Global SME reporting practices on ESG

The report analyzes the ESG reporting practices of 70 SMEs globally, categorized by size (micro to medium+) and sector. It highlights strengths in local community impact, water reporting in water-scarce regions, and detailed life-cycle analyses (LCAs) for specific products. While many SMEs use global frameworks like the SDGs, the report notes gaps in Scope 3 GHG emissions reporting and a continued reliance on narrative rather than quantitative disclosures in some cases.

• SMEs often demonstrate a stronger ability than larger companies to report on life-cycle analyses (LCAs) and waste management, specifically tracking the input-output-outcome of production.
• SMEs in South America and India frequently provide more detailed and decision-useful water disclosures than larger companies, including data on water sources, stress assessments, and discharge.
• GHG reporting among SMEs is predominantly limited to Scope 1 and 2 emissions, with Scope 3 reporting remaining infrequent and mostly focused on upstream activities.
• SMEs frequently prioritize reporting on their impact on local communities, often integrating this focus into their core business purpose.
• The choice between single and double materiality approaches in SME reporting is often driven by regional legislation or stock exchange rules, such as the EU's influence on double materiality and the ISSB's influence on single materiality in the UK, Canada, and Australia.
• Some SMEs are implementing advanced product-level reporting, such as calculating GHG emissions per individual product style, which provides a competitive edge for regulations like the EU Carbon Border Adjustment Mechanism (CBAM).
• Biodiversity reporting is an emerging area of innovation for SMEs, particularly those in South America, though financial risk assessments related to biodiversity are not yet present in the reviewed sample.

APA

We Mean Business Coalition (n.d.). Global SME reporting practices on ESG. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/Global_SME_reporting_practice_ESG_Final.pdf

Chicago

We Mean Business Coalition. Global SME reporting practices on ESG. n.d. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/Global_SME_reporting_practice_ESG_Final.pdf.

Wikipedia

{{cite report |author=We Mean Business Coalition |title=Global SME reporting practices on ESG |url=https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/Global_SME_reporting_practice_ESG_Final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wemeanbusinesscoalitionndglobal, author = {{We Mean Business Coalition}}, title = {{Global SME reporting practices on ESG}}, institution = {We Mean Business Coalition}, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/Global_SME_reporting_practice_ESG_Final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }