Small and medium enterprises (SMEs) are the backbone of the UK economy. With 5.5 million SMEs representing 99.8% of all businesses, supporting 16.6 million jobs and generating £2.8 trillion in turnover, their collective impact is enormous.
SMEs are particularly well represented in construction, professional services and wholesale & retail but they’re present in every major sector* across the UK. Given this massive economic footprint, you might expect SMEs to face extensive sustainability reporting requirements.
However, the reality is that most current UK sustainability regulations don't apply to small and medium enterprises.**
Companies with fewer than 250 employees, less than £54 million turnover, and a balance sheet of under £27 million, are exempt from regulations such as SECR and ESOS (full definitions below!) and most mandatory reporting requirements. From a pure compliance perspective, many SMEs could do absolutely nothing and remain legally compliant.
But… legal compliance isn’t the whole story.
While regulatory requirements may be limited, the business case for sustainability action is becoming compelling for most SMEs with growth ambitions. Supply chain pressures, customer expectations, government procurement opportunities, and access to finance are all increasingly tied to environmental credentials.
This guide breaks down the sustainability reporting landscape specifically for UK SMEs. Each section has a short headline and quick list of what size companies are affected. So you can skim in 3 minutes or read in full and keep for future reference. Here’s what we’ll cover:
So if you are an SME, download the guide for a full list of regulations and how they affect you.