UK SMEs at the forefront of driving industrial decarbonisation in Europe

A major new survey commissioned by Equans, a global leader in the energy and services sector, reveals the growing commitment of Europe’s smaller industrial businesses to decarbonise — but also highlights the pressing need for clearer support and simpler solutions.

Across Europe, small and mid-sized industrial companies are stepping up in the face of climate change, with 80 per cent of leaders saying their companies are closely monitoring emissions, they are working on all fronts to accelerate the transition to low-carbon operations.

Equans unveiled the findings of its new OpinionWay survey at the 2025 ChangeNOW Summit. Conducted by OpinionWay, the survey gathered responses from 1,336 industrial decision-makers in France, the UK, Belgium, Germany and the Netherlands. It offers an up-to-date snapshot of the current state of play in industrial decarbonisation across Europe, outlining the challenges, solutions, and ambitions of SMEs and mid-caps in the sector.

More than 90 per cent of Europe’s industrial leaders say that decarbonisation is compatible with their line of work, regardless of company size or location. And 87 per cent believe it is achievable, given the available technologies.

UK and the Netherlands are leading the charge on decarbonisation

In the UK, firms are particularly proactive: 94 per cent of those that have started decarbonising have formalised their efforts through an official framework – well above the European average of 80 per cent. A similar trend is seen in the Netherlands, where 91 per cent of respondents say industrial decarbonisation is already well underway (compared to 83 per cent Europe-wide).

Overall, 95 per cent of companies surveyed have at least begun thinking about how to decarbonise — with many already making operational changes. Motivations vary by country, but include improving corporate reputation (58 per cent), securing energy supply (47 per cent) and driving innovation (46 per cent). For 78 per cent of respondents, this transition is being pursued collectively, through their wider industrial ecosystems.

Still, while the issue is widely discussed, fewer than half have translated ambition into concrete action.

Industry and Europe aligned on the practical technical pathways to achieve decarbonisation

Most companies are taking a pragmatic, step-by-step approach. Energy efficiency and resource circularity stand out as the two most widely adopted strategies, with 57 per cent implementing energy-saving initiatives and 52 per cent reducing water and raw material consumption.

Some national differences stand out. British industrial companies are leading on energy efficiency (74 per cent), while Belgian firms top the charts for circularity and resource reuse (73 per cent).

When it comes to energy sources, solar and battery storage are the clear favourites, chosen by 80 per cent of businesses that have launched decarbonisation efforts, especially larger firms. Over half have also turned to heat pumps, while smaller companies are further along in electrifying their production processes, tailoring solutions to their operational reality.

Decarbonisation is a long-term undertaking 

The main driver of decarbonisation isn’t public incentives, it’s environmental conviction from leadership (44 per cent). Government incentives rank second (39 per cent). In France, this dynamic is even stronger, with 49 per cent of respondents pointing to leadership, compared with just 28 per cent citing state intervention.

Yet political and media narratives are having a real impact. More than half of leaders say that calls to slow down the transition are hampering progress in their companies. In the UK (65 per cent) and Netherlands (66 per cent), this perception is particularly strong. In France, the figure is lower at 52 per cent.

This widespread concern reflects a shared view that decarbonisation is a long-term effort: 92 per cent of decision-makers say it requires consistency over time.

Decarbonisation obstacles

While the obstacles vary from country to country, certain themes emerge. At the European level, the complexity of available solutions is the most common barrier (32 per cent), followed by the scale of investment required (27 per cent).

In the UK, supply chain issues affecting access to low-carbon energy and bio-based materials are a major concern (38 per cent). In France, businesses face a combination of hurdles — cost (30 per cent), complexity (27 per cent), and regulatory uncertainty (25 per cent) — all of which point to a need for simplification and predictability.

Food sector businesses are notably more confident in their ability to decarbonise and stick to timelines. In contrast, companies in high-tech industries are more likely to view the process as unrealistic or more challenging than in other sectors.

Although public authorities and EU institutions are not seen as the main drivers, they are still perceived as best placed to address the structural obstacles faced by industry.

Jean-Philippe Loiseau, CEO Equans, UK & Ireland commented: “UK SMEs are at the forefront of driving industrial decarbonisation in Europe: 94 per cent of UK companies have formal commitments to decarbonise and over half have already taken action – notably outpacing their European counterparts.  What is clear is that UK business has the ambition and appetite to lead the energy transition, yet this is being put at risk by the complexity of proposed solutions and their supply chains, as well as the shifting political sentiment toward net zero.”

Jérôme Stubler, CEO d’Equans added: “SMEs and mid-caps are innovating across the board to reduce energy consumption and decarbonise: energy management, insulation and retrofitting of buildings, electrification of processes and fleets. They are fully aware of their role and have already undertaken extensive strategic thinking. They are moving forward, but they are scaling back their ambitions due to lack of clarity around regulation and electricity prices, a lack of simple solutions, and limited access to funding. Our ability to simplify and support this momentum will be key to accelerating Europe’s industrial decarbonisation.”