Small and medium enterprises (SMEs) are the backbone of the economy. While the individual impact of SMEs is small, their collective contribution is substantial. As Michael Schaper, business studies professor at Curtin University, writes, “SMEs typically represent about 95 percent of all private sector firms in most modern nations, and so form a major portion of all economic activity.” The role these small firms play is a key part of the sustainability debate.
It is a sentiment echoed by Mr. Eric Paulsen, General Manager of TÜV SÜD Indonesia. Mr. Paulsen added, “If SMEs adopt sustainable policies, it will lead to reduced emissions and greener business practices. Reducing energy consumption or opting for clean energy supply not only boosts the image of the company, but also reduces cost and increases profitability.”
However, it is only recently that there has been an upward trend in SMEs adopting green business practices.