Green transition: opportunities and challenges for small and medium-sized enterprises – a new report by Santander Bank Polska
The green transition presents not only challenges but also opportunities for small and medium-sized enterprises. A new report by Santander Bank Polska, “The Green Transition and SMEs: How to Gain a Competitive Edge,” shows that by making the necessary changes, the SME sector can strengthen its market position and build lasting business relationships within the supply chain.
The green transition remains a key element of Europe’s strategy to achieve climate neutrality by 2050. This process will involve huge investments. According to the Polish Energy Policy until 2040 (PEP2040), the implementation of energy projects necessary for the decarbonization of the economy will cost up to 1.6 trillion PLN.
SMEs and the challenges of sustainability
Notably, the requirements for implementing environmentally friendly changes are not only imposed on large companies. They also apply to small and medium-sized enterprises, which are prevailing in our country. Their significance for the Polish economy is growing every year. According to last year’s data from the Central Statistical Office, there are nearly 43,500 SMEs operating in our country. They employ over 2.1 million people and generate over 1.1 trillion PLN in revenue.
The report “Green Transition and SMEs – How to Gain a Competitive Edge?” prepared by Santander Bank Polska shows that the adoption of sustainable development principles does not have to be an unpleasant necessity resulting from regulations. On the contrary, it can be a real added value for business. The authors argue that these changes should be approached as a strategic direction that can bring sustainable development to the company, increase operational efficiency, open up new markets and strengthen the company’s reputation.
The report also provides practical tips on how companies can effectively implement sustainable measures in their business. Examples of strategies and tools to help create products and services are discussed, as well as specific case studies from companies operating in the food, automotive and plastics industries. For some companies, the transition involved thermal retrofitting of buildings, for others it meant purchasing energy-efficient machinery, and in other cases it was about processing waste for reuse.
Santander Bank Polska offers financial and advisory support
The Santander Bank Polska report shows that SMEs have the opportunity to leverage the changes taking place to strengthen their position in the market. The key thing, however, is to start acting now. So far, only one third of business owners intend to pursue decarbonization goals, as our research shows. On the other hand, the same percentage of people believe that their company's operations do not have a significant impact on the climate. That is why education is so important. Business needs to be made aware that the green transition is really profitable. Investing in sustainable development and environmentally friendly technologies can not only improve competitiveness, but also minimize the risk associated with climate regulations. Santander Bank Polska offers financial and advisory support to help companies navigate this process. It also provides free tools, such as a carbon footprint calculator to help companies estimate and generate a carbon footprint report.
Small and medium-sized enterprises in Poland are facing a unique opportunity related to the transition towards sustainable development. Adapting sustainable practices not only strengthens social and environmental responsibility, but also paves the way for long-term success and building a competitive advantage. As key participants in global supply chains, SMEs can significantly increase their operational efficiency and strengthen their reputation in the market. KPMG's analyses confirm that this is a real possibility – some companies have already recognized the potential of sustainable development and are successfully exploiting it.
In our experience, many companies are afraid of the challenges associated with sustainability. However, the report shows that this megatrend can become a lever for development - it stimulates the search for innovation in products, business models and the supply chain. It also helps build resilience to key environmental and social risks. Therefore, it is not a painful duty, but an investment that can bring measurable business, social and environmental benefits.
As data from the National Bank of Poland shows, the SME sector in Poland is still approaching the green transition with a great deal of caution. As many as 70% of the companies surveyed have not yet started using renewable energy, and almost 60% have not changed and do not plan to change their energy mix.
Green transition – an opportunity for success
According to the authors of the report “Green Transition and SMEs – How to Gain a Competitive Edge?”, sustainable development poses a number of challenges for small and medium-sized enterprises – both regulatory and market-related. However, companies that decide to invest in new technologies and optimize their processes can benefit greatly from this process. Properly implemented changes will help them reduce operating costs and improve competitiveness through effective energy and resource management. Companies that adapt to the requirements of sustainable development will not only gain a competitive market edge, but will also build a positive image in the eyes of consumers and investors. The green transition may also increase the chances of small and medium-sized enterprises to obtain additional funding on preferential terms.
The full report “Green Transition and SMEs – How to Gain a Competitive Edge?” prepared by Santander Bank Polska in cooperation with KPMG can be downloaded at https://www.santander.pl/lp/zielona-transformacja.
