Addressing Climate Change Together: A Systems Thinking and Stakeholder Focused Intervention Perspective to Engaging SMEs on Carbon Emissions Reduction and Net Zero Schemes

The need for carbon emission reductions and the pursuit of Net Zero initiatives are increasingly recognized as pivotal in addressing the global climate crisis. Specific to businesses, adopting Net Zero initiatives ties-in with their social and environmental responsibility obligation. The idea of Social/Environmental Responsibility, and related concepts such as ESG, is that business have a responsibility for the impact of their activities on society (i.e., stakeholders), and that this (i.e., impact) on stakeholders should be positive. “Positive impact” has, at least, two main dimensions. First, the businesses’ activities are expected to have a positive impact on at least one of the triple bottom lines (environment, social and economic development). Secondly, it needs to ensure there is an appropriate provision made for the management of the potential negative impacts that (may) arise from business activity. The positive impact logic should apply to all businesses. However, the small business (i.e., SME) social responsibility context for Net Zero initiatives is not a common starting point for policy makers and researchers. Correspondingly, understanding how Net Zero initiatives can be approached by this business category makes sense not least because small firms are an important part of the economic and social landscape, comprising more than 95% of private business consistently around the globe (Wymenga, Spanikova, Barker, Konings, & Canton, 2012). This chapter explores the crucial role of engaging diverse stakeholders in this endeavour, underscoring the need for inclusive, cooperative efforts to assist small business transition to a low-carbon, sustainable future. Specifically, it examines the theoretical underpinnings and practical applications of stakeholder theory and system theory in the context of environmental sustainability, focusing on carbon emission reduction and Net Zero initiatives that are relevant to the SME context.