SMEs in Transition
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Final Report

Final report 

The final report on SMEs in Transition presents the findings, achievements, and recommendations resulting from two years of collaborative action-research conducted as part of this initiative led by QNP.  This project aimed to identify the most effective levers for accelerating the implementation of climate actions in Quebec's manufacturing SMEs.

The report explores four key areas: regional and sectoral mobilization, communities of practice, foresight and strategic monitoring, and human factors related to climate decision-making. It proposes concrete ways to strengthen skills, stimulate collaboration, and create an environment conducive to climate action within Quebec's economic fabric.

Published on December 11 2024.

Collaborators in SMEs in Transition 

Financial support

Banque LaurentienneLogo gouvernement Canada

Collaborators

Distribution partner

Final report

Manufacturing Realities: Towards a Low-Carbon Economy

Key findings

Measuring greenhouse gas (GHG) emissions and implementing climate action
Manufacturing SMEs need accessible expertise, simple tools, and adequate financial support to measure their GHG emissions. Accurate, reliable, and comparable data are crucial for prioritizing actions with the greatest potential for positive impacts on profitability and the environment. Increased pressure from governments, customers, and investors, as well as a clear and predictable legal framework for disclosure, would help increase interest in GHG measurement.

Communities of Practice (CoP): A Catalyst for Mobilization and Collaboration
The "Supporting Manufacturing SMEs in Climate Action" CoP, launched as part of the initiative, now includes over 180 participants across 15 regions in Quebec. This experience has demonstrated the significant potential of such a CoP to mobilize and equip SME advisors through collective learning approaches and the creation of interregional and cross-sectoral synergies.

Forward thinking: thinking about tomorrow in order to act today
Forward thinking is a strategic lever that helps SMEs anticipate the changes they need to make in order to position themselves on a sustainable path. Although perceived as complex or abstract by SMEs, a forward-thinking approach initiated as part of strategic planning raises awareness of climate and transition issues. By sharpening creativity and systemic thinking, this discipline makes it possible to explore solutions aligned with long-term objectives, anticipate new business opportunities, and prepare to operate in a low-carbon economy.

Strategic monitoring: a compass for anticipating trends
Strategic monitoring supports decision-making, allows you to stay abreast of best practices, discover inspiring companies, and proves very useful for SME advisors. The new knowledge gained from monitoring reports has enabled them to identify weak signals, anticipate trends, assess the potential impact of new regulations, and better guide and support SMEs.

The human factor: a new angle for tackling climate inaction
This aspect of the research highlighted psychological factors present in SME owners, including learned helplessness, confirmation bias, and psychological distance, which can influence their decisions. The cognitive, psychological, psychosocial, motivational, and emotional factors underlying SME owners' appropriation of the climate challenge provide a new perspective on certain barriers to climate action.

Recommendations

1. Train to take action

Strengthen the sustainable development skills of leaders, managers, and employees of manufacturing SMEs, as well as those of key influencers who support them within the business ecosystem.

2. Promoting collaborative learning 

Offer a variety of learning formats to develop key skills for accelerating the transition and successfully engaging in fair, inclusive, and sustainable systemic change.

3. Simplifying forward planning procedures

Make this approach more accessible through practical content and approaches tailored to SMEs.

4. Inspire with stories of transition

Share testimonials from Committed and Visionaries SMEs to demonstrate that transition is possible, then enable a growing number of manufacturing SMEs to discover concrete examples of success.

5. Facilitate access to information and resources

Democratize access to climate and GHG data, then facilitate referral to existing resources to simplify the work of the SME support ecosystem.

6. Focus on change management

Integrate change management approaches and well-known psychological concepts to take human factors into account when mobilizing SMEs.

7. Increase energy productivity, material productivity, and circularity

Focus on optimizing the use of energy and material resources to reduce costs and improve competitiveness, while reducing GHG emissions.

Testimonies

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"We are privileged to have had the opportunity to participate in the SMEs in Transition project. This experience will have enabled us to collaborate with new players and explore novel approaches, broadening our perspectives and enriching our know-how."
Jérémie Bourgault
Sustainable Development Project Manager –
Digital HUB, ADDERE

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