Sustainability pressures and opportunities for SMBs in 2025

Growing pressure from regulations

Governments worldwide are tightening sustainability rules — and expectations are reaching smaller suppliers.

• Europe: The Corporate Sustainability Reporting Directive (CSRD) now requires detailed climate disclosures from companies operating in the EU. Even if your business isn’t based there, you may be asked for emissions data if you serve European clients.

• United States: California’s Climate Corporate Data Accountability Act (SB 253) requires companies with over $1 billion in revenue to report full Scope 1, 2, and 3 emissions. Suppliers to those companies will feel the pull.

• Global trend: Disclosure requirements are converging around the GHG Protocol, which means consistent reporting is expected across markets.

What this means for SMBs: Even if you aren’t directly regulated, your customers may need your data to comply.

Supply chains raising the bar

Large corporations can’t hit their climate goals without supplier action, so sustainability is now built into procurement.

• Microsoft requires suppliers to set reduction targets and report progress.

• Unilever asks vendors to align with its Climate Transition Action Plan.

• Walmart’s Project Gigaton has already reduced one billion metric tons of supply chain emissions six years early.
  

What this means for SMBs: Suppliers who can’t meet reporting requests risk losing contracts, while those who can gain an edge.

Customers and talent expect more

Sustainability has shifted from a “nice to have” to a baseline business expectation.

• Consumers: 80% are willing to pay more for sustainable products (PwC, 2024).

• Talent: Younger employees consistently rank sustainability as a deciding factor when choosing employers.

• B2B buyers: Companies are 2.7 times more likely to trust suppliers with strong sustainability practices (Deloitte).
  

What this means for SMBs: Falling behind risks both sales and staff retention.

Opportunities: Cut costs now

Sustainability isn’t only about pressure. It can deliver immediate financial benefits.

• Energy efficiency can cut utility bills by up to 15% (IEA).

• Waste reduction lowers disposal costs.

• Smarter logistics can save fuel and time — UPS saved $400M by optimizing routes.

Takeaway: The same actions that cut emissions often strengthen your bottom line.

Opportunities: Stronger market position

Companies that act now can use sustainability as a differentiator.

• Preferred supplier: Meeting reporting requests makes you low-risk and future-ready.

• Competitive bids: Sustainability often accounts for up to 20% of RFP scoring.

• Brand trust: Transparent action builds credibility with clients and employees alike.

Takeaway: Sustainability can help you win more business — not just keep up.

Opportunities: New growth paths

Sustainability can also open doors to innovation.

• Packaging, logistics, and tech companies are already finding growth in greener solutions.

• Service providers with low-carbon operations are more attractive to conscious clients.

• Partnerships with industry groups or universities can place SMBs at the forefront of change.

Takeaway: Companies that embrace sustainability can unlock entirely new revenue streams.

What this means for your business in 2025

Regulations, supply chains, and customer expectations are converging on one clear demand: measure, reduce, and report your impact.

For SMBs, this pressure is also an opportunity. Businesses that adapt now will not only stay compliant but will also:

• Save money

• Win contracts

• Attract top talent

• Unlock new innovation

Sustainability is no longer optional. It’s how you stay competitive.

Next step: New rules and client expectations are already here. The SMB Sustainability Guide helps you see what matters most and how to prepare without feeling overwhelmed.