16 November 2024: Sage and ICC launched the report at the United Nations global climate summit COP29, urging global decision-makers to bridge the gap between SMEs’ growing sustainability ambitions and their ability to act.
The report highlights that while 86% of SMEs say that sustainability is important to their business, only 9.1% formally report on their impact, citing complex reporting requirements as a major roadblock (74%).
The data revealed a “virtuous circle” between sustainability reporting, sustainable finance and climate action. SMEs that report on their impact are more likely to secure funding to become more sustainable, which in turn, helps them take further steps towards net-zero.
Enhanced reporting would also help financial institutions who say data challenges are a huge barrier to offering green loans (84%). Currently, however, only 1.2% of SMEs are leveraging this virtuous circle to grow sustainably.