CORPORATE ACTION → DEEP DIVE
SME Digital Tools & Resources
Navigating sustainability without overwhelm – practical guidance for small and medium businesses.
In 30 Seconds
SMEs are increasingly being asked for carbon data – by corporate customers, banks, and government procurement. The challenge? There are 270+ carbon tools out there, and the landscape is fragmented and overwhelming.
The reality: 9% of UK micro-businesses have been asked for carbon data. For medium-sized businesses, it's over a third. This is only going to increase as large companies report on their supply chains under CSRD and UK SRS.
The opportunity: Getting started doesn't have to be complicated. The right tools, a clear framework, and practical guidance can get you moving without the overwhelm.
Why SMEs Are Being Asked for Data
Three converging forces are driving carbon data requests to SMEs. Understanding where the pressure is coming from helps you prioritise your response.
Corporate Supply Chains
Large companies are accounting for emissions across their entire value chains. For most, the majority of their carbon footprint lies in supply chains – that means you.
Scope 3 reporting requirements are driving requests downstream to SME suppliers.
Financial Institutions
Banks and investors are aligning portfolios to net zero targets. They're assessing the climate impact of their loans and investments.
Emissions transparency is becoming a key input for sustainable finance access.
Government & Regulators
Sustainability is embedded in public procurement. Contracts over £5m require Carbon Reduction Plans. NHS has similar requirements.
PPN 006/21 and similar policies are making carbon data a procurement requirement.
The cascade effect: SMEs aren't directly subject to CSRD or UK SRS, but the indirect impact is immediate. When your corporate customers need to report on their supply chains, they need data from you.
The Seven Steps Framework
The UK Business Climate Hub provides a practical seven-step model for SME sustainability action. You don't need to do everything at once – start where it makes sense for your business.
1. Understand the Basics
What is net zero? What do the terms mean? What are the legal requirements?
Start with the fundamentals. Net zero means at least 90% absolute reduction plus carbon removals for the balance.
2. Involve Your Team
Build internal capability through training, apprenticeships, or external support.
Sustainability can't be one person's job. Engage your team early.
3. Make the Commitment
Consider the SME Climate Commitment: halve by 2030, net zero by 2050, report yearly.
Public commitment creates accountability. The SME Climate Hub provides a platform.
4. Measure Your Footprint
Use carbon calculators to establish your baseline. Start simple.
Don't get lost in 270+ tools. Pick one appropriate to your sector and size.
5. Take Action
Energy efficiency, transport, renewables, waste – identify quick wins first.
Many businesses are already taking steps without realising. Document what you're doing.
6. Access Funding
Grants, support programmes, and schemes exist – but finding them is hard.
From Boiler Upgrade Scheme to local authority support, funding is available.
7. Engage Your Supply Chain
Understand your supply chain emissions and your role as a supplier.
You're both a customer and a supplier. Work both directions.
Key Resources
These are the main platforms and tools for UK SMEs. Start here rather than getting lost in the 270+ carbon tools available.
UK Business Climate Hub
The single point of net zero information for UK SMEs. Developed with government and maintained by Broadway Initiative. Includes carbon calculators, sector guidance, and step-by-step support.
businessclimatehub.uk →SME Climate Hub (International)
Part of the UN Race to Zero campaign. Make the SME Climate Commitment, access tools and resources, and join a global movement of small businesses taking climate action.
smeclimatehub.org →PPN 006/21 Template
If you're responding to government procurement requirements, start with the official Carbon Reduction Plan template. It tells you exactly what's needed.
Gov.uk guidance →Broadway Initiative
Coalition of major trade associations working on UK net zero. Powers the Business Climate Hub and developing the new SME Sustainability Data Reporting Standard.
broadwayinitiative.org.uk →Coming Soon: SME Sustainability Data Reporting Standard
Broadway Initiative and Bankers for Net Zero are developing a voluntary reporting standard specifically for SMEs. The goal: “create once, share many” – produce one set of data that satisfies multiple requests from customers, banks, and others.
Getting Started Without Overwhelm
The feeling of overwhelm is common among SMEs facing sustainability requirements for the first time. Here's how to cut through it.
Start with Why
What triggered this? A customer request? Bank question? Procurement requirement? Start by understanding what's actually being asked of you. You may not need comprehensive carbon accounting – yet.
Document What You're Already Doing
Many businesses are already taking sustainability steps without realising it. LED lighting? Electric vehicles? Recycling? Local suppliers? Start by capturing what's already in place.
Pick One Tool
Don't compare 270 carbon calculators. Pick one that's appropriate for your sector and size. The SME Climate Hub basic calculator is a sensible starting point for most service businesses.
Quick Wins First
Identify easy actions that show progress. Switch energy tariff to renewable. Reduce business travel. Optimise heating. These create momentum without major investment or complexity.
The key insight: Perfect data isn't required to get started. A reasonable estimate with clear methodology is far better than paralysis. You can refine your approach over time.
The Business Case
Beyond responding to requests, SMEs that engage with sustainability report real business benefits.
Win New Business
Sustainability credentials are increasingly a factor in purchasing decisions. Being able to respond to carbon data requests keeps you in the running for contracts you might otherwise lose.
Reduce Costs
Energy efficiency, waste reduction, and optimised travel all reduce costs. The same actions that cut emissions often cut expenses.
Access Finance
Banks and investors increasingly consider sustainability in lending decisions. Demonstrating awareness and action can improve access to capital.
Attract Talent
Employees – especially younger workers – increasingly want to work for businesses that take sustainability seriously. It's a recruitment differentiator.
The Pandion View
The tools and frameworks exist. The challenge is knowing where to start, which tool to pick, and how to respond to specific requests without getting lost in complexity.
We see ourselves as the human translator layer – helping SMEs navigate the landscape, respond to specific requests, and get started without overwhelm. The goal isn't perfect carbon accounting; it's practical progress that keeps you competitive.
Whether you're responding to your first carbon data request, trying to figure out which tool to use, or looking for help accessing sustainability funding – sometimes having a guide makes all the difference.