CDP has published an analysis of disclosures from almost 11,000 small and medium-sized enterprises, finding broad progress in environmental governance and preparation but limited implementation. More than 95% advanced against at least one key environmental indicator and nearly 40% met most or all basic indicators assessed, yet only 20% had emissions reduction targets and 32% had reduction initiatives in place. Transition planning is expected to expand, with 63% of disclosing SMEs either having a plan or expecting to establish one within two years, although only 15% currently had one. CDP called for buyers, financial institutions and policymakers to improve access to finance, incentives and practical support, citing earlier research with HSBC showing that suppliers were 52% more likely to reduce annual emissions when buyers offered financial incentives rather than training alone. Performance varied across markets and sectors. SMEs in Spain, France and Sweden recorded the strongest progress, while those in Singapore and the United States lagged. Manufacturing, materials, transportation services and power generation performed relatively strongly, whereas retail and services showed less progress.
CDP finds SME environmental planning outpaces emissions targets and action
CDP found that environmental preparation among almost 11,000 disclosing SMEs has yet to translate into widespread action. While 63% have or expect to establish a transition plan within two years, only 15% currently have one, 20% have emissions reduction targets and 32% have reduction initiatives. Spain, France and Sweden led the assessed markets, while Singapore and the United States lagged.