Important Facts of the News
- The report is jointly published by the International Chamber of Commerce (ICC) and Sage.
- This is the fifth edition of the report.
- The study draws on survey responses from 8,250 SMEs across 17 global markets.
- Interviews were also conducted with banks, investors, and international institutions.
- Small and medium-sized enterprises are eager to adopt sustainable practices but struggle to receive climate finance.
- Medium-sized firms in manufacturing and transport sectors are progressing faster but form a small minority.
- Digital and AI tools are highlighted as key enablers for easier reporting and access to green finance.
- The report calls for five urgent actions to accelerate SME access to sustainable finance.
- One of the proposed actions is the expansion of sustainability-linked finance options.
- The report aims to position COP30 as a turning point for green finance accessibility.
Small and medium-sized enterprises are central to climate action across the world, yet barriers to accessing green finance continue to limit their ability to expand sustainable operations. The latest joint report by the International Chamber of Commerce and Sage examines this persistent challenge and outlines practical measures that could strengthen the link between commitment and implementation.
Ambition Is Strong but Financing Gaps Remain
The study draws on extensive survey results from 8,250 SMEs spanning 17 different markets, supported by insights from financial institutions and global development organisations. The findings indicate that sustainability ambitions are rising across the SME sector. However, many businesses still find it difficult to secure funds necessary for upgrading machinery, improving efficiency, shifting to cleaner energy sources, or reducing emissions.
Some medium-sized firms, especially those in manufacturing and transport, are moving ahead more quickly by accessing green finance frameworks. Yet, they remain the minority, demonstrating that progress is uneven and limited in scope. The majority of small businesses continue to face high compliance costs, limited awareness of financing mechanisms, and complex reporting requirements.
Role of Digital and AI Tools
The report highlights that new digital solutions and AI-based platforms can reduce procedural hurdles. These tools can simplify sustainability reporting, increase data reliability, and help SMEs present stronger cases for funding. Streamlined reporting is considered essential to enabling lenders to evaluate SME climate performance efficiently and consistently.
Five Priority Actions for Accelerating Change
To bridge the gap between aspiration and action, the report proposes five urgent steps. These include harmonising sustainability reporting standards, expanding access to sustainability-linked finance products, improving financial literacy and advisory support, encouraging collaboration between financial institutions and SMEs, and leveraging technology to enhance transparency and trust.
A Critical Moment Ahead of COP30
As global climate negotiations move toward COP30, the report stresses the need to treat small businesses as key contributors to climate solutions. Making green finance more affordable and accessible could support a fair and inclusive transition while enabling large-scale emission reduction across supply chains.