Sage report shows record U.S. SME sustainability ambition, but finance and reporting bottlenecks risk leaving millions of small businesses behind

ATLANTA (Dec. 3, 2025) – Sage, the leader in accounting, financial, HR and payroll technology for small and medium-sized enterprises (SMEs), has launched the global SME Sustainable Finance Stocktake: Turning Ambition into Action. The global report reveals record levels of sustainability ambition, including among U.S. SMEs, but warns that bottlenecks in finance and reporting risk slowing progress and leaving many SMEs behind.

Produced in partnership with the International Chamber of Commerce (ICC), the report – which surveyed 8,250 SMEs across 17 markets, including the U.S. –  reaffirms the “virtuous circle” between sustainability reporting, green finance, and climate action that Sage highlighted in its COP29 2024 report: SMEs that can measure and report their impact are more likely to unlock the capital needed to invest in further sustainability improvements.

Global findings show rising ambition but persistent barriers

The SME Sustainable Finance Stocktake found that:

• Sustainability ambition and action continue to rise. Seventy percent say sustainability is now central or important to their business, and 36% also have a sustainability policy or plan, which are increases of 3% and 5% respectively from last year. The key areas SMEs are taking action in are energy efficiency (58%); waste (53%) and renewables (32%).
• But not enough SMEs are able to report on their impact. 32% of SMEs reported having any kind of sustainability reporting infrastructure in place, with only 8% of SMEs investing in formal reporting, same as last year. 62% of the surveyed SMEs cited complexity as a major roadblock to formal sustainability reporting, with lack of quality data or reporting tools also being key factors holding them back.
• Lack of reporting prevents access to green finance. Sage’s 2024 report found that 73% banks want to offer green finance to SMEs – highlighting an untapped $789bn available – but need emissions data to measure returns. This year’s data shows that the number of SMEs leveraging this opportunity remains low – only 2.8% report having applied for green finance in the past year, and fewer than one in 200 have successfully secured it. However, on the positive side, 27% are interested in applying for it, up from 21% in 2023.
• AI and digital tools are key enablers for SMEs on the path to net-zero. SMEs using AI-powered accounting or carbon-tracking tools are 1.6 times more likely to secure green finance and 2.4 times more likely to have formal sustainability reporting than those without, demonstrating that digital tools can make sustainability and business growth more accessible and practical for small businesses.

U.S. findings reflect similar ambitions and significant gaps

According to the U.S. findings:

• 71% of U.S. SMEs say sustainability is central or important to their business, closely aligning with global averages.
• 34% have a sustainability plan in place, slightly below peers in Europe.
• Only 12% have applied for green finance, and just 4% have been successful, underscoring the difficulty SMEs face in accessing capital to support climate initiatives.
• Just 8% have mature, formal sustainability reporting models.
• 38% cite reporting complexity as a major barrier to climate action, and 32% say high upfront costs remain a primary obstacle.
• Digital adoption is rising — 44% use digital accounting systems, and 16% use AI-driven carbon-tracking tools — but integration between financial and environmental data is still uncommon.

Accelerating access to sustainable finance

The report makes clear that U.S. SMEs have strong intent, but uncertainty, complexity, and lack of reporting infrastructure make it harder for them to translate ambition into action.

The report sets out five actions to accelerate SME sustainable finance:

1. Simplify sustainability reporting - Develop clear, consistent and proportionate reporting standards tailored to SMEs, aligned with international frameworks such as ISSB and Europe’s VSME model.
2. Accelerate digital and AI adoption - Expand access to affordable tools that automate reporting by connecting accounting, e-invoicing and emissions data.
3. Strengthen support and incentives - Introduce grants, tax credits and training programmes to help SMEs measure, report and act on their sustainability goals.
4. Streamline data sharing - Enable SMEs to “report once, use many times” by harmonising information requests across banks, buyers and regulators.
5. Tailor finance products for SMEs - Scale up sustainability-linked loans, green leasing and blended finance designed for smaller projects and adaptation efforts.

Elisa Moscolin, Executive Vice President of Sustainability and Foundation at Sage Group plc, said: “Small and medium-sized enterprises are on the frontline of climate action, but too many are still locked out of the finance they need to grow sustainably. The barrier isn’t intent; it’s access to the tools that can help them scale their businesses while building resilience. By using AI and digital accounting tools, SMEs can report faster, build lender trust and unlock finance at scale. That’s the path from ambition to action.”

John W.H. Denton AO, Secretary General, International Chamber of Commerce, said: “SMEs are critical to the world’s climate transition, yet the system still isn’t built for them. We need simple, proportionate reporting frameworks and practical pathways to sustainable finance so that ambition turns into impact. This report shows how to make that happen.”

Read and download the full SME Sustainable Finance Stocktake report. Read more about Sage’s sustainability efforts, including its Sustainability and Society strategy.

Notes to editors  

Methodology: 

This report is based on a global online survey, conducted since COP27, alongside business founders, owners, and senior managers in decision-making roles related to sustainability, finance, or operations. Data collection was carried out via an online questionnaire, targeting businesses with fewer than 250 employees. The survey was conducted in Azerbaijan, UK, US, Canada, Australia, Germany, France, Spain, Poland, Brazil, South Africa, Thailand, Kenya, Morocco, Senegal, Ecuador and Indonesia. 

The survey gathered responses from a total sample of 8,250 SMEs across these markets. A further deep dive was conducted with a sub-sample of 1,000 SMEs, specifically targeting businesses already engaged in environmental reporting. This sample was also increased to include medium-sized enterprises (up to 1,000 employees) for more comprehensive insights.  

About Sage 

Sage exists to knock down barriers so everyone can thrive, starting with the millions of small- and mid-sized businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology, and experience to tackle digital inequality, economic inequality and the climate crisis. Learn more at www.sage.com/en-us/

About ICC

The International Chamber of Commerce (ICC) is the institutional representative of more than 45 million companies in over 170 countries. ICC’s core mission is to make business work for everyone, every day, everywhere. Through a unique mix of advocacy, solutions, and standard setting, ICC promotes international trade, responsible business conduct, and a global approach to regulation, in addition to providing market-leading dispute resolution services. ICC members include many of the world’s leading companies, SMEs, business associations, and local chambers of commerce.