Small and medium-sized enterprises (SMEs) are the beating heart of the global economy, representing 90% of all businesses and contributing to over 70% of global employment. But what’s often overlooked is that they’re also deeply embedded in the carbon equation. In fact, SMEs are responsible for over 50% of global supply chain emissions, making them a critical force in the transition towards a sustainable economy.
A view of the city's vibrant business district. AI generated picture.
Yet while headlines often focus on big corporate environmental commitments, it’s clear that net zero for SMEs is no longer optional. It’s becoming a strategic imperative, not just for ecological compliance but for long-term business survival. Investors, regulators, and customers alike are accelerating the shift towards sustainability, and SMEs who don’t adapt risk being left behind in outdated, high-emission supply chains.
The good news? The tools, frameworks, and affordable carbon footprint tools for SMEs already exist. Getting started is simpler than you think. From measuring emissions with accessible tools like DGB’s CO₂ Expert tool, to developing a practical decarbonisation roadmap, to aligning with science-based targets for small enterprises, SMEs can now confidently map their own path to resilience.
DGB’s CO₂ Expert tool.
This blog will guide you through how SMEs can achieve net-zero emissions. Whether you're just exploring your options or ready to act, we’ll outline a step-by-step net-zero strategy for small businesses—backed by data, practical insights, and global momentum. It’s time to move from hesitation to leadership.
Read more: SME sustainability tools: How they help your business grow
Because in the race to build a future-ready business, sustainability isn’t a cost. It’s a competitive edge.
Net-zero isn’t just for the big players: why SMEs must act now
There’s a lingering misconception in the business world that sustainability is a luxury reserved for large corporations with sprawling ESG departments and deep pockets. But that narrative no longer holds up, especially in today’s interconnected economy.
The truth is, SMEs are both vulnerable to and responsible for a major share of carbon emissions. Positioned upstream and downstream in global supply chains, small enterprises are increasingly seen as the linchpin in the race to decarbonise. As of 2025, over 6,000 SMEs have already committed to the Science-Based Targets initiative (SBTi). That number is expected to surge past 30,000 by 2030, a reflection of growing awareness and access to SME-specific tools.
Unlike the complex and costly frameworks once built for multinationals, SBTi for SMEs is now tailored, streamlined, and financially accessible. It offers a practical blueprint for science-based targets for small enterprises, empowering them to act without being overwhelmed by bureaucracy.
And there’s more at stake than optics. Frameworks like CDP, CSRD, and TCFD are increasingly compelling large corporations to engage their SME suppliers on Scope 3 emissions. In other words, if you do business with corporates (or hope to), your carbon footprint is already under scrutiny—whether you’ve measured it or not.
Read more: Uncovering the impact of Scope 3 emissions
Committing to SME sustainability is no longer just a badge of honour—it’s becoming a condition of doing business. The companies acting now aren’t just responding to pressure. They’re positioning themselves as future-ready, trusted partners in global value chains. And that positioning is what will separate tomorrow’s market leaders from the ones scrambling to catch up.
Mapping your path: A step-by-step net-zero strategy for small businesses
Sustainability doesn’t have to start with extensive commitments or costly infrastructure. In fact, the most impactful journeys begin with something far more manageable: understanding where your emissions come from and what you can realistically control.
A step-by-step net-zero strategy for small businesses.
The pathway to net zero for SMEs is simple in structure, even if complex in detail. It follows three essential stages:
1. Measure
You can’t reduce what you haven’t measured. A credible carbon reduction strategy begins with an accurate footprint, and the data is more accessible than ever. Most products and services carry emissions at every stage of their lifecycle. A typical breakdown looks like this:
- Raw materials: 35%
- Production: 20%
- Transportation: 15%
- Use phase: 20%
- End of life: 10%
This means that even if your direct emissions (Scope 1 and 2) seem low, your Scope 3 emissions—those tied to your suppliers, logistics, and product use—are likely substantial. That’s why getting a full view of your carbon footprint matters.
You don’t need to walk this road alone. We’ve built a carbon footprint tool that gets you started accurately, affordably, and now. Because the sooner you act, the more control you gain over your risk exposure, your costs, and your reputation.
2. Reduce
Once you have clarity, it becomes easier to identify low-hanging fruit. This could mean upgrading to energy-efficient systems, rethinking business travel, or switching to renewable electricity. It also means taking a closer look at your suppliers and partners, because building a sustainable supply chain multiplies your impact while future-proofing your operations.
Read more: SME carbon footprints: a practical guide
3. Compensate
While you are working on reducing what you can, the next step is to balance out what remains. Carbon compensation—when done transparently and responsibly—provides a credible, fast way to neutralise unavoidable emissions. It’s not a shortcut. It’s a bridge. Carbon reduction takes time and sometimes substantial investment. Compensation is therefore a complementary approach to reduction that can be implemented now to address past and current unavoidable emissions. Without carbon compensation, your business will still have a significant past footprint by 2050.
This is the essence of a step-by-step net-zero strategy for small businesses: measure your impact, reduce it wherever possible, and compensate for the rest.
Read more: High-quality carbon credits vs regular carbon credits: what sets them apart?
With DGB Group’s nature-based carbon units, you can effectively balance your carbon footprint while making a positive impact. All our carbon projects are independently verified and provide many co-benefits for nature and local communities, ensuring your action to compensate for your footprint goes beyond emissions.
Beyond reduction: carbon offsetting and real-world progress
No matter how committed a business is to reducing its emissions, some impacts are unavoidable, at least in the near term. That’s where carbon offsetting plays a vital, and often misunderstood, role.
For SMEs, offsets are not a shortcut. They are a strategic bridge between what you can reduce now and what you’ll decarbonise over time. When approached responsibly, carbon offsetting allows you to meet SME net-zero compliance targets by 2030, while contributing to measurable environmental and social outcomes today.
At DGB, we develop and provide high-integrity, nature-based carbon units rooted in ecosystem restoration, biodiversity protection, and community empowerment. These aren’t abstract transactions; they’re tangible projects that regenerate forests, protect endangered habitats, and uplift local livelihoods.
DGB team members and the local community during cookstove distribution. Hongera Energy Efficient Cookstoves Project, DGB.
Choosing the right offsets ensures your business isn’t just neutralising emissions, but actively contributing to global progress. And as demand for verified units continues to surge—driven by increasing regulations and consumer pressure—securing high-quality units early becomes a smart, future-oriented move.
Read more: Carbon credit price guide: Understanding spot, forward, and market factors
So if you're asking: Do we need to offset? The better question might be: Do we want our business to be part of the problem—or part of the restoration?
With DGB, your carbon compensation doesn’t just clean up your operations. It restores ecosystems. It supports communities. It builds credibility.
Global momentum: why aligning now pays off
The net-zero transition is a global economic reset. Around the world, governments, regulators, and financial institutions are recalibrating the rules of business, and sustainability is moving from optional to expected.
Countries from all over the world, from Singapore to Kenya, and Argentina have recently launched domestic carbon markets. These aren’t isolated experiments—they’re part of a growing wave of policy frameworks designed to price carbon, standardise reporting, and reward low-emission players. And more are on the way. As these carbon markets mature, they will shape trade, investment, and procurement decisions across borders.
Read more: Carbon footprint measurement: a practical guide
Financial institutions are also tightening the lens. Increasingly, banks and investors are tying loan terms and capital access to environmental disclosures and emissions performance. That means SMEs demonstrating a credible decarbonisation roadmap, and progress against it, are more likely to unlock preferential financing, attract customers, and future-proof their operations.
And then there’s your brand. More than ever, buyers are seeking out responsible partners. A public commitment to SME sustainability and science-based targets for small enterprises signals to clients, especially larger corporates, that you're aligned with their values—and their Scope 3 requirements.
This is a rapidly maturing landscape. And in every industry, the businesses moving first are capturing reputational gains, policy advantages, and access to new markets.
The question is no longer if sustainability will redefine your industry—but whether your business will help lead that change, or be late in adopting it.
Become the business that leads with DGB Group
The roadmap is clear. The tools are ready. And the business case for early action is no longer just compelling, it’s overwhelming.
A drone shot of a tree nursery in Kenya.
From business carbon footprint reduction to affordable offsetting solutions, SMEs now have everything they need to take bold, credible steps towards net zero. And the benefits? Lower costs, stronger supply chain partnerships, easier access to capital, and a reputation that stands out in a crowded market.
Benefits of an impactful CO2 strategy.
Early adopters aren’t just meeting expectations—they’re shaping them. And that’s what DGB is here for. Whether you're just starting out or refining your strategy, our CO₂ Expert tool is built to get you moving fast, free, and with precision. We offer expert-led support, automated emissions calculations, and validated reports that turn data into strategic action.
In today’s economy, sustainability represents resilience and relevance. It’s smart business. And the benefits of net zero for small businesses cannot be overstated.
So don’t wait to be pushed by policy or pressured by partners. Lead with purpose and precision.
Get started today with our free business carbon footprint calculator—and let net zero become your edge, not your burden.
