EU sets course for 90% emission reduction by 2040: what does this mean for your SME?
The EU has made it clear that sustainability is here to stay. With the new target to cut emissions by 90% by 2040, every business will face higher expectations around transparency and sustainability. This may sound like a big shift, but with simple steps like understanding your carbon footprint and building a clear sustainability strategy, you can prepare today. With Eevery, sustainability becomes practical, accessible and achievable for your business.
EU 90% emissions cut: what it means for your business
The European Union has made one thing very clear: sustainability is still important. In fact, it is becoming more important than ever. With the decision to cut emissions by 90% by 2040, compared to 1990 levels, the EU is moving firmly toward climate neutrality by 2050. For you as an entrepreneur, this means sustainability will increasingly shape your daily operations, not only through legislation, but through expectations from customers, employees and your entire value chain.
This new target sends a powerful message: sustainability is not a trend. It is a permanent part of doing business. In this blog, you will learn what the EU has decided, what it means for your SME and how you can prepare in a smart and accessible way.
What exactly has the EU decided?
The European Parliament has approved a new climate target: a 90% reduction in greenhouse gas emissions by 2040. This is a continuation of the earlier 2030 target of at least 55% reductions. According to the European Commission, the EU is moving in the right direction, reaching 37% reduction by the end of 2023.
To keep the target achievable, the EU has added several supporting measures:
1. Flexibility in how reductions are achieved:
From 2036 onwards, countries and companies may use international CO2 credits for up to 5% of the reductions. This means at least 85% of all emission cuts must happen within Europe.
2. A two‑year evaluation cycle:
Every two years, the European Commission will assess progress, focusing on:
• energy prices
• technological development
• competitiveness
• social impact
3. Postponement of ETS2 to 2028
The extended emissions trading system for road transport and building heating will be introduced a year later. This aims to prevent sudden cost increases for SMEs and households.
Why does this matter for your SME?
While 2040 may seem far away, the effects of this decision are already visible. Large companies must report on sustainability, and they need data from their suppliers. If you are part of their value chain, they will increasingly ask for insights into your emissions, social responsibility and governance. Customers expect more transparency. Employees want to work for responsible businesses. The expectations across the ecosystem continue to rise.
Three reasons why this affects your company directly
1. You are part of a larger value chain
Companies that fall under CSRD must report on their entire supply chain. Without insights, you risk being left out as a supplier.
2. Customers expect transparency
Sustainable products and services are becoming the norm, not the exception. Clear insights strengthen your competitive position.
3. Future legislation will impact SMEs
New sustainability regulations will continue to expand. Starting early helps you stay ahead instead of catching up later.
What does this mean for you in practice?
The good news: you don’t need to transform your business overnight. By taking small, clear steps, sustainability becomes manageable and valuable.
1. Get insight into your current emissions
You can only improve what you understand. The Impact Scan from Eevery gives you a clear overview of your:
• CO2 footprint
• social responsibility
• governance structure• improvement opportunities
2. Make sustainability part of your strategy
A sustainability strategy does not need to be complex. With Eevery’s online tool, you instantly see where you stand, which steps make sense and how to turn them into concrete actions.
3. Involve your employees
Real change happens when your team is part of the journey. Even small actions can make a big difference.
4. Look at your value chain
Work with suppliers who share your vision. This strengthens your position and contributes to a more sustainable ecosystem.
How can Eevery help you?
We believe sustainability should be simple, accessible and practical. Our online tool helps you:
• understand your environmental impact
• improve your social responsibility
• strengthen your governance
• create reports that meet legal requirements
• set goals that match your business
• make real progress step by step
Conclusion: sustainability remains and your business can act today
The new EU target confirms that sustainability is not temporary. It is not going away, it is becoming even more important. By starting today with insights, transparency and clear steps, you prepare your SME for the future and strengthen your competitive position.
Want to discover where your business stands?
