The SME Climate Hub is a left-of-center environmentalist group that seeks to encourage private businesses to make commitments to lower their “carbon footprints” by adopting certain environmental initiatives and supporting other environmental organizations and programs. The organization is a joint project of the We Mean Business Coalition, the Exponential Roadmap Initiative, and the United Nations Race to Zero campaign.
The organization claims that over 6,300 businesses in 110 countries have joined the “SME Climate Commitment,” which is a three-part public commitment to halve carbon emissions before 2030, cut emissions to zero by 2050, and share progress on a yearly basis. The group also offers software tools to allow companies to analyze their carbon footprints in collaboration with Oxford University and Normative, a software company. 1 2
Background
The SME Climate Hub was founded as an initiative of the We Mean Business Coalition, the Exponential Roadmap Initiative, and the United Nations Race to Zero campaign. The organization works in collaboration with software company Normative and the Net Zero team at Oxford University to provide tools and resources to allow small to medium-sized enterprises (SMEs) to “make a climate commitment, take action, and measure their progress towards emissions reductions.” 3
The commitment is open to small to medium-sized enterprises (SMEs) with fewer than 500 employees, and the SME Climate Commitment promoted by the SME Climate Hub is described as the “official pathway for small and medium-sized businesses to join the United Nations Global Race to Zero campaign.” 4
SME Climate Commitment
As of mid-2023, 6,335 businesses had joined the SME Climate Commitment in over 110 countries. The SME Climate Commitment is a three-part public commitment to halve carbon emissions before 2030, cut emissions to zero by 2050, and share progress on a yearly basis. Businesses with fewer than 500 employees are classified as small-to-medium enterprises are encouraged to join the commitment. According to the organization, companies are encouraged to “Signal your commitment to climate action and take the first steps towards halving your emissions before 2030.” The organization also notes that “SMEs that make the commitment will be counted in the global Race to Zero.” 5
The organization claims that advantages of joining the commitment include risk reduction, which will “Keep insurance and lending fees affordable and stay attractive to investors by reducing your exposure to climate-related risks” as well as cost reduction, operational sustainability, and growing a brand as a part of a “network of like-minded businesses.” 6
Affiliated Organizations
The SME Climate Hub is operated by the We Mean Business Coalition, the Exponential Roadmap Initiative, and the United Nations Race to Zero campaign. The group’s listed United States-based partners are the We Mean Business Coalition and America is All In. Corporate partners of the organization include MasterCard, Ericsson, Siemens, and HSBC. 7
Groups listed as “strategic knowledge partners” of the SME Climate Hub include Net Zero Climate, University of Oxford, University of Cambridge Institute for Sustainability Leadership, BSR, and the Banking Environment Initiative. 8
Other partners include Ikea, Unilever, Nestle, Microsoft, We Don’t Have Time, SME Finance Forum, Aspen Network of Development Entrepreneurs, United Nations Global Compact, and the International Chamber of Commerce. 9
References
- “How it Works.” SME Climate Hub. Accessed June 26, 2023. https://smeclimatehub.org/how-it-works/
- “SME Climate Hub.” Race to Zero. Accessed June 26, 2023. https://climatechampions.unfccc.int/team_member/sme-climate-hub/.
- “SME Climate Hub.” Race to Zero. Accessed June 26, 2023. https://climatechampions.unfccc.int/team_member/sme-climate-hub/
- “SME Climate Hub.” Race to Zero. Accessed June 26, 2023. https://climatechampions.unfccc.int/team_member/sme-climate-hub/
- “United States.” SME Climate Hub. Accessed June 26, 2023. https://smeclimatehub.org/us/.
- “United States.” SME Climate Hub. Accessed June 26, 2023. https://smeclimatehub.org/us/.
- “United States.” SME Climate Hub. Accessed June 26, 2023. https://smeclimatehub.org/us/
- “Partners.” SME Climate Hub. Accessed June 26, 2023. https://smeclimatehub.org/partners/
- “Partners.” SME Climate Hub. Accessed June 26, 2023. https://smeclimatehub.org/partners/