Foreword Environmental sustainability has become a cornerstone of the global agenda, and the need for collective action has never been more urgent, as the opportunity to cap global warming at 1.5°C above pre-industrial levels is rapidly escaping. Governments and industry both play a crucial role in this transition, whether through policy or corporate sustainability efforts aimed at reducing carbon footprints. In parallel, rising geopolitical tensions and growing supply chain complexity highlight the urgent need to support and empower smaller businesses, whose resilience and adaptability are essential to economic growth and societal well-being. Small and medium-sized enterprises (SMEs) and mid-sized companies1 risk being left behind in this critical transition, not because they lack potential to benefit from it but because the current sustainability agenda often overlooks their unique realities. Unlike large corporations, SMEs and mid-sized manufacturers face distinct challenges: tighter cash flow that makes upfront investments daunting, less bargaining power to influence green procurement throughout supply chains and limited capacity to navigate complex reporting frameworks. Yet excluding these businesses from the sustainability transformation is not only inequitable but also economically and environmentally unsustainable given that they represent 90% of all businesses and account for nearly 70% of global jobs2 and 40% of industrial pollution across OECD countries.3 This raises a critical question: what are the most effective levers that SMEs and mid-sized companies can adopt to accelerate change? As humanity strives to address climate change, it is time to rethink traditional approaches and explore innovative, scalable solutions as well as collective actions in the public and the private sectors and for companies of all sizes to deliver a positive environmental impact while promoting economic growth. Although SMEs and mid-sized companies face distinct challenges, they also possess the agility and potential to drive meaningful change when equipped with the right tools and support. By aligning sustainability with business strategy – not as a cost but as a competitive advantage – they can contribute significantly to global climate goals while securing long-term economic growth. It is time to mobilize collective action in the public and private sectors to equip companies of all sizes in the manufacturing ecosystem with the knowledge, resources and roadmaps needed to thrive in a rapidly evolving world, ensuring that no one is left behind in the transition to a more sustainable future.Kiva Allgood Managing Director, World Economic ForumEsther Finidori Chief Sustainability Officer, Schneider Electric Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized ManufacturersJune 2025 Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers 3

Sustainability Meets Growth 2025