SMEs: Navigating the path to sustainability

Today, SMEs across Europe are facing immense pressure to launch a credible sustainability story, backed by data. This pressure isn’t coming from IT departments but from supply chains, sales pipelines, and ESG demands from banks and customers alike.

Small and Medium-Sized Enterprises (SME) generate over 50% of EU GDP and are responsible for 63% of enterprise emissions. Most SMEs rely on internal funding for green improvements. Services and goods suppliers - who never expected to be at the sustainability table - are now being asked to provide traceability, emissions data, and lifecycle proof. Banks are integrating ESG criteria into credit decisions, making green finance access more difficult. EU frameworks like CSRD, the EU Taxonomy, and ESPR were not designed for SMEs, yet increasingly affect them.

In other words: Expectations are rising, but resources aren’t.

Josef Szerekes

Josef Szerekes

International Business Development Director

SMEs: Leading the way in sustainable supply chains

The EU’s shift toward a new way of doing sustainable business favours local, transparent, and circular value chains. The Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passport will accelerate the demand for verified machine-readable product data. SMEs that can’t provide it will be left out of critical supply chains. Those who can, will not just survive - they’ll lead.

Sustainability survival guide for SMEs

To move forward with one team, one budget, and one chance to prove your value, SMEs need to build traceability using tools they already have. There’s no need for a new platform to start. Existing ERP or PLM systems can be used to add fields for recycled content, material origin, and energy data. Identifying which suppliers can provide sustainability declarations and tracking internal improvements - such as energy efficiency, waste reduction, or design choices - are crucial steps. This is about surfacing what you already know. Visibility is more valuable than perfection.

Trying to tackle everything at once is unrealistic. SMEs should start focused by choosing one product and one supplier. Select one key product line and collaborate with a supplier who’s open to sharing impact data. Map the lifecycle, identify gaps, and make one measurable improvement - whether it’s in packaging, materials, or logistics. This is your proof of concept. Make it work, then scale.

Don’t wait for audits. Start using sustainability as part of your value proposition. Highlight product longevity, repairability, or reduced CO₂ impact. Reference material traceability or local sourcing. Show how your operations reduce risk or emissions in your customer’s scope 3 footprint. This isn’t greenwashing. It’s differentiating. If you don’t say it, it doesn’t count.

You don’t need 20 dashboards. Choose metrics you can actually maintain, such as the percentage of recycled material, energy or emissions per unit, supplier compliance rate, waste per unit produced, and the number of products with lifecycle data. Make these visible to leadership, just like financial KPIs.

For SMEs, improving the flow of value means flowing sustainability data through ERP and PLM, flowing impact metrics into offers, RFQs, and compliance docs, and flowing expectations back upstream to suppliers and across your own teams. You don’t need a new department. You need a digital sustainability thread.

Embedding sustainability in SME's

Many SMEs are asking the same thing: Do we need a dedicated team for all this? The reality is: probably not. But you do need to embed sustainability into the way your current team works. You already have the systems. The expertise. The product knowledge. What you need now is connection. Visibility. Flow. Because you’re not the bottleneck in this system. You might be the breakthrough.

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