Small and medium-sized enterprises (SMEs) play a critical role in the global economy, contributing significantly to employment, innovation, and supply chains. Yet, when it comes to carbon accounting, SMEs often find themselves held back by misconceptions that hinder their ability to take meaningful climate action. Addressing these misconceptions isn’t just about compliance or satisfying stakeholders — it’s about building resilient, future-proof businesses in an era of growing environmental expectations.
In this article, we’ll debunk five of the most common misconceptions about carbon accounting for SMEs and provide actionable insights to help your business start or enhance its sustainability journey.
1. “Carbon accounting is only for large corporations.”
The Reality: Carbon accounting is relevant for businesses of all sizes. Customers, investors, and regulators are increasingly asking SMEs to disclose their carbon footprint. These stakeholders recognize that climate action must extend across entire value chains, making SMEs’ data critical for broader sustainability goals.
Why It Matters: By proactively engaging in carbon accounting, SMEs can strengthen their position in supply chains, improve relationships with customers, and demonstrate leadership on sustainability. For instance, SMEs that supply larger corporations often find themselves subject to sustainability assessments. Being prepared with accurate carbon data can make the difference between securing a contract and losing out to a competitor.
Action Tip: Start small with a basic emissions inventory focused on Scopes 1, 2, and the most relevant parts of Scope 3. Free tools and platforms, like Persefoni Pro, can make this process manageable. You don’t need to be perfect on day one; the goal is to begin tracking and building a culture of accountability.
2. “It’s too complex and resource-intensive.”
The Reality: While carbon accounting can seem daunting (at first), modern tools and streamlined frameworks have made it much simpler. Many solutions are designed with SMEs in mind, offering intuitive processes and automation that reduce complexity and save time.
Why It Matters: Avoiding carbon accounting due to perceived complexity can result in missed opportunities for cost savings, regulatory compliance, and competitive advantage. For example, identifying inefficiencies in energy use can lead to cost reductions while also lowering emissions.
Action Tip: Leverage user-friendly platforms that offer guided workflows. Many solutions also provide safe assumptions for harder-to-collect data, allowing SMEs to start quickly and refine over time. Training team members on these tools and setting up clear workflows can further simplify the process.
3. “It’s too expensive for a small business like mine.”
The Reality: The cost of carbon accounting has decreased significantly, with free or low-cost tools now available to SMEs. Moreover, the benefits often outweigh the costs, as carbon accounting can reveal efficiency improvements and cost-saving opportunities.
Why It Matters: Companies that delay due to cost concerns risk losing out on contracts or investments tied to sustainability criteria. Additionally, early action can reduce the financial burden of future regulatory compliance. Being proactive can also enhance your reputation, helping attract environmentally conscious customers and partners.
Action Tip: Start with free tools like Persefoni Pro to calculate your carbon footprint at no cost. Focus on identifying high-impact areas for emissions reductions and explore grants or funding options that support sustainability initiatives.
4. “Our emissions are too small to matter.”
The Reality: While an SME’s individual emissions may be small compared to larger companies, their cumulative impact is significant. SMEs collectively contribute a substantial share of global emissions, and their efforts are essential to achieving climate goals.
Why It Matters: Stakeholders, including large customers and investors, care about transparency across the value chain. Demonstrating accountability and action can strengthen your reputation and attract new opportunities. Moreover, being a small emitter doesn’t exempt you from future regulatory requirements or customer demands.
Action Tip: Focus on the areas where your business has the most influence, such as energy usage, transportation, or materials sourcing. Every step toward reducing emissions contributes to the bigger picture. Partnering with like-minded suppliers can help amplify your impact.
5. “Carbon accounting doesn’t align with my business goals.”
The Reality: Sustainability is increasingly intertwined with business success and value creation. Carbon accounting can drive innovation, enhance brand value, and prepare your business for future regulations, aligning directly with long-term growth and resilience.
Why It Matters: Businesses that integrate sustainability into their operations are better positioned to meet shifting market demands, access new funding opportunities, and build customer loyalty. Ignoring carbon accounting could mean falling behind competitors who are leveraging it as a strategic advantage.
Action Tip: Frame carbon accounting as an investment in your company’s future. Start by identifying shared goals, such as cost savings or competitive differentiation, to build internal buy-in. Engage employees and stakeholders in the process to create a culture of sustainability within your organization.
A Real-World Example: Brown&Co’s Sustainability Journey
Brown&Co, a UK-based real estate company specializing in property consultancy, rural estate management, and agricultural advice, serves as an inspiring example of how SMEs can overcome barriers to carbon accounting. Facing growing regulatory requirements, heightened stakeholder demand, and an internal commitment to sustainability, the team knew they needed to address their emissions but weren’t sure where to begin.
In 2024, Brown&Co leveraged the free Persefoni Pro platform to measure their carbon footprint for the first time. The intuitive platform allowed them to calculate their emissions quickly and efficiently, using easily accessible data. By simplifying the process, Persefoni helped the team overcome initial challenges like fragmented utility data and the perceived complexity of scope 3 emissions.
“Persefoni simplified something I thought I was going to spend weeks on. Since then, it’s refocused us on what we’re going to do next,” said Alton Nutile, Brown&Co’s Director of Commercial Operations.
The decision to measure emissions was driven by three key factors:
- Regulatory preparedness: Anticipating future climate disclosure regulations, such as Streamlined Energy and Carbon Reporting (SECR), Brown&Co wanted to stay ahead of the curve.
- Client expectations: Demonstrating climate leadership aligned with their role as environmental advocates for their clients.
- Ethical responsibility: Addressing their carbon impact was the right thing to do for the planet.
Using Persefoni Pro, Brown&Co gained confidence in their data and developed a clear baseline for their emissions. This empowered them to set reduction targets, form an environmental subcommittee, and pursue ISO14001 certification. Persefoni’s combination of advanced technology and expert support ensured Brown&Co’s journey was both manageable and impactful.
The takeaway: SMEs like Brown&Co can overcome the perceived barriers of carbon accounting with the right tools and mindset. By starting small and focusing on achievable steps, they set themselves on a path to long-term sustainability success.
Why Act Now?
Carbon accounting isn’t just a compliance exercise; it’s a strategic tool for growth, innovation, and resilience. The world is moving toward greater environmental transparency, and SMEs that act now will be better prepared to navigate these changes. By addressing these misconceptions and taking proactive steps, SMEs can unlock new opportunities, meet stakeholder expectations, and contribute meaningfully to global climate goals.
Getting Started: Whether you’re taking your first steps or refining your approach, carbon accounting can be manageable and impactful. Start by identifying your key emissions sources, setting achievable goals, and leveraging tools designed for SMEs. The benefits — from cost savings to improved stakeholder relationships — are well within reach.
Ready to take the first step? Start calculating your carbon footprint today with tools designed for SMEs, like Persefoni Pro, and join the movement toward a more sustainable future.
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