Europe’s 23 million small- and medium-sized enterprises (SMEs) are the backbone of the continent’s economy, representing 99% of all businesses and over half of EU GDP. Yet, a new report from the Solar Impulse Foundation, a nonprofit organisation promoting efficient solutions and clean energy and global energy technology leader, Schneider Electric (via the Schneider Electric Foundation’s partnership with Solar Impulse Foundation), reveals that only 11% of SMEs have made substantial sustainable investments, despite the enormous potential for cost savings, resilience and competitiveness.
Europe aims to raise its electrification rate from 21.3% to 32% by 2030, but urgent action is needed. With 40% of the continent’s electricity grid being over 40-years-old and €584 billion in grid investment required by the end of the decade, modernisation of its infrastructure to cope with this ambition is critical.
The report, Unlocking SME Competitiveness in Europe, highlights that electrification and digitalisation can cut energy use by 20-30% and reduce CO2 emissions by up to 40% in key sectors, unlocking billions in untapped value by 2030. While 93% of SMEs have implemented at least one resource-efficiency measure, only a quarter have adopted comprehensive carbon-reduction strategies.
“Europe’s industrial future is at a crossroads, particularly when we see the untapped role that SMEs can play in solving our energy challenges and in driving competitiveness. Electrification and digitalisation are not ambitions; they are imperatives”, said Laurent Bataille, Executive Vice President of Europe Operations at Schneider Electric.
