SMEs offering green products or services

It is likely to be within Europe’s 23 million small and medium enterprises (SMEs) where much of the pioneering and ground-breaking circular business developments will happen. Responses to Eurobarometer surveys indicate that more SMEs are offering green products and services although the trend is gradual. These ‘green’ activities are defined as products and services with a predominant function of reducing environmental risk and minimising pollution and resources. While not all of these will be focused on circular economy, it is nonetheless relevant in terms of a broader shift to more sustainable business models

Green products and services are defined as products and services with a predominant function of reducing environmental risk and minimising pollution and resources. About one in three (32%) SMEs in the EU offer green products or services, with a further 11% planning to do so in the next two years.

SMEs offering green products and services were also asked how much of their annual turnover of the latest available fiscal year was attributed to these products and services. For the largest share (43%) of SMEs selling green products and services, these products and services make up not more than 10% of their most recent annual turnover. About one in five (21%) reply that green products and services represent between 11% and 50% of their annual turnover and a slightly higher proportion (23%) answer that the sale of such products and services makes up more than 50% of their turnover. These results present no significant change compared to 2017.

Europe’s 23 million small and medium enterprises (SMEs) are the backbone of the EU economy. They employ around 83 million people, account for about half of Europe’s GDP and play a key role in adding value in every sector of the economy. As well as being economically important, SMEs are environmentally important: although their individual impact is small, their cumulative impact on the environment is significant. With 67 tons, the average SME emits very little CO2, especially if compared to emissions of 20 027 tons for the average large company (with 250 or more employees). Due to the large number of SMEs, however, their collective share in total emissions is high, at 63% of all CO2 emissions by companies.