Why Governments Need SME's to Decarbonise for Net Zero targets
What difference does our small company make!
Though its individual contribution to carbon emissions are relatively small, collectively SME's constitute a significant portion of emissions, and their involvement is essential for realizing meaningful progress towards carbon neutrality.
The simple truth is that SME's don't decarbonise the world will not meet it's Net Zero targets.
Understanding Corporate Carbon Footprints
Even large enterprise organizations must acknowledge the vital role SMEs play in emissions reduction. While these corporations may have extensive operations, a significant portion of their carbon footprint often stems from their supply chain. Unless their suppliers prioritize decarbonization, achieving Net Zero remains an elusive goal.
Statistics on Corporate Size and Carbon Footprints
To grasp the significance of SMEs in emissions reduction, consider the following statistics:
- SMEs comprise a vast majority of businesses worldwide, accounting for over 90% of all enterprises.
- While individual SMEs may have modest carbon footprints compared to large corporations, collectively, their emissions can be substantial due to their sheer numbers.
- According to research, SMEs in some industries, such as manufacturing and construction, can contribute up to 60% of the sector's total emissions, underscoring their significance in emission reduction efforts.
- The supply chains of large corporations often involve numerous SMEs, amplifying their impact on overall emissions.
Why SMEs Can make more of an impact that enterprise companies!
1. Cumulative Impact: Although SMEs may individually emit less carbon than large corporations, their collective emissions can rival or even surpass those of larger entities. Ignoring their role in emissions reduction would be a critical oversight.
2. Scalability: SMEs represent a diverse array of industries and sectors, making their involvement crucial for implementing emissions reduction strategies across various fields. Their agility and adaptability allow for the rapid deployment of innovative solutions.
3. Supply Chain Influence: Large corporations heavily rely on SMEs within their supply chains. Encouraging SMEs to adopt sustainable practices not only reduces emissions directly but also indirectly contributes to the emissions reduction goals of larger entities.
4. Community Impact: SMEs are often deeply embedded within local communities, making them influential stakeholders in regional sustainability initiatives. By championing emissions reduction efforts, SMEs can inspire broader societal change.
5. Innovation Catalysts: SMEs are hotbeds of innovation, continually developing and adopting new technologies and practices. Supporting SMEs in their journey towards sustainability can drive innovation and accelerate the transition to a low-carbon economy.
In Conclusion
SMEs may individually emit relatively small amounts of carbon compared to large corporations. However, their collective impact on emissions cannot be understated. Achieving Net Zero requires the active participation of SMEs, as their involvement is essential for driving systemic change across industries and supply chains. Recognizing and empowering SMEs in emissions reduction efforts is paramount for building a sustainable future for generations to come.