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Climate action for SMBs
Scaling rapidly
in the three years since the launch of Sage Earth, which is now being used by hundreds of thousands of businesses
World's 1st
open-source hybrid emissions factors dataset, Carbon Commons, led by Sage, helps SMBs calculate carbon footprints using existing data
“SMBs are the lifeblood of much of the global economy, and hence play a critical role in moving towards a net-zero future. IDEO’s human-centered design approach was critical in understanding how best to support SMBs in this journey.”
Small- and medium-sized businesses—companies with fewer than 500 employees—make up about 90% of the world’s businesses, according to U.N.-backed SME Climate Hub.
Two thirds of small businesses don’t know how they’re going to reach net zero, and lack the resources to do so, according to a recent survey by SME Climate Hub. Still, the majority reported they want to act on climate, recognizing it can help them become a more resilient business.
Large companies may be the biggest emitters of greenhouse gasses, but an estimated 80% of those emissions come from supply chains—often made up of smaller enterprises.
For more than 40 years, Sage has helped businesses of all sizes navigate complex business environments. While many of its larger customers have the means and the structure to support climate initiatives, many of its smaller customers do not.
Sage wanted to help its SMB customers get ahead of future climate regulations and meet consumer expectations. And building carbon-footprint evaluation and mitigation tools would also dovetail nicely with Sage’s own climate aspirations: cutting its own emissions in half by 2030. Together, Sage and IDEO investigated how the company could leverage the data in its platform to calculate its customers’ emissions, both direct and indirect, and how that information could spur action as they aim to hit net zero.
To get started, the design team went deep with customers running all kinds of businesses—from a taxi company to a champagne bar to a falconry center. Business owners shared that their focus often has to be on the day-to-day, a series of small decisions that, when added together, lead to business success. For many, tackling a problem as complex as climate change felt overwhelming. IDEO and Sage synthesized those insights and began working across verticals and products, bringing together experts from marketing, technology, sustainability, and operations to build out new concepts. With the help of two carbon accountants, the team worked to figure out how existing data could inform customers about both their direct and indirect emissions, which can be harder to track. Given how tight SMBs’ margins are, they focused on how that knowledge could fuel emissions-cutting changes that also save money, giving businesses extra incentive to take action. Together, the team created a roadmap of customer outcomes and experience guidelines to help shape future products.
Sage has taken that work forward, launching Sage Earth, a platform that aims to help businesses measure, manage, and mitigate emissions—even across supply chains. With carbon accounting now built directly into all Sage Accounting and Sage for Accountants products in the UK, Sage has made climate action practical and accessible for millions of SMBs. By automating emissions measurement and reporting, Sage Earth removes barriers of cost and complexity, empowering business owners and their accountants to stay competitive in supply chains where up to 95 percent of emissions occur.
From co-developing the UK Voluntary SME Carbon Reporting Standard to launching a Carbon Accounting API, which gives banks, fintechs, and other platforms access to Sage’s Carbon Engine, Sage is embedding sustainability into the systems people already trust—helping hundreds of thousands (and rapidly increasing) small businesses turn climate ambition into everyday action.
Curious about how this kind of thinking could benefit your organization? We’d love to hear from you.
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