Can we achieve Net Zero without SMEs?
Putting the 2050 Net Zero goal aside
P/S: I’m keeping my writing as casual and conversational as possible. A lot of sustainability articles are filled with jargon, formal language and tbh sooooo boring.
I want people to actually read and understand these things. So, expect short sentences, simple words, and memes for good measure.
If you’ve found this useful, you can buy me a coffee ☕️
🤷🏻♀️ What is Net Zero?
Net zero means:
To reduce carbon emissions to the extent where
Only a small amount of residual emissions is left
Which can be offset by natural or man-made methods
Leaving zero carbon emissions in the atmosphere
In a simple mathematical equation:
Net Zero
= Minimal Carbon Emissions - Unavoidable Emissions (removed)
= 0
Net Zero by 2050
To keep global warming to no more than 1.5°C – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050.
Source: UN Net Zero Coalition
📊 Let’s start with a poll:
🤔 Where does power lie?
The common trap:
Governments think that the people are not ready for change.
Corporations see no incentive for action when it’s not mandated.
Individuals don’t think they have power at all.
And Small and Medium Enterprises (SMEs) often think of themselves like individuals.
😶🌫️ Whatever you think, you’re right.
As a small business, you might lack funds, have a smaller network and have less manpower because of your size.
BUT you can also be:
Agile
Flexible
Creative
Empathetic
Resourceful
from the same lack.
A change in mindset can make a whole lot of difference.
👀 Did you know, you’re the 90%?
According to the World Economic Forum, SMEs represent about 90% of all companies and hire up to 70% of the workforce.
In Singapore and London, that number goes up to 99%!
What counts as an SME?
🇸🇬 Singapore
A company with fewer than 200 employees; annual turnover of not more than $100 million.
🇬🇧 United Kingdom
A company with fewer than 250 employees; annual turnover not exceeding £36 million or annual balance sheet total not exceeding £18 million.
What does being the 90% mean?
Knowing this statistic led me to view SMEs in a new light. (It’s also what led me to start my consultancy.)
I truly don’t think we can ever get to net zero without SMEs.
There is so much potential in shaping how businesses are run, what work looks like, and what quality of life means with collective action. Especially so if you are the main decision maker for your business.
🫧 But first, let’s burst some bubbles
As much as it’s idealistic to think that individuals alone can solve climate change, it’s unrealistic to expect SMEs to meet this challenge without support.
The 2024 SME Climate Hub Survey found that business leaders are facing these challenges:
• Lack of policies
• Lack of government-sponsored benefits
• Insufficient funding
• Shortage of data about current emissions
• Lack of time
• Lack of skills and knowledge
Most businesses don’t know where to start even if they want to become more sustainable. So how do you leverage the fact that you make up 90% of the economy?
🌱 Be rooted in reality
What are some practical steps you can take as a small business owner?
First, identify what it is that you need the most, right now.
Emphasis on THE MOST and RIGHT NOW, because it’s easy to get overwhelmed, especially as an SME — resources are tight and everything needs doing.
So let’s take one step at a time.
🤑 So… is it funding? (Funding for what?)
📗 Is it a guide on how to do something?
⚙️ Is it a tool to measure something specific?
🧠 Is it coming up with a sustainability strategy?
💪🏻 Is it changing employee behaviours for your sustainability goals?
Which stage of the sustainability journey are you at? Different kinds of support are required at different stages of your journey. Knowing where you are and the kind of help you need is a fundamental step to success.
If you find this step difficult, I can help. Book a free consultation with me.
⭕️ Influencing the other 99.9%
Say, you’re one SME making an effort, and you are the 0.1%.
How do we activate the rest of the 99.9%? 🤔
Think laterally, above and below.
How can you influence your peers in the same industry? Can you lead by example, inspire them, share knowledge, and support them? Collaboration over competition goes a long way.
What about your suppliers, vendors and others you work with? Who do you buy from? Influence them as a buyer with greener requirements and considerations.
Lastly, leverage your clients' power. You might be one contractor doing “the right thing” but what about the other vendors your client is working with?
🌍 Everyone is needed
Governments, multi-national corporations, SMEs, and individuals have different motivators, priorities and pain points.
While SMEs might not be the ones to set the standard (👀 looking at you, governments and MNCs), it’s a long game and every effort counts.
It’s easy to stay put and wait for the other parties to take action first. But then, we’ll just stay in the same spot while the climate continues to change for the worse.
Despite having different considerations, these groups are interconnected. Policies influence business and individual behaviour. Consumer demand influences business decisions. Businesses can also shape culture. No one stands alone.
Ultimately, SMEs need to get on board with carbon reduction, regeneration and a better way to do business that’s kinder to our planet and people.
There is no net zero without SMEs.
📊 What do you think now?
Did your answer change? Did it stay the same? Why?
Share your thoughts in the comments, or reply to my newsletter if you don’t have a Substack account. We can continue the discussion there.
☕️ A little help?
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Or you can buy me a coffee 😊