MSMEs for a just transition

Climate change and environmental degradation are reshaping economies and impacting millions of jobs worldwide. The ILO calls for a society-wide transition towards environmentally sustainable economies, prioritizing growth of sustainable enterprises with social dialogue at the forefront.

MSMEs, which employ over two thirds of the global workforce and up to 90 per cent of workers in lower income economies, are key to this transition. However, they remain highly vulnerable to climate change due to limited access to resources, information, skills, finances and market opportunities.

For MSMEs to thrive, they require support to adapt to climate change and mitigate their environmental impact. Importantly, this support should be rooted in maximizing the social and economic opportunities of climate action while minimizing challenges, through promotion of decent work.

The ILO, in collaboration with governments, social partners and key stakeholders, helps both MSMEs and their workers to:

• Strengthen business resilience to environmental shocks while fostering decent, sustainable jobs.  
• Promote mitigation efforts, including decarbonization, resource efficiency, waste management and environmental protection, that promote green growth.
• Encourage innovation and help seize business opportunities in green sectors and value chains, and the circular economy.