

• “Being transparent has positioned us as a leader in sustainable real estate development and management, attracting collaborations and media attention.” —OXO, Indonesia 

• “We have found that many businesses are daunted by the idea of calculating their carbon footprint. However, when we break it down, and they see that they can measure and reduce Scope 1 and Scope 2 emissions in the short term, Scope 3 then becomes more manageable.” —Sustainable Wedding Alliance, UK

• “Sustainability isn’t just a goal for us—it’s the foundation of how we operate and grow. Committing to the SME Climate Hub has provided us with the tools, knowledge, and resources to take meaningful action toward reducing our carbon footprint.” —Pinpoint Tours, South Africa

Responses like these illustrate that for SMEs, climate action is as much an opportunity as it is a necessity, and how the SME Climate Hub can help along the way. 

The SME Climate Hub is filling a critical gap. 

We know time and resources are limited. As we push for better policies and incentives, the SME Climate Hub fills a critical gap by equipping businesses with the tools and knowledge to take steps on their journey to net zero. Here are some of the key resources available:

• Small Business Carbon Calculator: Our newly launched, interactive calculator helps SMEs measure and manage their emissions—even with incomplete or imperfect data.
• Action Space: Explore detailed, practical guidance on the core topics SMEs need to consider to start and advance their climate action journey.
• Case Studies: Get inspired by real-world examples of SMEs successfully taking climate action and turning challenges into opportunities.

We are so proud of our more than 9,000 SME signatories. Our community is integrating sustainability into their business plans because it fuels growth and strengthens resilience. In so doing they prove that sustainability and profitability go hand in hand. We’ll continue to be there to support SMEs on their climate action journeys, scaling solutions and making a cleaner, more prosperous world for all.

Explore our 2025 SME Climate Hub Survey to learn more.