Still sustainable! Why SMEs won’t give up on ESG

European SMEs adopting ESG (Environmental, Social, and Governance) practices continue to benefit from them. Despite perceived barriers, their commitment and numbers remain steady. However, to accelerate this trend, they are calling for stronger public incentives.

This was the key message from Francesco Perrini and Manlio De Silvio in Brussels, as they presented the fourth edition of the Generali SME EnterPRIZE White Paper during Generali’s award ceremony recognizing SMEs that behaved like “heroes” of sustainability.

Generali SME EnterPRIZE is a project designed to promote a culture of sustainability among European SMEs. It aims to inspire SMEs to develop sustainable business models and foster debate on the topic, including through a white paper produced by the Sustainability Lab at SDA Bocconi School of Management.

An analysis of 1,260 European SMEs reveals remarkable resilience in the sustainable transition, with ESG adoption rates holding steady at 44% despite growing implementation challenges.

“What emerges with particular clarity is the evolution of the ESG business case since financial benefits are increasingly complementing well-established environmental and social advantages. Companies that have adopted sustainable practices are experiencing significant improvements in credit conditions (+8%) and insurance terms (+10%), signaling growing market recognition of ESG value,” said Perrini, Director of the Sustainability Lab.

However, significant barriers persist that require targeted interventions, particularly for smaller SMEs that show lower adoption rates compared to medium-sized enterprises.

“Our study highlights the urgent need for proportionate and differentiated support mechanisms that can effectively address the diverse needs of the European SME ecosystem,” concluded De Silvio.