MSMEs: Key To a Fairer, More Sustainable Future

June 2026

While we often assume that sustainability is linked to larger corporations, micro, small and medium-sized enterprises (MSMEs) are making great strides in reducing waste, improving their day-to-day practices and making more responsible business decisions. And with MSMEs accounting for 90% of businesses, almost 70% of employment and half of GDP worldwide (United Nations, n.d.), their collective impact is huge.

This year’s MSME Day on 27th June highlights the role MSMEs play in shaping a more sustainable economy.

SUSTAINABILITY IS A PRIORITY FOR MSMEs

Sustainability is now a priority for many MSMEs. This is largely driven by growing customer and client expectations when it comes to sustainable and ethical business practices. MSMEs are also having to navigate rising costs, resource constraints and wider economic and environmental uncertainty. Investing in sustainability to build resilience and stay competitive is important to ensuring long-term business success.

THE BUSINESS CASE FOR SUSTAINABILITY IN MSMEs

Sustainable business practices can help MSMEs gain both operational and commercial benefits. By using both energy and resources more efficiently, companies can reduce waste, streamline processes and improve procurement, bringing cost savings as well as environmental benefits. Smaller businesses are generally more agile, creating a perfect opportunity to instil more efficient and sustainable practices that can grow with the business.

Sustainability also creates new business opportunities. With growing customer expectations and an increased focus on ESG considerations by both investors and lenders (House of Commons Library, 2026), there is greater demand than ever for businesses to improve sustainability across their supply chains. This means that MSMEs with strong sustainability practices are in a better position to win contracts with larger organisations and join new supply chains.

As well as this, by instilling strong ESG values from the outset, MSMEs can position themselves as employers of choice. Workers increasingly value businesses with a clear purpose and responsible practices, so responsible businesses that treat the environment and their people fairly are likely to find it easier to attract and retain talented employees (British Business Bank).

HOW MSMEs ARE ALREADY CONTRIBUTING TO SUSTAINABILITY

Many MSMEs are already delivering sustainability outcomes; improving operational efficiency, strengthening responsible sourcing practices and supporting workplace wellbeing and inclusion help to show the collective contribution they’re making to sustainability progress.

PRACTICAL ESG STARTING POINTS FOR MSMEs

For many organisations, ESG for MSMEs begins with practical, small steps including:

Reviewing energy, waste and resource use to identify efficiency opportunities

Engaging employees in sustainability initiatives and improvement ideas

Understanding ESG expectations within the supply chain

Setting clear, achievable sustainability goals and tracking progress over time

In most cases, progress comes from improving visibility, making targeted improvements in the way things are run and embedding consistent sustainability practices over time. These steps provide a strong and credible foundation for organisations to market their sustainability achievements and targets to stakeholders with confidence.

SUPPORTING MSMEs ON THEIR ESG JOURNEY

At ESGmark®, we believe MSMEs are shaping the future of the sustainability movement. As businesses navigate an increasingly complex and fast-changing environment, effective ESG practices can help support resilience, innovation and sustainable growth.

We support MSMEs at every stage of their Environmental, Social and Governance journey, from understanding ESG in practical terms through to measuring impact, improving performance and credibly demonstrating their credentials. We do this through ESGmark® Certification (visit page), carbon footprint measurement (visit page), and sustainability support. Speak to our friendly team to get started today by contacting us. 

Sources

British Business Bank, What are the benefits of sustainability for smaller businesses? Available at: https://www.british-business-bank.co.uk/business-guidance/guidance-articles/sustainability/what-are-the-benefits-of-sustainability-for-smaller-businesses

House of Commons Library (2026) The impact of environmental, social and governance requirements on the defence industry . Available at: https://commonslibrary.parliament.uk/research-briefings/cdp-2026-0014/

United Nations (n.d.) Micro-, small and medium-sized enterprises day. Available at: https://www.un.org/en/observances/micro-small-medium-businesses-day