Small and medium enterprises (SMEs) are essential to achieving net-zero. Collectively they make up approximately 99% of South Yorkshire’s businesses and account for 13% of global carbon emissions, consuming 50% of commercial and industrial energy. Yet, despite their aggregate economic and employment significance, SMEs are underrepresented in policy and just transitions debates.
SYSC’s SMEs and Just Transitions project wanted to understand what a just transition means for (SMEs) in South Yorkshire. We explore that here through two case studies produced for the SYSC Consolidated Research Report, one focussing broadly on ensuring a just transition for SMEs and another looking more specifically on small-scale horticulture growers in the region.
Key Insights:
Our UK-wide research, explored in the “Ensuring a Just Transition for Small and Medium Enterprises” case study, shows that SME decarbonisation is shaped by diverse relationships – such as landlords, supply chains and intermediaries – and that businesses face highly varied challenges depending on sector, size and organisational characteristics. Some SMEs, particularly those serving or comprised of vulnerable or marginalised communities, lack access to existing support and risk being left behind. To address this, we developed an operational framework that enables policymakers to diagnose different types of vulnerability, identify intervention points, and tailor support to specific groups of SMEs rather than relying on generic, one‑size‑fits‑all programmes.
For South Yorkshire, these insights highlight both the scale of the challenge and opportunities for regional leadership. The region’s manufacturing base increases the urgency for coordinated action, but existing support remains dispersed and limited in reach. Policy recommendations focus on building a coherent, place‑based strategy; establishing a regional SME decarbonisation steering group; using the just transition framework to identify and engage under‑represented businesses; and working through diverse intermediaries - from accountants to community organisations - to reach vulnerable firms. Strengthening regional capacity could include creating a one‑stop‑shop to link SMEs with local solution providers, coordinating sector‑specific support, and investing in climate literacy and skills provision across the further and higher education sectors. Policymakers should also recognise SMEs’ wider roles as enablers and influencers of climate action, for example through programmes that support SMEs as climate citizens.
The importance of agency, the ability to participate in decision making and accessible support was also evident in SYSC research that focused specifically on micro- and small scale growers in the region. The “Case of Small-Scale Horticulture Growers in South Yorkshire Area” case study conducted fieldwork in rural and peri-urban areas around South Yorkshire to understand the decarbonisation journeys for small growers and asked how these pathways could be designed so that they were fair-for-all. The research found that there was a need for greater inclusion in sustainability and decarbonisation policy and regulatory frameworks. Study participants noted their distinct characteristics which brought specific challenges due to their size. Growers made an urgent call for a greater focus on the ways they operate, as well as on the vital role they play at ensuring a more sustainable agri-food system, and supporting the local economy.
View the case studies in full below
Read the case studies in full below:
