Comparative analysis of SME decarbonization policies in the UK and Canada with an equity diversity inclusion focus

The transition to net-zero emissions globally has intensified attention on the contribution of SMEs to a low-carbon economy. Both in the UK and Canada, Small and Medium-Sized Enterprises (SMEs) account for a substantial proportion up to 50% in Canada and 50% in the UK (commercial and industrial) of greenhouse gas emissions, yet they are often absent from the discussions of transition planning. Major initiatives aimed at supporting companies in transition - for example the UN Global Compact - do not address SMEs. Our research shows that SMEs headed by women, Indigenous peoples and youth are more likely to prioritize the sustainable development goals generally and green transition specifically but they are often not included in the discussion. Often, for example, policies focus on specific sectors (oil and gas, manufacturing) and support focus on technology creation (eg. Greentech) rather than adoption. This tends to exclude women and other equity-deserving groups who tend to be under-represented in these sectors. Significant opportunities exist to mainstream green transitioning across sectors, organization sizes, and populations that need further exploration. The proposed study aims to synthesize existing knowledge on the decarbonization policies for SMEs in the UK and Canada, with a specific focus on SMEs and Equity Diversity and Inclusion (EDI). The project will compare and contrast the governing structures and policies in both countries, identifying best practices and gaps, particularly in engaging SMEs including businesses owned by women, indigenous peoples, racialized and newcomer populations as well as youth. For the purpose of this proposal, we define governance structure as frameworks, policies and practices that guide and regulate stakeholders actions in addressing environmental issues. This will include international agreements, national policies, regional and local governance, voluntary codes and standards and collaborative governance models. We will consider how issues are framed, who is included/excluded in decision-making, processes, and outcomes. The project objectives are: To investigate the unique challenges faced by SMEs in implementing decarbonization strategies with a particular focus on SMEs owned by women, Indigenous peoples, and other equity-deserving groups in Canada and the UK. To apply gender and diversity analysis to identifying structures, policies and processes and what changes are needed to achieve more inclusive and effective governance systems in Canada and the UK. The main theme of the project will be “decarbonization policies of SMEs”, and subthemes will include: governance structures, equity, diversity, and inclusion (EDI) , policy effectiveness, regional support mechanisms, and data collection and analysis. The expected contributions and impact of the project will include informing the design of targeted support programs and policies that address the specific needs of women-owned SMEs, promoting gender equity in decarbonization efforts. Through the project activities, we will contribute evidence and insights for the development of policies to support participation and effectiveness of ethnic-minority-owned SMEs in environmental governance and decarbonization initiatives, with actionable policy recommendations to support inclusive environmental strategies. Additionally, we will identify, and facilitate the application of best practices from the UK and Canadian contexts, fostering international collaboration and knowledge sharing in SME decarbonization.