Sustainability Meets Growth 2025

Executive summary Small and medium-sized enterprises (SMEs) and mid-sized companies form the backbone of the global economy, accounting for approximately 70% of employment and 90% of businesses worldwide.4 However, despite their collective impact, they often face unique challenges in adopting sustainability practices, ranging from limited resources to a lack of knowledge and expertise. This has resulted in a slower integration of sustainability practices among SMEs and mid-sized companies in the manufacturing and supply chain ecosystem compared to large multinational corporations (MNCs), which have started to embrace the benefits and potential of sustainability in areas such as low-carbon product innovation, circular supply chain models, green procurement and enhanced sustainability reporting to meet investor and regulatory expectations. Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers challenges the mindset that sustainability is merely a cost by reframing it as an inclusive opportunity, aligned with the realities and needs of SMEs and mid-sized companies. To drive an inclusive and scalable sustainability transformation of industries, the World Economic Forum, in collaboration with Schneider Electric, has launched the SME Sustainability Accelerator, building on the meaningful impact of the Industry Net Zero Accelerator initiative and shared expertise developed within its scope, and the work of the Forum’s global Chief Operating, Supply Chain & Procurement Officers Community on supporting the digitalization of SMEs for supply chain resilience, sustainability and competitiveness. The SME Sustainability Accelerator aims to strengthen the business case for sustainability among SMEs and mid-sized companies, equip them with actionable roadmaps and mobilize targeted support from both public and private sectors. By mapping the current landscape, identifying important barriers and enablers and articulating the needs of this community, it enables smaller manufacturers to embed sustainability as a core driver of long-term growth and competitiveness. Based on insights from a global survey of 60 manufacturing SMEs and mid-sized companies from diverse geographical areas and sectors, along with consultations with industry and policy experts, this paper introduces a roadmap with five key stages for incorporating environmental sustainability into a company’s strategy and implementation, tailored for the SME and mid-sized manufacturer community. It also includes a summary of key support mechanisms and existing resources that can best enable them to be successful in this transition. Industries stand at a pivotal moment where sustainability is not just a choice but rather a strategic imperative for long-term competitiveness. Manufacturing SMEs and mid-sized companies can emerge as powerful drivers of a more sustainable and resilient global economy. With tailored support and applying an actionable roadmap, they have the potential to lead the transformation towards a sustainable future for manufacturing.Sustainability is more than just a responsibility – this paper looks at how SMEs and mid-sized manufacturers can turn it into a strategic growth opportunity with the right support and a clear roadmap. Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers 4