As 2026 begins, sustainability has firmly moved from a “nice-to-have” buzzword to a strategic business priority SMEs. Across industries, sustainability isn’t just about environmental stewardship, it’s increasingly tied to customer expectations, investment readiness, risk management, and long-term competitiveness. In fact, 88% of small businesses reported placing greater emphasis on sustainability in 2025 compared to the year before, indicating a strong upward trend in eco-friendly focus.

Why Sustainable Business Goals Matter

Consumers are more conscious of environmental and social issues than ever. A growing number choose brands that reflect their values, especially around climate action and responsible business practices. For SMEs, sustainability isn’t just good for the planet, it’s good for business. Companies that embed sustainability into their core strategy are 40% more confident in their future success than those treating it as a side project.

Moreover, SMEs collectively make up up to 60% of global business emissions, meaning their actions, or inactions, significantly shape progress toward climate targets.

Start With Clear, Measurable Goals

Setting effective sustainability goals requires clarity and measurability. Rather than vague targets like “being more eco-friendly,” SMEs should define specific, achievable objectives with timelines, such as:

• Reducing energy use by 15% by year’s end
• Cutting waste sent to landfill by 50% within 12 months
• Transitioning to 30% renewable energy sources by 2026

These kinds of measurable goals make it easier to track progress and report outcomes, which becomes more important as reporting expectations grow. According to recent research, 74% of public companies plan to invest in sustainability reporting technology to better collect, analyse, and manage ESG (environmental, social and governance) data, a trend that will increasingly influence SME supply chains and partnerships.

Practical Areas to Focus On

Here are some achievable areas for your sustainability goals:

1. Reduce Waste and Improve Efficiency
   A survey of SMEs found that 70% are already taking action to reduce waste, from recycling programs to paperless workflows. Simple actions like switching to digital invoicing or optimising inventory can cut both cost and environmental impact.
2. Build a Sustainable Supply Chain
   Nearly 38% of SMEs focus on sourcing locally or improving supplier sustainability practices; an effective way to reduce emissions tied to transport and production.
3. Adopt Sustainable Products and Packaging
   About 34% of small businesses have introduced eco-friendly products or sustainable packaging to appeal to customers and cut environmental footprints.
4. Use Digital Tools and AI
   Digital sustainability tools, including AI-powered carbon tracking, help you measure impact more accurately and can make achieving green finance easier. SMEs using these technologies are more likely to report sustainability data and secure funding to support further initiatives.

Align Sustainability With Growth

It’s worth remembering that sustainability and growth are not at odds. Research shows companies that prioritise sustainability often outperform peers on financial metrics and are better placed to attract customers, partners and talent. Setting sustainable business goals in 2026 doesn’t mean committing to perfection overnight. Instead, it’s about starting with realistic, measurable objectives that align with your values and customer expectations. With clear targets, the right tools, and a willingness to innovate, sustainability can become a competitive advantage that fuels both environmental impact and business success.

The post 88% of Small Businesses Increased Their Focus on Sustainability in 2025- Here’s How to Set Your New Year Goals appeared first on Small Business Connections.

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