SME Sustainability Barometer Finds SMEs Falling Behind on Green Transition

Study by Gprnt and PwC calls for collective ecosystem action to help SMEs decarbonise and capture new growth opportunities

SINGAPORE, November 12, 2025 — A new study by Gprnt and PwC Singapore has revealed that small and medium enterprises (SMEs) — the backbone of Singapore’s economy — are struggling to embark on their sustainability journeys despite growing global and local pressures to decarbonise.

The 2025 SME Sustainability Barometer, supported by the Singapore Business Federation (SBF) and Sustainability Alliance (SA), surveyed over 560 SMEs across 19 sectors, finding that three in four have yet to take concrete steps towards sustainability. Key barriers identified include financial constraints, skills shortages, and limited time and resources — issues compounded by economic uncertainty and rising operational costs.

Funding, Skills and Time: The Trifecta of Barriers

The study found that more than half of SMEs view sustainability as difficult to justify amid tight margins, while four in five lack clarity on potential returns from sustainability investments. Around 75% of SMEs lack the technical know-how to translate sustainability ambitions into action plans, and 40% cited limited time as a major constraint.

Compounding the challenge, over 70% of SMEs have not accessed any form of government assistance despite the availability of various green support schemes — underscoring persistent gaps in awareness, accessibility, and relevance.

“We must enable SMEs to view sustainability not as a cost to bear, but as a business strategy for securing their place in the carbon-constrained economy of the future,” said Ravi Menon, Singapore’s Ambassador for Climate Action. “Environmental sustainability will become an increasingly important driver of competitiveness as supply chains and customers demand credible climate action.”

A Call for Ecosystem-Wide Collaboration

The Barometer highlights five key recommendations for systemic action:

Help SMEs realise the value of sustainability – by showcasing measurable gains through a central case bank and data-backed benchmarks.

Help SMEs get started – by guiding them through simple, practical roadmaps and appointing internal “sustainability champions.”

Scale through flagship programmes – by expanding “Queen Bee” initiatives where large corporates mentor SME suppliers on sustainability.

Keep costs trim through shared solutions – by leveraging trade associations to pool resources for common sustainability needs.

Recognise and reward progress – by developing a unified “sustainability passport” to streamline certifications and signal credibility to financiers and buyers.

“When SMEs go green, they don’t act alone — they lift the networks around them,” said Lionel Wong, CEO of Gprnt. “We need to layer clearer market signals and incentives, from green procurement to financing, to make sustainability not just viable, but valuable.”

PwC’s Lee Bing Yi echoed this sentiment, emphasising that closing the awareness and access gap is essential: “Nearly three-quarters of SMEs have yet to tap available sustainability support. Through collective action and coordinated ecosystem approaches, we can lower barriers and build a compelling business case for SMEs to take action.”

Turning Insights into Action

Following the study, Gprnt, SBF, and SA will engage stakeholders across the public and private sectors to evaluate the feasibility of implementing the Barometer’s recommendations.

SBF Chief Executive Officer Kok Ping Soon called on “Queen Bee” corporates and trade associations to integrate sustainability into procurement and value-chain decisions, while Equator Renewables Asia CEO Frank Phuan, who co-chairs SA, reaffirmed the importance of pooling resources to achieve economies of scale.

“Sustainability can easily take a back seat in today’s tough climate,” Kok said. “But it must be seen as an investment — one that reduces costs through efficiencies and opens doors to new business opportunities.”

The Barometer’s findings underscore an urgent need for a whole-of-nation and whole-of-economy approach to decarbonisation — one that empowers SMEs not only to comply but to compete and thrive in the green transition.

Access the full report: https://www.gprnt.ai/resources/smesustainabilitybarometer