At a glance

Engage with insights from a June 2026 ACCA/UK Finance roundtable held during London Climate Action Week.

Understand how SMEs are responding to increasing sustainability data requirements and the issues facing the sector.

Read solutions and actionable recommendations for policymakers and regulators working on disclosure and assurance standards.

Key findings

SMEs are pivotal in the transition to a low-carbon economy, and our work concentrates on how SMEs can be supported to ensure a successful transition to a more sustainable future.

Key recommendations 

Recommendations were developed in line with the solutions proposed by roundtable participants. These recommendations form a unique opportunity for the UK to lead on tackling global challenges:

Standardisation and consistency in sustainability reporting 

  • Frameworks and collection methods need to be standardised across SMEs. Simplicity, certainty and stability are crucial in effective application of regulation and standards. 

Sector and size considerations 

  • Data collection should account for differences in business size, structure and activities, not just sector. 

Incentives and standardisation 

  • The consolidation of positive initiatives and subsidies for SMEs with guidance and clarification for SMEs. 

The adoption of carbon intensity metrics and open standards 

  • The introduction of carbon intensity metrics and growth considerations would avoid penalising growing businesses and provide a more accurate reflection of sustainability performance.  

Dissemination of tools to trusted advisers 

  • Ensure that tools and initiatives for collecting SME sustainability data are communicated to trusted advisers such as accountants and membership organisations for wider signposting to SMEs. 

Support initiatives to create effective feedback loops 

  • Ensure that SMEs are provided with actionable insights for the data that they provide. 

Guidance and clarification 

  • Bottom-up development of open-source standards for sustainability reporting, with contributions from technology providers and endorsement from trusted organisations. 

The growing challenge for SMEs 

More than 60,000 ACCA members work in SMEs globally, and the finance profession is at the heart of credible climate action. During LCAW, ACCA and UK Finance hosted a roundtable to discuss solutions to the practical challenges SMEs face in collecting and reporting on sustainability and climate metrics. 

While this report does highlight some of the key challenges that SMEs face in sustainability data collection and reporting, ACCA’s research centres on solutions and policy recommendations to resolve these challenges.

Acknowledging that expectations for transparency and disclosure are continuing to rise, driven by supply-chain demand, and that SMEs often lack the resources and tools to comply effectively, the roundtable explored how investors and institutions are using this data and integrating it into their decision making.

Sustainability reporting is no longer just for large organisations: it is becoming an expectation for organisations of all sizes. Driven in part by the trickle-down effects of evolving regulation and increasing supply chain demands as financial institutions and large corporates look to establish more sustainable and resilient supply chains. 

Multiple roundtable and survey participants highlighted the fragmentation of data requests, with SMEs often being asked for different information by various large organisations, leading to confusion and inefficiencies. The difference in styles and formats and lack of standardised approach exacerbates the burden on SMEs and complicates their ability to respond effectively.

In practice, engagement with and regulation of SMEs are historically reactive. From a regulatory perspective this often because of the resource constraints that many SMEs face and the volume and diversity of SME businesses. Nonetheless, when SMEs are not actively engaged in policy, regulation and implementation phases, the consequences can be adverse and far-reaching. 

Most SMEs, especially those below regulatory thresholds, respond reactively to sustainability data requests. These trickle down the supply chain even though they arise from regulation designed for large organisations and financial services.

Next steps 

The recommendations offer a unique opportunity for the UK to lead on this area, which is vital for international trade, investment and access to finance. The roundtable participants and organisers will continue to develop and support initiatives and are available to engage further with policymakers and regulators.

Further reading