​Top 3 misconceptions that SMEs have about reducing their carbon footprint

1. SMEs are not responsible for the majority of carbon emissions. 

While it is true that the larger firms are responsible for higher emissions, especially those involved in manufacturing, chemical processing and power generation activities, nobody is escaping the impacts of a changing climate. All businesses have a prime responsibility towards the environment. 

No matter whether you are a big, medium or small company, you can start analyzing the impact your company has on the environment and developing strategies for reducing your carbon footprint. The sooner all companies can start reducing their emissions, the higher chance that we can prevent the rise of temperature by about 2 degree celsius.

2. Going carbon neutral is a costly exercise, and SMEs cannot afford it.

Implementing the necessary changes may seem complex and costly. In many cases, it may mean radically transforming processes, choosing new providers, creating new guidelines, and investing a lot of resources. 

For example, sustainability reporting requires the different departments in the organization to understand their scope 1 and 2 emissions. Smaller and more cost-sensitive companies can start off with a basic exercise to benchmark their emissions by certain business functions. This can eventually be expanded to the entire organization over time.  


3. There is no benefit for SMEs to reduce their emissions.

Many organizations view emission reduction as a Corporate social responsibility (CSR) activity, with little or no business benefits to the companies. This is untrue. In fact, one way to reduce emissions is to achieve more efficiency in the operations of business. 

Moreover, most B2B SMEs providing services to the larger firms may not be aware that they are contributing to the scope 3 emissions of their customers. By reducing their own emissions, they are helping their customers with their Scope 3 emissions, which in turn will enhance relationships and business sustainability. 


An organization that takes effort to reduce emissions can also position the company in alignment with the objectives of the new green economy, where preferential funding is available.

In the next post, I will share the steps that SMEs can take to reduce their carbon footprint. At Valores Global, we are aiming to achieve 1,000,000 ton emission reduction by 2023 and one way is through helping our clients take steps to becoming carbon neutral. If you are an SME looking to kickstart your journey to becoming carbon neutral, feel free to reach out for a discussion.