Impact finance white paper reveals the trillion-dollar prize for SMEs in the UK and beyond

Today at the NEST Climate Summit, the flagship event of Climate Week New York City, a groundbreaking white paper (‘Scaling Private Company Impact Finance’) has been launched that explores the gap between the huge levels of sustainable global finance and the limits that SMEs face accessing those funds because of regulatory barriers, lack of access tools, and systemic bias against smaller companies.

The reality is that SMEs make up over 90% of business on the planet and employ more than half of the world’s workforce, and yet less than 10% of sustainable or impact finance makes its way to those companies.

I’ve been privileged to represent SEC Newgate as a member of the Impact Disclosure Taskforce SME Subgroup and work alongside a fantastic team of global business leaders under the combined leadership of the Co-Chairs Michele Bongiovanni and Matt Helgeson. The team has examined the evidence, dissected the problems, and provided some actionable conclusions with work focused around the global workstreams of impact finance ecosystems, sustainable data & AI, SME tools & education, innovation labs, and sustainable fintech.

This work echoes the commitment from the British Government to make the UK the sustainable finance capital of the world, as outlined by Energy Secretary Ed Miliband at London Climate Action Week in June. Support from investors and corporations included key statistics that 70% of FTSE-100 companies had adopted key elements of transition planning on a voluntary basis and survey data that showed 84% of UK-based financial institutions are more likely to invest in companies with these plans in place. So, how do we connect those SMEs with the opportunities and support?

Taking this discussion right back to the basic ingredients (and I come at this from a natural pro-business starting point), when owners and managers of SMEs get up in the morning, their first objective is to run a successful business and hopefully make a profit to pay their own bills and support their families. If they can weave their way through the forest of regulations, restrictions, taxes, and reporting requirements and still make a successful business, they will (and should rightly) feel very satisfied. 

In that process, most business owners would also be happy if they finish the day with a business that has made a positive impact to the society or the planet, or at least not made things worse. But their time is precious, and their first focus is often their own survival rather than taking on more burdens and helping others – a perfectly natural instinct. 

However, what if the very act of doing good - of manufacturing sustainably, employing fairly, trading ethically, or communicating honestly – was not only a bolt-on task but a means of driving business success? The SEC Newgate Responsible Business report provides an annual snapshot of public attitudes to ESG topics in the UK and around the world and the 2025 research found a significant growing expectation from the public that they expect the companies they buy from or invest in should play a more active role in society, act to improve sustainability and reduce environmental harm and support local communities.

This white paper discovers that there are billions of pounds of finance and capital to support SMEs who can demonstrate their positive impact – they simply need a system that affords them the same level playing field and fairness that they afford their customers, suppliers and trading partners. In the process, if their business activities make a positive impact to society and the planet then everyone is a winner.

Political debate around terms like sustainability, impact,and some of the quietly whispered acronyms (such as ESG) is centred on how individuals and businesses suffer when we talk about the imposition of restrictions, the compulsion of requirements and the loading of burdens and taxes on people who are trying to their best. This is a fair concern but the way round it is neither to do everything all at once or do nothing and hope all the problems go away. The solution is to look at how business can do good, have a positive impact and, from that very act, become more successful and more profitable. The data is already there that customers will increasingly follow the good actors on the stage, and if improved capital access opens the door for banks, corporates and investors to better connect with SMEs, then this can be a win-win outcome for business, people and the planet.

Unfortunately, I’m in Manchester instead of Manhattan today (not to detract from the greatness of Manchester of course) but SEC Newgate UK is well represented by my colleague Tim Le Couillard. Get in touch if you are in NYC and would like to meet up with Tim, or if you have any other questions about the white paper.

SEC Newgate UK helps organisations build their reputation as a responsible business and meet the risks and opportunities that come from macro trends such as climate change, generational shifts in expectations of business, activism and demands for businesses to deliver positive impact and performance beyond the balance sheet. If you need to discuss how we can support you, get in touch with Andrew Adie or any of our team.

https://www.idtsme.org/