SMEs take the lead in region’s ‘green growth’ says new report

Small and medium sized firms in the region have increased their ‘green growth’ engagement in the last year, according to joint research published by East Midlands Chamber and the University of Derby.

Now in its tenth year, ‘Green Growth Trends in the East Midlands’ tracks and analyses awareness and engagement with green growth, decarbonisation and the uptake of nature-based solutions.

According to the latest report, decarbonisation take-up has risen 2.7% since 2024 and is now adopted by nearly half (48.1%) of East Midlands firms, while nearly the same number of firms now derive sales from ‘green goods and services’, with a 3.3% increase over the last year.

Engagement in green growth – environmentally sustainable economic growth – has also tripled among East Midlands businesses since the research began in 2015.

Richard Blackmore, the chamber’s director of policy and insight, said: “The sizable lift in the number of firms addressing sustainability goals, actively pursuing green growth shows East Midlands businesses are bringing the journey toward net zero higher up their list of priorities.

“That is encouraging to see and something the region can be proud of.

“Smaller and medium sized firms have really stepped up and are embracing the opportunities presented by either having a good decarbonisation strategy in place or starting out and considering what that might look like.

“It’s never too late to get going with approaches to sustainability so businesses are clearly becoming more aware of the benefits, such as boosting reputation, attracting talent to work for them, reduction of energy costs and preparing for a cleaner future.”

Dr Polina Baranova, associate professor of strategy and sustainability at the university’s Derby International Business School, said: “The report findings paint a complex picture of green growth trends of the region.

“Green growth is multifaceted and reflects challenges of sustainable transition: building strong markets for green goods and services, investment in decarbonisation, green skills gaps, uptake of nature-based solutions and collaboration for green growth.

“The report illustrates the fragility of green growth in the face of political and economic pressures.

“It calls for policy and effective place-based governance structures to support green businesses.

“There is a need for stable and clear policy that allows businesses to invest in green growth and champion sustainable business models.”

To view the full Green Growth Trends in the East Midlands report for 2025 click here.