Can we count on the commitment of European SMEs to achieve SGD12? An exploratory study of business sustainability

Abstract

The United Nations created the 17 Sustainable Development Goals (SDG) to serve as a compass for a better future, i.e., for a sustainable future, a green, socially and financially prosperous tomorrow. Due to the significant responsibility of small and medium-sized enterprises (SMEs) to environmental dilapidation and destruction, they are an essential engine to the green transition. Business activities are central to achieving SDG12. This article focuses on the contribution of European SMEs to carbon neutrality. We explore the influence of SMEs' investment in micro resource-efficiency actions on adopting macro measures of carbon neutrality and whether investments, financial, administrative, and regulatory requirements influence the implementation of resource efficiency practices. This is the first attempt to explore the interrelationship between micro resource efficiency and macro climate change measures. A quantitative analysis was performed using descriptive statistics, factor analysis (exploratory and confirmatory factor analysis) and the partial least squares method. Data from 2021 included 17,144 European SMEs and were retrieved from the fifth wave of the Flash Eurobarometer 498. The results reveal that SMEs' implementation of resource-efficient actions at the micro level positively influenced the adoption of macro-level measures for decarbonization. Furthermore, implementing these micro-measures was positively influenced by business investment and negatively affected by external sources of finance and regulatory and administrative requirements. Overall, the findings indicate that European SMEs still have a long way to go toward the twelfth SDG and decarbonization.