COTD: Regulatory compliance drives 47% of SMEs to decarbonise

Client requirements and cost savings are also pushing SMEs to go green.

Despite small- and medium-sized enterprises (SMEs) lagging behind in decarbonisation, with only 33% making progress compared to 80% of non-SMEs, 47% of SMEs are motivated to drive decarbonisation due to regulatory compliance, according to Bain & Company.

For some SMEs, the lag is due to the lack of resources for dedicating full-time staff to decarbonisation efforts, especially when it is not mandated by the government.

Client requirements are also pushing SMEs to decarbonise (35%), followed by cost savings (32%), and growing market share in the green space (21%).

Meanwhile, employee retention and revenue growth have little impact on pushing SMEs to decarbonise, with only 4% and 12% driven by these factors, respectively.

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