Sustainability Meets Growth 2025

Introduction Industrial operations are central to the climate challenge, as direct and indirect emissions from industries accounted for 34% of global emissions in 2019.5 Manufacturing SMEs and mid-sized companies constitute a significant portion of these emissions, as research estimates show that SMEs alone represent roughly 40% of industrial pollution in Organisation of Economic Co-operation and Development (OECD) countries.6 (Note that for the purposes of this paper , SMEs are defined as companies with approximately €10 million–€50 million in annual turnover, and mid-sized companies as approximately €50 million–€1.5 billion [up to $1.75 billion] in annual turnover.)To better understand how SMEs and mid-sized companies fit into the overall industrial emissions picture, a review of Scope 1, Scope 2 and Scope 3 emissions distribution across industries is helpful. Figure 1 shows the estimated Scope 1, Scope 2 and Scope 3 emissions breakdown in a number of industries based on CDP (formerly the Carbon Disclosure Project) data.7 With the exception of the cement and concrete and transport services industries, all of the listed sectors have the majority of their emissions stemming from Scope 3.The important part SMEs and mid-sized companies play in industrial supply chains means their role is crucial in reducing emissions and the environmental footprint. Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers 5