New UK SME Emissions Standard Launched to Tackle Data Burden and Unlock Green Finance
B4NZ and the Broadway Initiative unveil a practical, market-backed standard to streamline sustainability data sharing for SMEs, with strong cross-sector support from government, finance, and industry.
A new report launched today at the House of Commons unveils a practical solution to one of the biggest barriers facing small businesses in the net zero transition: the rising burden of sustainability related requests.
The report, From Burden to Benefit: Streamlining SME Data Sharing to Unlock Green Finance & Economic Incentives, introduces the UK SME Voluntary Emissions Standard, a proposal to simplify and standardise how small and medium-sized enterprises (SMEs) share emissions information. Designed with and for SMEs, the Standard aims to reduce duplication, improve trust, and unlock access to green finance and low-carbon supply chain opportunities.
SMEs make up over 90% of UK businesses and are responsible for nearly 50% of industrial emissions, placing them at the heart of both the UK’s economic engine and its net zero ambitions (Sage, 2024). Yet many SMEs face disproportionate challenges in engaging with sustainability, particularly around complex, inconsistent, and often duplicative data demands from banks, buyers, and regulators.
As large corporates and financial institutions respond to growing disclosure requirements, emissions data requests are increasingly passed down supply chains. Most SMEs lack the resources or systems to respond effectively, resulting in a system that delivers low-quality data for decision-makers and high administrative burden for SMEs.
The new Standard tackles this challenge head-on. Built around a “create once, share many” model, it introduces a consistent, credible, and proportionate approach to primary data collection, enabling SMEs to share first-hand emissions data in a format that works across both financial and procurement processes.
Developed through the SME Sustainability Data Taskforce, a joint initiative between B4NZ and the Broadway Initiative, the standard reflects input from over 50 organisations across finance, business, government, and civil society. It aligns with existing frameworks such as PPN 006 and introduces a four-point data quality scale to support trusted, high-quality data sharing.
The Net Zero Council considered the principles underpinning the SME Sustainability Data Taskforce’s work in May and agreed there is a need for a simplified emissions reporting standard for SMEs that aligns with international approaches and is developed in conjunction with data users. By supporting the need for the Taskforce’s work, the Council has helped set the tone for wider market adoption and show commitment to scalable, SME-friendly sustainability practices which will help SMEs to unlock commercial opportunities with larger businesses and finance organisations. The Taskforce will now leverage this support to encourage FTSE 250 businesses to engage with our summer consultation and participate in the adoption process, the outputs of which will be considered by the Net Zero Council.
The launch of the Standard marks the beginning of a wider effort to streamline sustainability reporting and unlock SME participation in the net zero transition. Backed by strong cross-sector support, the standard will now enter a national consultation and test phase over the summer, with the aim of embedding it across procurement and finance systems. As the UK aims to lead on green growth, this initiative makes one thing clear: trusted, consistent data is no longer a nice-to-have, it’s critical infrastructure for an inclusive, low-carbon economy.
To ensure the success of the UK SME Emissions Standard, we need a shared commitment from organisations across finance, industry, and government. This summer’s national consultation is your opportunity to help shape a practical, proportionate approach to emissions data that works for SMEs and their partners. Join us in building a trusted, consistent standard that reduces burden, unlocks green finance, and supports the UK’s net zero transition.
Hannah Cool, COO at B4NZ and Co-Chair of the SME Data Taskforce, said:
“SMEs are the backbone of our economy, but the current system asks too much from them and delivers too little in return. This Standard is about flipping that dynamic, reducing the noise, simplifying the process, and unlocking the trusted data needed to connect SMEs with green finance and future-fit supply chains. It’s a vital step toward making sustainability work for the many, not just the few.”
Scott Harrison, Director of Strategy and Innovation at Experian and Co-Chair of the SME Sustainability Data Taskforce, added:
“SMEs are central to economic growth, but too often face barriers to green finance due to fragmented data demands. This new Standard lays the groundwork for scalable, trusted infrastructure, helping integrate sustainability into financial systems and making it easier for SMEs to turn action into advantage. At Experian, we believe data should unlock opportunity, not add burden.”
Ed Lockhart, Convener of the Broadway Initiative, said:
“We developed the UK SME Standard with B4NZ to solve a real-world problem. SMEs are being pulled in multiple directions by overlapping data demands from both finance providers and corporate customers. This Standard creates a simple, credible way to align those requests, so that SMEs can report once with confidence and markets can act on consistent, high-quality data. It is a practical step toward unlocking finance, building greener supply chains, and smoothing the transition to clean energy for smaller businesses.”
The Report ‘From Burden to Benefit: Streamlining SME Data Sharing to Unlock Green Finance & Economic Incentives’ is available for free download at: https://www.bankersfornetzero.co.uk/publications/
