Energy volatility is reshaping how SMEs think about resilience
Pamela Jouven, Director, SME Climate Hub and Jo Hand, Co-founder of Giki.
A snapshot of responses from businesses in Colombia, Ireland, Spain, and the UK shows how climate action planning is helping SMEs anticipate disruption, manage volatility and strengthen long-term resilience.
Businesses across the global economy are navigating rising energy costs and operational uncertainty as recent conflict in the Middle East sparks energy price shocks and economic volatility. European Commission President Ursula von der Leyen recently warned that the conflict had already increased the EU’s fossil fuel import bill by more than €27 billion in just 60 days. On the other hand, countries and companies who have invested in clean energy are better placed to weather the storm. UN climate chief Simon Stiell argued that renewables “turn the tables” on energy insecurity, noting that “sunlight doesn’t depend on narrow and vulnerable shipping straits” such as the Strait of Hormuz.
For small and medium-sized businesses (SMEs) operating with tighter margins and fewer buffers against disruption, these pressures can be particularly acute. An analysis of the impact of energy price volatility caused by the outbreak of war in Ukraine showed that SMEs are often among the most exposed to the impacts of instability across global energy markets.
To understand how SMEs were being affected by the crisis, we reached out to a group of SMEs already using the SME Climate Hub’s Climate Action Planner tool, which supports smaller businesses in developing practical climate transition plans and identifying opportunities to improve resilience, reduce emissions and strengthen long-term competitiveness.
There are already over 300 SMEs using the Climate Action Planner tool, and some of the most popular actions SMEs are adding to their plans include:
- Reducing emissions in the office with the energy saver checklist, the most popular action at time of publishing
- Performing an energy audit is one of the most popular, large cost-saving actions
Cost saving is a key driver, associated with over 55% of actions on SMEs’ climate action plans – and many of the actions SMEs are already implementing focus on increasing energy efficiency. Some of the most popular actions companies have already taken include upgrading lighting systems and investing in energy efficient office equipment.
Our survey aimed to dig into the drivers behind some of these actions. The SMEs who responded are, by and large, increasingly treating it as part of a broader resilience strategy. While several of our respondents operate in service and technology sectors with lower direct energy exposure than manufacturing or heavy industry, concerns around operational costs, volatility and future competitiveness emerged consistently.
SMEs are already adapting to volatility
In Ireland, carbon management platform Origin Xero Enterprises described rising energy costs as creating uncertainty around planning and investment decisions. The company said it had introduced a green utility supplier and integrated smart energy management systems to monitor consumption and help manage exposure to price volatility over time.
CEO Eoin O’Riordan said: “We integrated a smart energy management system to help our business stay resilient against rising energy costs by monitoring consumption, converting to green supplier, hedging against price volatility, and lowering long-term operational expenses.”
For some businesses, resilience measures are becoming more operationally embedded. Converge Technology Solutions told us rising energy prices were already increasing costs significantly, and highlighted interventions including solar panels, electric fleet vehicles and recycled IT equipment.
Director of Sustainability Sheryl Moore said: “At Converge we believe the circular economy is a cost- and energy-saving alternative to buying new in the tech sector.”
Meanwhile, UK-based Webtrends Optimize said climate planning had already been “somewhat helpful” in responding to operational pressures linked to rising energy costs. The company highlighted efforts to improve office efficiency, encourage lower-impact commuting and transition to fully renewable suppliers as part of its broader sustainability approach.
While some respondents highlighted practical resilience measures already underway, others said they remained concerned about future exposure to rising energy costs. Though Spain-based Mailteck described energy disruption as having a “limited impact so far”, they still expressed concern about future price volatility. Spain’s large-scale deployment of wind and solar has helped reduce exposure to fossil fuel price shocks, with Ember analysis showing wholesale electricity prices were 32% below the EU average in the first half of 2025.
Resilience is built before crises happen
Colombia-based industrial and engineering supplier Segura Cerrajería y Ferretería outlined that climate planning had “significantly improved resilience”, particularly in helping the business think more proactively about long-term operational exposure and supply chain risk.
Chief Digital Officer Julián Segura said: “Resilience against energy costs isn’t built during a crisis, it’s built before one. What would help SMEs to get there is clear information, accessible financing and ecosystems that help them anticipate what’s coming, not just react to it.”
Climate action must be part of resilience planning for SMEs
In a more volatile economic and energy landscape, climate action planning is increasingly becoming part of operational resilience planning for SMEs. From improving efficiency and monitoring energy use to exploring renewable suppliers, electrification and circular economy approaches, businesses are already taking practical steps to prepare for future shocks.
The findings reinforce a wider reality that SMEs cannot do this alone. Accessible financing, supportive policy frameworks and clear long-term investment signals will remain essential to help smaller businesses invest with confidence and strengthen resilience over time.
SMEs make up 90% of businesses worldwide. As governments work to improve energy security and competitiveness, supporting SMEs to plan ahead, improve efficiency and reduce exposure to fossil fuel volatility will be increasingly important for building long-term economic resilience at national level.
The SME Climate Hub is an initiative of the We Mean Business Coalition, co-founded and operated in partnership with the Exponential Roadmap Initiative.
Giki is a social enterprise and B-Corp which combines deep sustainability expertise with purpose-built tools to make climate action faster, practical and accessible.
Pulling from Giki’s library of +750 actions, SME Climate Hub’s Climate Action Planner creates a personalized Climate Action Plan in about 60 minutes. It’s free to use and integrates with our other tools.