From Insight to Action: What the Willow Review Means for SME Sustainability

Small and medium-sized enterprises (SMEs) are the backbone of the UK economy, accounting for over 99% of all businesses, 60% of UK employment and 48% of business turnover. Their collective influence on emissions, resource use, and resilience is enormous, yet often overlooked in sustainability policy and practice as the spotlight is often on larger businesses.

The Willow Review, published in June 2025, offers a comprehensive roadmap for UK SMEs to harness sustainability as a driver for growth, efficiency, and customer engagement. Drawing on consultations with SMEs and industry experts, the review highlights the untapped potential in small business leadership on climate and sustainability and offers fourteen recommendations across four key areas:

• Making sustainability simple and accessible.

• Improving support across financial services and government.

• Creating a landscape of success.

• Financing the future.  

This article expands on those points, connecting them to wider trends in business, finance, and public policy. It offers practical guidance for SMEs seeking to build a greener, more competitive, and resilient future.

1. Create a 5-Point Plan for Sustainability That Works for You

The Review emphasises simplicity and clarity. It recommends a five-point plan that any SME can begin implementing:

1. Switch to sustainable materials.

2. Reduce travel and optimise logistics.

3. Minimise waste.

4. Take action on energy.

5. Partner with sustainable suppliers and customers.

In the past, these actions would have been considered by many as ‘nice-to-haves’, but today they deliver measurable business benefits. For example, switching to recycled or certified materials can reduce supply chain risk and enhance brand value. Better logistics planning saves fuel and time. Circularity (repair, reuse, remanufacturing) reduces waste disposal costs and appeals to eco-conscious consumers. And the list goes on.

Tip: Think about what you are already doing to implement sustainability practices within your business. How are you communicating what you are doing and/or your credentials? Are you raising awareness through story telling or are you silently focusing on the ‘day job’?

2. Join a Network – Don't Go It Alone

Sustainability is not a solo journey; it is about building communities. Peer networks, trade associations, and local enterprise partnerships (LEPs) offer critical support for SMEs on their decarbonisation pathway. The Review highlights how SMEs that participate in mentoring programmes or sustainability networks tend to progress faster and avoid making the same mistakes. These networks facilitate:

• Access to shared tools and templates.

• Learning from sector-specific case studies.

• Collaboration on joint projects or procurement.

Tip: Contact your local Council and/or Chamber of Commerce and find out if they have a Sustainability Group whose membership includes likeminded businesses keen to network, share advice and support. If you can’t find one, attend a local ‘People, Planet, Pint’ social networking event.

3. Make the Most of Government Support – and Ask for More

Many SMEs feel left out of sustainability schemes, especially compared to larger companies. The Review urges both national and local governments to make support more visible, accessible, and tailored. Key proposals include:

• Appointing Sustainability Champions within local authorities to serve as dedicated contacts for SMEs.

• Reframing sustainability not as red tape, but as a route to profitability, growth, and competitive advantage.

• Better signposting of grants, procurement opportunities, and transition funding.

Tip: Connect with your local authority to explore what support is available that could unlock funding, procurement opportunities, and tailored advice to help make sustainability a profitable part of your business strategy.

4. Work With Your Bank to Unlock Green Finance

Finance can be a powerful enabler, or a barrier. The Review found that many SMEs are willing to invest in sustainability, but lack the tools to assess return on investment (ROI) or find the right financial products. The British Business Bank’s Small Business Finance Markets Report (2025) showed smaller businesses are increasingly focused on environmental sustainability as a priority, and are beginning to consider using external finance to fund this. The Review recommends that banks and financial service providers:

• Provide green business planning support.

• Create tools to model the ROI of net zero investments.

• Offer bespoke green loan products with advisory services attached.

Tip: As a business owner, your next step might be to schedule a conversation with your relationship manager about green lending products or to ask your accountant to help develop a low-carbon investment case. Explore green loans and grants designed to support sustainable initiatives. Or collaborate with financial institutions offering green finance education and support.

5. Use What Already Exists

There is no need to reinvent the wheel as there are already tools, resources, and frameworks available that SMEs can use today. For example, the UK Business Climate Hub is a one-stop shop for:

• Carbon calculators.

• Sector-specific advice.

• Free toolkits and templates.

• Pledges and recognition programmes.

These resources are developed in collaboration with the Department for Energy Security and Net Zero (DESNZ), the British Business Bank, and the Carbon Trust. They are particularly helpful for SMEs without in-house sustainability staff or technical expertise.

Tip: Start by estimating your carbon footprint using the Climate Hub calculator, then explore your decarbonisation pathway. Set one realistic goal for your next financial quarter, whether it’s reducing electricity use, switching a supplier, or starting employee engagement on sustainability.

Why This Matters: Beyond Compliance

Sustainability is no longer a niche issue or a problem for larger companies to solve. Climate regulations, supply chain pressures, consumer expectations and business resilience are all converging. Businesses that fail to respond risk being left behind and missing out on the opportunities from implementing sustainable practices. According to the British Business Bank, SMEs that proactively invest in green technologies are 30% more likely to grow revenue over a five-year period.

The Review adds weight to this with real-world evidence from SMEs who are already making changes to their business, and benefitting from them. SMEs don’t need to wait for the perfect conditions or government mandates to start doing things differently because the tools, networks, and financing options already exist. However, what is needed is a change in mindset, from seeing sustainability as a cost or burden to recognising it as a strategic asset for business resilience.

Final Thought: A Call to Action

If you’re an SME owner, director, or advisor, now is the time to act. Sustainability can improve your efficiency, open new markets, attract top talent, and reduce risk. Here’s what you can do today:

1. Visit the UK Business Climate Hub and explore the free tools.

2. Join a sustainability network or peer group in your sector or region.

3. Contact your local authority or Growth Hub about relevant funding or support schemes.

4. Talk to your bank about green finance opportunities.

5. Share this article to help raise awareness and support others.

Together, we can build a stronger, greener, and more resilient SME economy - one business at a time.

For more detailed information and resources, visit the following sites:

• The Willow Review: https://willowreview.com

• UK Business Climate Hub: https://businessclimatehub.uk/

• British Business Bank: https://www.british-business-bank.co.uk/

• People, Planet, Pint: https://small99.co.uk/people-planet-pint-meetup/

• Growth Hub: https://www.growthhubfinder.co.uk/