Advancing the Green Transition of SMEs: Insights for SME development agencies to support sustainability practices and reporting

This report highlights the importance of ensuring and facilitating the participation of SMEs in driving the green transition. Policymakers and government agencies with a mandate to support SME development can take various policy measures, such as regulatory, financial and awareness-raising approaches, to support SMEs on their journey towards the green transition. One dimension of this support includes the promotion of environmental, social and governance (ESG) practices and reporting.

It also highlights the challenges faced by SMEs; limited understanding of the relevance of ESG concepts for their businesses, obstacles to accessing practical tools and or lack of financing, among others.