News: Granary of Solutions platform launches to boost global sustainable initiatives. Read it here.
Parts of this site were translated using AI. Accuracy may vary.
News: Granary of Solutions platform launches to boost global sustainable initiatives. Read it here.
Parts of this site were translated using AI. Accuracy may vary.
Innovation, climate entrepreneurship and small and micro businesses
This solution area focuses on buyer-led supplier decarbonization support for Micro, Small, and Medium Enterprises (MSMEs). Such solutions equip smaller suppliers with tools for disclosure, target-setting, and training, paired with sustainable supply chain finance that rewards performance. Together, these measures cut Scope 3 emissions and help scale climate-smart entrepreneurship.
How this solutions relates to the action agenda
Axis: Unleashing Enablers and Accelerators including on Financing, Technology and Capacity-Building
Key Objective: Innovation, climate entrepreneurship and small and micro businesses
Supply chains make up the majority of corporate carbon footprints. Enabling MSME suppliers to measure, disclose, and access performance-linked finance drives rapid and scalable Scope 3 abatement while strengthening resilience. Buyer–supplier programs and sustainable supply chain finance also reduce risk, lower costs, and open markets for smaller firms, advancing national climate commitments and just transitions. This approach turns procurement into a lever for innovation across entire value chains.
Sources:
[1] CDP, 2024, Corporates’ supply chain scope 3 emissions are 26 times higher than their operational emissions. https://www.cdp.net/en/press-releases/corporates-supply-chain-scope-3-emissions-are-26-times-higher-than-their-operational-emissions', '[2] International Finance Corporation, 2025, Global Trade Supplier Finance. https://www.ifc.org/en/what-we-do/sector-expertise/trade-and-supply-chain-finance/global-trade-supplier-finance', '[3] CDP, 2024, CDP report reveals untapped business gains of USD165 billion from tackling supply chain climate risks. https://www.cdp.net/en/press-releases/cdp-report-reveals-untapped-business-gains-of-usd165-billion'] [4] According to CDP, those that actively manage supply chain emissions have saved US$13.6 billion such as low-carbon energy generation and energy efficiency. (CDP, https://www.cdp.net/en/insights/strengthening-the-chain 2024), [5] Suppliers that receive training and support are 2.6x more likely to set science-based climate targets. (CDP & HSBC report, https://cdn.cdp.net/cdp-production/cms/reports/documents/000/007/890/original/CDP_HSBC_Report_2024.pdf 2024), [6] 72% of businesses (that responded to CDP annual questionnaire in 2024) are already engaging with their suppliers (PwC https://www.pwc.com/us/en/services/esg/library/decarbonization-strategic-plan.html , 2025). However, only 17% of the SMEs (that responded to the SME Climate Hub survey) have been asked by corporate customers to reduce emissions. (SME Climate Hub https://smeclimatehub.org/2024-survey-download/ , 2024)
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