Green and Resilient MSMEs

SMEs, including micro enterprises, are increasingly affected by climate change and environmental degradation. More frequent extreme weather conditions, increasing heat stress, resource scarcity and the legislative and regulatory action driving the shift towards a more environmentally sustainable economy have significant implications on the resilience, productivity and profitability of SMEs, which are vital for economic development and decent work.

In this context, SMEs are facing challenges adopting green practices and seizing new green opportunities due to limited access to knowledge, technologies, finance and market opportunities. This prevents many SMEs from making their full contribution to the transition towards a net-zero future.

The ILO SME Unit is working to ensure that SMEs benefit from and contribute to a Just Transition. This requires a systemic approach and a range of services to not only uplift but empower entrepreneurs and SMEs, in the formal and informal economy, to overcome existing barriers and thrive in green and inclusive economies. Together with governments, social partners and other stakeholders, the Unit seeks to support SMEs in:

• Leveraging or adopting environmentally sustainable business practices;
• Strengthening business resilience to climate change and environmental shocks and challenges; and
• Innovating and seizing business opportunities focusing on green sectors and value chains, and the circular economy.

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