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SMEs go green for growth – but want cash support

Small businesses are accelerating climate action in response to customer demand

Small businesses are stepping up on climate action to stay competitive and future-proof their operations – but most say they’re doing it without enough help.

That’s according to the latest SME Climate Hub Survey, which shows customer pressure, compliance rules and business resilience are driving a surge in climate ambition.

More than half of SMEs say going green wins them new customers, while 61% now act on climate to meet client expectations – up from 40% last year.

But it’s not just about sales. Nearly 60% say climate action helps shield them from risks like extreme weather and supply chain shocks.

And 60% now flag regulation as a key reason for action, up sharply from 37% in 2024.

Despite the progress, money remains a sticking point.

Four in five SMEs say there’s little or no government support and only 4% rate existing help as strong.

Most want better incentives – think tax breaks and cheap loans – to keep the momentum going.

The survey polled 471 firms across 53 countries, with the UK making up over half the responses.

Pamela Jouven, Director, SME Climate Hub said: “SMEs aren’t waiting for action—they’re leading it. The momentum is there but SMEs need better financial and policy support to reach their full potential.”

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