Small and medium enterprises are struggling to meet climate goals and reduce emissions due to a lack of financial incentives to help them do so, a report has found.

A new report from SME Climate Hub, entitled Mobilizing Small Businesses to Net Zero, found 84% of SMEs have not been offered any financial incentives to help reduce emissions.

Furthermore, 52% of respondents cited a lack of government-sponsored policies or initiatives, which prove to be an obstacle for addressing the urgency of climate change.

The report found 44% of small businesses are aware of a heightened emphasis on reducing greenhouse emissions, yet the lack of supportive regulatory frameworks is acting as a barrier.

We Mean Business Coalition CEO, María Mendiluce said SMEs account for 90% of all businesses globally, highlighting the importance of their role in climate change.

"A significant percentage of these companies will be important for providing the products and workers needed to move the world from the fossil fuel-based economy to one powered by clean energy," she said.

"As global regulations and customer expectations increase, SMEs are reaping business benefits of taking action. Meanwhile, with a more concentrated customer base, staff and localized supply," she added.

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