Stage 1 Building the foundations To establish an environmental sustainability programme effectively, manufacturers need to assess their starting point and build an understanding of sustainability principles and methodologies. In an ideal scenario, companies would train dedicated staff in the Greenhouse Gas (GHG) Protocol, the leading framework for corporate carbon accounting. In reality, limited time and resources often prevent smaller firms from forming full sustainability teams. Despite these challenges, such companies can designate a “sustainability lead” within their operations teams to receive targeted training on key environmental metrics and the basics of Scope 1, 2 and 3 emissions. Examples of tailored training platforms for SMEs and mid-sized companies BOX 1 Several initiatives have emerged to support smaller businesses in building foundational knowledge and an understanding of environmental performance metrics. Here are some examples: –The Green Industry Platform’s SME Support Centre13 provides smaller firms and supporting organizations with easy access to knowledge to enhance material efficiency, energy and waste management and water saving and implement targeted measures towards achieving a sustainable and resource-efficient business. –The SME Climate Hub14 offers free, accessible training modules on measuring and reducing emissions, including practical guidance on Scope 1, 2 and 3 emissions. –The United Nations Global Compact SPARK Programme15 empowers smaller businesses through practical sustainability training and peer learning, helping them integrate responsible business practices into operations and scale their impact in environmental, social and governance areas. Once a baseline understanding is established, sustainability leads can assess the company’s value chain to identify the most important opportunities for improving eco-efficiency. Are operations energy-intensive, and if so, have potential efficiency improvements been fully explored? Do the materials used in products constitute a significant proportion of operating expenses? When was the last time product-design teams were tasked with optimizing the use of costly materials in the end product? Such questions help prioritize areas for deeper analysis.In addition, internal sustainability goals and strategies should be set at the corporate level. For example, if a value chain review reveals fresh-water usage as a vital area for improvement, a bold yet achievable goal might be to improve water efficiency per unit produced by 15% by 2030. This would reduce the environmental footprint while increasing profit margins. Companies should not spend an inordinate amount of time to determine the “perfect” target, as goals may evolve with deeper insights and evolving processes. Targets should be made based on logic and experience: setting targets is a flexible process, instead of a fixed milestone. Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers 13

Sustainability Meets Growth 2025