Smaller firms step up climate change efforts

A growing number of small and medium-sized firms are taking action on climate change driven by factors including demand from customers.

The SME Climate Hub’s latest survey found that 61% of firms are taking climate action to meet customer expectations, up from 40% in 2024.

More than half said it helps differentiate their business from competitors, 12 points higher than last year. Financial resilience and regulatory compliance are also key motivators.

Pamela Jouven, Director of the SME Climate Hub, said: “SMEs aren’t waiting for action—they’re leading it. Small businesses are integrating sustainability into their business plans because it fuels growth, strengthens resilience, and helps them stay ahead of evolving regulations and supply chain requirements.”