A new report by the Solar Impulse Foundation and Schneider Electric states that only 11 percent of European SMEs invest substantially in sustainability. Electrification and digitisation can significantly reduce energy consumption and lower emissions in sectors, according to the report.
European SMEs are not sufficiently exploiting their potential for electrification and digitisation. This is according to the report Unlocking SME Competitiveness in Europe by the Solar Impulse Foundation and Schneider Electric. The study points out that SMEs represent 99 percent of all European companies. They also account for more than half of the EU’s GDP. Yet, according to the report, only 11 percent made “substantial” sustainable investments.
The authors estimate that electrification and digitisation can reduce energy consumption by 20 to 30 percent. In certain sectors, CO2 emissions can fall by up to 40 percent. This could unlock “billions in untapped value” by 2030, the report states.
Gap between quick wins and CO2 strategy
The report distinguishes between individual measures and broader plans. For example, 93 percent of SMEs would have taken at least one efficiency measure. Think of more economical equipment or better energy management. But only a quarter would have developed an extensive CO2 reduction strategy.
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Schneider Electric links this to competitiveness and cost control. Laurent Bataille, responsible for Europe at Schneider Electric, calls electrification and digitisation “a necessity”. He points to the need for rapid implementation and broad application among SMEs.
Network investments and policy recommendations
The study also places this transition in a broader context. Europe wants to increase the electrification rate from 21.3 to 32 percent by 2030. At the same time, according to the report, 40 percent of the European electricity grid is older than 40 years. Network investments of 584 billion euros would be needed by the end of this decade.
According to the report, SMEs remain particularly vulnerable to energy price shocks. Their scale is smaller and their bargaining power is more limited. The report therefore calls for policy measures, including: finalising the revision of the European Energy Taxation Directive, simplifying permits and grid connections, strategically using public funds to make projects less risky, and supporting models such as Energy-as-a-Service and cooperative purchasing.