Episode 96 | 15.5.2025

Why SMEs Hold the Key to a Greener Future

It’s easy to imagine climate action as the domain of sprawling corporates, global brands, and powerful institutions. But according to Kat Christopoulos — Chartered Energy Engineer, sustainability consultant, and Head of ESG at Cloudfm — that’s not where the real leverage lies.

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In a world teetering on ecological tipping points, Kat is betting on something smaller, more agile, and often overlooked: the SME.

“Each small business is part of a bigger business,” Kat says. “And if we’re going to shift the system, this is where it starts.”

 

🧩 Why SMEs Matter More Than You Think

Kat’s experience spans some of the biggest names in finance, tech, and facilities management — from Barclays to ISS. But it’s through working with small and medium-sized enterprises that she’s seen the most rapid, tangible change.

SMEs:

  • Are closer to their people, suppliers, and communities

  • Can make big changes without long bureaucratic chains

  • Often have leaders directly involved in sustainability decision-making

  • Can drive transformation up the supply chain, influencing bigger players

“I helped a relocation company switch from diesel to hydrotreated vegetable oil (HVO). Overnight, they cut emissions by 90% — and it took one conversation with the CEO.”

 

📉 What’s Holding SMEs Back?

Despite the potential, many SMEs are still lagging behind. The barriers Kat identifies are both structural and cultural:

  • ❌ Limited budgets

  • ❌ Lack of in-house expertise

  • ❌ Unclear standards or frameworks

  • ❌ Misconception that ESG is a luxury, not a necessity

She argues that the watering down of CSRD reporting requirements for SMEs is a missed opportunity. “Ironically, they’re the ones who would benefit most from frameworks like double materiality. It helps them understand where they should act — and why it’s not just about carbon, but risk, resilience, and opportunity.”

 

📈 Small Businesses, Big Influence

Kat is clear: action at the SME level doesn’t just result in smaller footprints. It creates pressure from below, challenging larger corporates to evolve.

“It’s not just about compliance. It’s about value creation. SMEs can offer sustainable products and services that make their clients’ ESG strategies easier.”

Think: sustainable relocation services, circular supply chain solutions, low-carbon facilities support — all being developed by nimble, purpose-led SMEs.

 

🌱 A Personal Model for Systems Change

Kat now balances her consultancy work with local sustainability projects in Spain — including drought-resilient garden design. The personal connection with nature keeps her work grounded and energised.

“There’s no growth in the comfort zone. You have to do the hard thing. That’s how change happens — in businesses and in life.”

And what does her magic wand moment look like?

“If I could change one thing, it would be to instil ethics and a sense of responsibility in every business leader. That’s when real change happens — when leadership walks the talk.”

 

Integrity in Action


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© 2025. The Responsible Edge Podcast

© 2025. The Responsible Edge Podcast