The ecological transition is no longer seen merely as a regulatory obligation. For most European small and medium-sized enterprises (SMEs), it has become a strategic driver of growth and competitiveness. According to the Climate Transition Barometer, 85% of European SMEs now view decarbonization as a growth opportunity - up from 67% last year. The shift is even more relevant in the agri-food sector, where companies considering sustainability a strategic priority jumped from 50% to 80% in just one year.
The survey, based on 700 SMEs in France, Germany, Italy, the Benelux, and the UK, shows that sustainability has moved well beyond simple compliance. For many businesses, decarbonization now shapes operations, governance strategies, and investment choices.
This change signals a growing climate maturity, driven both by a new sense of responsibility and by market dynamics that increasingly reward companies integrating environmental criteria into their strategies.
The role of SMEs in driving the transition
When large companies calculate their environmental footprint, they must go beyond direct emissions (Scope 1) and purchased energy (Scope 2) to include supply chain emissions (Scope 3). Here, SMEs are critical: about 60% of Scope 3 emissions originate from their production activities.
In practice, an agri-food multinational is responsible not only for its own factory emissions but also for those of suppliers who grow, process, package, and transport goods. This makes SMEs essential to the decarbonization of value chains. Without their contribution, large corporations cannot meet EU climate targets.
Rising investments in decarbonization
The report shows that 48% of SMEs have already invested in decarbonization projects, while 32% now have a structured plan - a share that has tripled since 2023. Among companies yet to act, 65% intend to measure their carbon footprint within the next three years. In the agri-food sector, the implications are clear: suppliers that fail to begin this transition risk being cut out of distribution networks and losing access to large buyers, who are increasingly prioritizing sustainable partners.
What drives SMEs to decarbonize?
The push toward decarbonization is fueled mainly by customer demand and environmental regulation. 63% of companies cite commercial appeal - especially in B2B markets - as the main incentive to act. Already, 29% report a competitive advantage, and 53% expect sustainability to become a decisive differentiator in the years ahead.
In the food sector, the transition is tied to growing demand for transparency, traceability, and lower-impact products - from both end consumers and large-scale retailers. For agri-food businesses, sustainability also brings easier access to international markets and a stronger reputation with distributors and investors worldwide.
Challenges and barriers
While SMEs are stepping up their commitment, the Climate Transition Barometer shows that success depends on having the right tools. On the financial side, 62% cite limited funding as the main barrier to green investment. Where investors and private equity are involved, results are evident: supported SMEs show a 13% higher commitment to transition, confirming that targeted capital and governance expertise accelerate structured environmental strategies.
Policy frameworks also play a significant role. For 70% of SMEs, environmental regulations are a real driver of change. Yet complexity remains an obstacle: many report that unclear or overly complex rules make it harder to turn sustainability goals into effective operational plans.
