{"id":70451,"date":"2022-12-02T12:12:59","date_gmt":"2022-12-02T10:12:59","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=70451"},"modified":"2026-01-29T14:16:50","modified_gmt":"2026-01-29T12:16:50","slug":"cop-27-environmental-impact-study","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/cop-27-environmental-impact-study\/","title":{"rendered":"To effectively tackle the climate crisis, SMEs need more support from government and big business [research]"},"content":{"rendered":"
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\n\t\t\t\t\t\tTo effectively tackle the climate crisis, SMEs need more support from government and big business [research]\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tTarryn Giebelmann<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Over three-quarters, (76%) of small and medium-sized businesses (SMEs) in South Africa believe that sustainability is important, but many face challenges in understanding and reducing their climate impact.<\/p>\n\n\n\n

This was one of the key findings of the SME Climate Impact Report<\/em>, which interviewed over 2,000 South African SMEs (as well as 2,000 SMEs in the UK) to get a deeper understanding of how they view sustainability and the measures they’re taking to become more sustainable.<\/p>\n\n\n\n

The SME Climate Impact Report, commission<\/em>ed by Sage in partnership with Oxford Economics<\/a> and the International Chamber of Commerce (ICC),<\/a> was released at the 27th Conference of the Parties of the UNFCCC (COP27) It is a call to action for government and policymakers to help South African SMEs become more sustainable, given the influential role they play in the economy.<\/p>\n\n\n\n

The SME Climate Impact<\/em> study models the climate impact of SMEs using the Oxford Economics Global Sustainability Model<\/a>.<\/p>\n\n\n\n

A little becomes a lot<\/h2>\n\n\n\n

In South Africa, SMEs directly contribute R2.1 trillion, or 40%, of the National Gross Domestic Product (GDP) and account for 6.2 million direct jobs or 46% of direct employment. The economic footprint generated through their indirect supply chain and induced consumer spending contributions amounts to R4 trillion in GDP value; their total employment footprint in South Africa is over 10.2 million people. This means South African SMEs’ total economic footprint totalled just over three-quarters of gross-value added and employment.<\/p>\n\n\n\n

The study confirms the crucial role that SMEs play in the country’s economy and that, collectively, they have a significant climate impact and an instrumental role to play in reaching the government’s target of net zero by 2050<\/a>.<\/p>\n\n\n\n

The report shows that South African SMEs’ Scope 1 greenhouse gas (GHG) emissions\u2014those created from sources they own or control\u2014were an estimated 61 million tonnes of CO2e in 2021\u2014 which is 14% of South Africa\u2019s total Scope 1 non-household emissions. SMEs’ footprint totalled 29% of non-household emissions in South Africa when GHGs generated in their supply chains is considered.<\/p>\n\n\n\n

But the research highlighted that SMEs need a lot more support from governments and big businesses to become more sustainable.<\/p>\n\n\n\n

Strong sense of purpose among South African SMEs<\/h2>\n\n\n\n

SMEs in South Africa understand the urgency of the climate crisis, want to become more sustainable, and are eager to play their part in addressing climate impact.<\/p>\n\n\n\n

According to the survey, 66% of SMEs have, or plan to, develop policies related to their environmental, social, or sustainability impact. In fact, 26% rate sustainability as a top priority, and 16% say it’s central to what they do.<\/p>\n\n\n\n

Good intentions<\/h2>\n\n\n\n

Although they know it’s the right thing to do\u2014and they want<\/em> to do the right thing\u201490% of SMEs face barriers to reducing their impact.<\/del><\/p>\n\n\n\n

When it comes to moving the needle on climate action, 61% of SMEs say managing their climate impact has become harder in the past six months.<\/p>\n\n\n\n

They highlight several challenges, including:<\/p>\n\n\n\n