At the COP30 climate conference, the COP29 Climate High-Level Champion formally launched the Climate-Proofing SMEs campaign, an initiative designed to increase meaningful climate action across the small and medium-sized enterprise (SME) sector.
Purpose of the Climate-Proofing SMEs campaign
A central component of the campaign was the release of an open letter to governments globally, advocating for consistent policy settings that enable and support SME climate action at a local, regional and international level.
The letter sets out four priority policy areas:
- Recognition of SMEs as a distinct and essential contributor to climate action
- Development and promotion of a clear commercial rationale for SME climate initiatives
- Provision of simplified pathways and centralised guidance to assist SMEs with climate mitigation and adaptation
- Expansion of accessible and appropriately structured green finance for SMEs
Although SMEs represent approximately 90% of businesses worldwide, they have traditionally been excluded from structured climate policy and emissions reduction frameworks.
What this means for SME owners
SME owners should anticipate increasing expectations from customers, financiers and larger counterparties to measure, disclose and actively reduce carbon emissions. These expectations are particularly pronounced for businesses operating within international supply chains, where emissions transparency is becoming a prerequisite for ongoing commercial engagement.
Actions SMEs can take now:
- Track resource usage and establish a benchmark: Monitoring energy, water and waste usage allows SMEs to identify primary emission drivers within their operations. Establishing a benchmark enables progress to be measured over time and supports informed decision-making regarding cost-saving efficiency initiatives.
- Progressively reduce operational emissions: Where practical, SMEs should consider transitioning to cleaner, more efficient technologies. This may include renewable energy sourcing, equipment upgrades or supply chain optimisation. Even modest operational improvements can deliver measurable emissions reductions and cost efficiencies.
- Assess and manage supply chain climate exposure: Businesses should review supplier and customer relationships to better understand climate-related risks and dependencies. Engaging with suppliers that demonstrate credible sustainability practices is increasingly important, as is maintaining transparent disclosures to customers.
- Utilise green finance and incentives: A range of grants, incentives and concessional finance options are available to support SME climate initiatives. These funding mechanisms can assist in offsetting the upfront costs of emissions reduction and adaptation measures. The SME Climate Hub provides practical tools and guidance for businesses exploring these options.
Accurate measurement of emissions and carbon footprints underpins effective environmental, social and governance (ESG) reporting. Well-structured ESG reporting supports compliance with evolving regulatory standards, enhances stakeholder confidence and positions the business for long-term sustainability.
Our team can assist with the implementation or enhancement of ESG reporting frameworks tailored to your business.
