Small and medium-sized enterprises (SMEs) drive over 50% of the EU’s GDP and are responsible for 63% of enterprise emissions, yet they face significant hurdles in accessing sustainable finance due to regulatory complexity, high loan thresholds, and compliance burdens.
To tackle these challenges, the Platform on Sustainable Finance (PSF) has introduced a voluntary “SME Sustainable Finance Standard”, designed to:
Key Objectives:
- Simplify sustainability disclosures for SMEs, reducing administrative complexity.
- Facilitate access to sustainable finance, ensuring easier loan approval processes.
- Enable clear classification of SME loans as sustainable or transition finance, increasing transparency for investors and financial institutions.
Initially centered on climate-related sustainability, the standard is expected to expand over time, providing SMEs with the financial tools necessary to accelerate Europe’s green transition. The initiative aims to strike a balance between sustainability ambitions and practical financial accessibility, ensuring SMEs remain competitive while contributing to the EU’s environmental goals.
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