The EU’s Platform on Sustainable Finance (PSF) has introduced a voluntary “SME sustainable finance standard” aimed at helping small and medium-sized enterprises (SMEs) access sustainable financing more easily.
SMEs generate over 50% of the EU’s GDP and account for more than 63% of enterprise-related emissions but often struggle with financing barriers due to complex regulations and high compliance costs. The new standard simplifies sustainability disclosures, making it easier for lenders to classify loans as sustainable or transitional.
“Our new report offers a practical solution for SMEs facing a triple challenge: maintaining competitiveness amid the twin ecological and digital transitions, decarbonizing their operations, and accessing the finance they need to make this shift,” said Helena Viñes Fiestas, Chair of the PSF.
Initially focused on climate-related objectives, the standard will expand to include broader environmental and social safeguards. It also includes plans for a dedicated online tool to help SMEs assess eligibility and align with the EU Taxonomy—streamlining their path to green finance.
