In an increasingly sustainability-conscious global landscape, Spanish SMEs stand out as leaders in integrating environmental policies. According to Sage’s global report, “Unlocking Sustainable Financing for SMEs,” presented at COP29 in Baku, 73% of SMEs in Spain have a sustainability policy, significantly surpassing the global average of 61%.
This commitment not only strengthens Spain’s leadership in the fight against climate change but also highlights the growing need for access to green financing to further boost these initiatives. However, the report reveals significant gaps in the knowledge and tools necessary for SMEs to seize these opportunities.
The Rise of Sustainability among Spanish SMEs
Spanish SMEs have recognized the importance of sustainability as a central pillar of their operations. More than 77% believe that sustainability is key to their business, and 73% already have sustainability reporting systems in place. Furthermore, 59% have adopted renewable energy sources, underscoring their commitment to the energy transition.
Despite these advancements, barriers persist. 78% of Spanish SMEs feel that reporting processes are too complex, hindering their access to critical tools such as green financing.
The Opportunity of Green Financing: A $789 Billion Market
The Sage report estimates that, with the right support, SMEs could unlock a $789 billion global green financing opportunity. This type of financing includes sustainability-linked loans, green bonds, and credit lines specialized for energy efficiency or renewable energy projects.
However, globally, only 2.8% of SMEs have sought green financing in the past three years, primarily due to a lack of knowledge, strict reporting standards, and data quality issues. In Spain, while 59% of SMEs have sought access to this financing, only 36% have successfully obtained it.
The Key Role of Sustainability Reporting
The report highlights a “virtuous circle” between reporting, access to green financing, and improved climate action. According to Sage, SMEs that implement comprehensive sustainability reporting are 5.1 times more likely to formalize these processes and 1.5 times more likely to secure green financing.
This mechanism not only facilitates access to financial resources but also enables companies to implement more sustainable practices, such as investing in efficient equipment or developing low-carbon products.
The Path Forward: Simplifying and Digitizing Reporting
The report underscores the importance of digital tools to simplify reporting processes and reduce barriers to green financing. Companies that adopt these solutions not only enhance their sustainability but also position themselves better before investors and lenders.
According to Surinder Sond, Executive Vice President of Sustainability and Society at Sage, “there is no pathway to net-zero without SMEs.” Sond emphasizes that the key to unlocking this potential lies in fostering stronger collaboration among policymakers, financial institutions, and technology providers.
Spain as a Global Benchmark in Business Sustainability
With clear leadership in sustainable policies, Spanish SMEs have the opportunity to become a global example of how small and medium-sized enterprises can be agents of change in the transition to a more sustainable economic model. However, overcoming financing challenges and simplifying reporting processes will be crucial to maximizing their positive impact on both the environment and the economy.
The report concludes that supporting SMEs in this transition not only benefits the planet but also strengthens the resilience and competitiveness of these businesses, creating an environment where everyone—companies and society alike—wins.