---
title: "New CDP Analysis Finds More Than 95% of Disclosing SMEs Are Making Progress on Environmental Action"
description: "Almost two-thirds (63%) of SMEs either have a transition plan or expect to have one within two years, although just 15% currently have one in place."
locale: en
canonical: https://www.cdp.net/en/press-releases/new-cdp-analysis-finds-more-than-95-of-disclosing-smes-are-making-progress-on-environmental-action
contentType: pressReleasePage
updatedAt: 2026-10-07T08:00:06.039Z
---

- Almost two-thirds (63%) of SMEs either have a transition plan or expect to have one within two years, although just 15% currently have one in place 
- While 95% of disclosing SMEs are making progress, only 20% have emissions reduction targets and 32% have emissions reduction initiatives in place 
- Spain, France and Sweden lead the way in environmental progress, while SMEs in Singapore and USA lag behind 

   

**London, October 7, 2026 -** Small and medium-sized enterprises (SMEs) are a critical but often overlooked part of the global environmental transition. Representing roughly 90% of businesses worldwide and 60% of global business-related emissions, their ability to turn environmental ambition into action is essential. New analysis from CDP from almost **11,000 disclosing companies**, shows encouraging signs of progress, as SMEs strengthen the foundations needed to manage their environmental impacts and drive action.

[***From preparation to progress: SME Disclosure Data Insights 2026***](https://www.cdp.net/en/insights/from-preparation-to-progress)* *finds that more than **95% of SMEs **have made progress against at least one key environmental indicator, while **nearly 40% **meet most or all of the basic indicators assessed. However, the analysis also reveals a significant gap between putting the right structures in place and taking action. Just **20% **of SMEs have an emissions reduction target, while only **32% **have emissions reduction initiatives in place.

The findings point to future momentum lies ahead: almost **two thirds (63%) **of SMEs either have a transition plan or expect to have one within two years, although just **15% **currently have one in place. Progress on governance, risk management and stakeholder engagement suggest SMEs are already strengthening the foundations for action. As transition planning becomes more widespread, this is expected to support more SMEs in setting emissions reduction targets and putting initiatives into action, helping close the gap between preparation and action.

Progress is not even across markets. European SMEs are among the strongest performers, with **Spain, France **and **Sweden **leading the way among countries assessed. By contrast, SMEs in **Singapore **and the **United States **show the least progress, with most meeting none or only a few of the indicators assessed.

Europe’s stronger performance comes amid a rapidly evolving sustainability reporting landscape, with growing emphasis on standardised voluntary disclosures for SMEs (VSME). CDP’s SME questionnaire is closely aligned with European reporting frameworks, including VSME, helping smaller businesses respond to these growing market expectations.

**Simon Fischweicher, CDP Chief Customer Success Officer, said:** 

*“SMEs are indispensable to the transition to a net-zero, earth-positive economy. Our data shows that many are already doing the hard work of putting the foundations in place by understanding environmental risks, strengthening governance and preparing for transition. But foundations alone will not cut emissions. *

*“The next step is helping SMEs turn preparation into progress: setting and achieving credible targets, investing in emissions reduction initiatives and embedding action throughout their businesses. Buyers, financial institutions and policymakers have an important role to play by making finance, incentives and practical support more accessible; helping SMEs strengthen their resilience and competitiveness while accelerating the transition.”* 

   

Previous research from CDP in partnership with HSBC found that suppliers were **52% **more likely to reduce their annual emissions when buyers offered financial incentives compared with training alone, highlighting the role that larger businesses can play in accelerating action across their supply chains.

SMEs in **Manufacturing, Materials, Transportation Services **and **Power Generation **demonstrate some of the strongest progress against CDP’s basic indicators. Progress within these sectors is particularly significant given their emissions and dependencies on nature, and their importance to the global transition. By comparison, SMEs in **Retail **and **Services **show less progress against the indicators assessed. Given their role within wider value chains, accelerating environmental action in these sectors will also be important.

   

**--Ends-- **

   

###### Notes to the editor 

Almost 11,000 companies disclosed through CDP’s dedicated SME questionnaire in 2025. The questionnaire, launched in 2023, provides SMEs with a streamlined route to disclose environmental data and build their capacity to respond to growing demands from customers and capital markets. 

Indicators include Governance, Process for identifying, assessing and managing environmental risks and opps, Risks identified, Opportunities identified, Climate R&Os influence strategy and/or FP, Stakeholder engagement, GHG Emissions disclosure, Electricity consumption, Targets, Emission reduction initiatives and Transition plan 

   

###### For more information, please contact:

- Samika Meshram-Jasinski ([samika.meshram@cdp.net](mailto:samika.meshram@cdp.net)) 
- George Bush ([george.bush@cdp.net](mailto:george.bush@cdp.net)) 

   

###### About CDP 

CDP is a global non-profit that runs the world’s only independent environmental disclosure system. As the founder of environmental reporting, we believe in transparency and the power of data to drive change. Partnering with leaders in enterprise, capital, policy and science, we surface the information needed to enable Earth-positive decisions. 

We helped more than 22,100 companies and over 1,000 cities, states and regions disclose their environmental impacts in 2025. Financial institutions with more than a quarter of the world’s institutional assets use CDP data to help inform investment and lending decisions. Aligned with the ISSB’s climate standard, IFRS S2, as its foundational baseline, CDP integrates best practice reporting standards and frameworks in one place. Our team is truly global, united by our shared desire to build a world where people, planet and profit are truly balanced. 

In June 2026, we announced CDP will evolve into two separate organizations - a commercial entity, CDP, and a non-profit CDP Foundation. This transition into two organizations is expected to happen over the course of six months and both organizations will continue to remain united in shared ambition: to surface new information, enabling Earth-positive decisions to protect future generations.