A new climate disclosure framework for small and medium-sized enterprises (SMEs) has been released by CDP.

Created in collaboration with the SME Climate Hub, and with partners the Exponential Roadmap Initiative and Normative, the framework provides key climate-related reporting indicators and metrics that SMEs should be reporting on and encourages setting targets grounded in science. Its modular design provides flexibility for SMEs and data requesters to tailor the use of the framework to their disclosure needs.

While many businesses are demonstrating transformational ambition on climate action, much of the progress made has been driven by large, high emitting, global corporations. Support and guidance for sustainability reporting has often not catered to the needs of SMEs who are increasingly being requested to make climate commitments and report against progress by their stakeholders and lenders. Further, SMEs are a significant innovation force for climate solutions, which enables their customers to avoid or reduce emissions. Disclosure makes it possible to attract investments and expand business.

Furthermore, many large companies want their suppliers – often SMEs – to measure, report and cut down their own emissions - cascading climate action down the supply chain. This has wide economic and societal impacts as SMEs play a major role in most economies worldwide; globally, they represent about 90 per cent of businesses and more than 50 per cent of employment worldwide.

Sonya Bhonsle, CDP’s global head of value chains and regional director of corporations, commented: “SMEs play a major role in economies around the world; without them, we cannot limit global temperature rise to 1.5C. We are delighted to have launched a framework in partnership with the SME Climate Hub that caters specifically to the sustainability reporting needs of SMEs. We hope the framework empowers SMEs to take climate action, and in turn, increases their resilience to climate change and allows them to play an active role in the transition to a low carbon economy.”

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