Leveraging Resource Efficiency: SMEs as Catalysts for Green Market Growth

The pressing realities of climate change and environmental degradation have compelled businesses across the globe to adopt more sustainable practices. At the forefront of this shift are small and medium-sized enterprises (SMEs), which, despite their relatively modest individual footprints, collectively account for a significant proportion of economic and environmental activity within the European Union. The “Flash Eurobarometer 549: SMEs, Resource Efficiency and Green Markets” report, conducted in 2024, sheds light on the critical role SMEs play in advancing sustainability through resource efficiency and participation in green markets.

The Economic and Environmental Significance of SMEs

Europe’s 25.8 million SMEs are not only the backbone of the EU economy, employing 88.7 million people, but they also represent a considerable cumulative environmental impact. While the average SME emits 67 tonnes of CO2 annually, their collective emissions constitute 63% of all company-related emissions in the EU. This underscores the necessity of mobilising SMEs to drive the transition to a resource-efficient, climate-neutral economy, as envisioned by the European Green Deal and the European SME Strategy.

The Flash Eurobarometer survey, commissioned by the European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship, and SMEs, highlights the actions SMEs are undertaking, the barriers they face, and the opportunities available to expand their participation in the green economy. Conducted through 13,124 interviews with EU SMEs, the report provides comprehensive insights into current trends and future potentials.

Resource Efficiency: Current Practices and Aspirations

Actions Undertaken

The report reveals that 93% of EU SMEs have implemented at least one resource efficiency measure. Among the most prevalent actions are minimising waste and saving energy, both adopted by 66% of SMEs. Additional measures include saving materials (57%), saving water (49%), and recycling within the company (48%). Notably, the adoption of renewable energy sources has more than doubled since 2015, with 24% of SMEs now incorporating this practice.

Large companies tend to surpass SMEs in resource efficiency initiatives, yet SMEs have shown consistent growth in adopting these measures. Encouragingly, 42% of SMEs are currently implementing five or more resource efficiency actions, signalling a deepening commitment to sustainability.

Future Plans

Looking ahead, 81% of SMEs intend to implement at least one additional resource efficiency action in the next two years. Key planned measures include further energy savings (58%), the adoption of renewable energy sources (34%), and waste reduction (53%). These plans align with the EU’s broader goals of fostering a climate-neutral, resource-efficient economy.

Barriers to Sustainability

Despite their progress, SMEs face significant challenges in advancing their sustainability agendas. Key barriers include:

• Administrative and Legal Complexities 35% of SMEs cite complex procedures as a deterrent.
• Cost Implications 28% note that resource efficiency measures increase production costs.
• Lack of External Support While 61% rely on internal financial resources and 50% on internal expertise, only 23% utilise external support.

Such obstacles underscore the need for targeted assistance to enable SMEs to overcome these hurdles and scale their sustainability efforts.

Participation in Green Markets

The report also explores the role of SMEs in green markets, with 32% offering green products or services and 12% planning to do so within two years. These green offerings contribute significantly to turnover for many SMEs, although the extent varies widely. For example, 24% of SMEs report that green products account for over 50% of their annual turnover, whereas 44% derive less than 10% of their revenue from such offerings.

Aligning with Digital4Sustainability

The findings of the Flash Eurobarometer 549 report resonate strongly with the mission of Digital4Sustainability, which seeks to empower SMEs through the twin transitions of digitalisation and sustainability. By enabling SMEs to harness the potential of digital technologies, Digital4Sustainability can address several challenges highlighted in the report:

1. Simplifying Administrative Processes Digital tools can streamline compliance and reporting requirements, reducing administrative burdens for SMEs pursuing resource efficiency.
2. Enhancing Access to External Support Digital platforms can connect SMEs with financial incentives, technical expertise, and peer networks to bolster their green initiatives.
3. Facilitating Market Expansion By leveraging e-commerce and digital marketing, SMEs can reach broader audiences for their green products and services.
4. Promoting Green Innovation Digital4Sustainability champions the integration of digital solutions to enable innovations such as energy-efficient production techniques, smart supply chain management, and data-driven decision-making.

By addressing these areas, Digital4Sustainability not only aligns with the EU’s sustainability goals but also empowers SMEs to lead the transition to a greener economy.

SMEs are pivotal to achieving Europe’s sustainability ambitions. While their cumulative environmental impact is significant, so too is their potential to drive resource efficiency and expand green markets. By overcoming barriers and embracing opportunities, SMEs can serve as catalysts for a more sustainable, climate-neutral future.

Digital4Sustainability stands ready to support SMEs on this journey, leveraging . digital innovation to accelerate environmental and social sustainability. Together, we can equip the European workforce with the skills needed to achieve a clean, just and competitive transition.to ensure Europe’s prosperity.

Source: Flash Eurobarometer 549 – SMEs, Resource Efficiency and Green Markets (fieldwork: 3 to 28 June 2024, 13,124 telephone interviews with EU SMEs and 917 telephone interviews with large companies in the 27 EU Member States)