Mid-market businesses are adopting sustainable finance to reduce emissions and unlock financial advantages, although many need better access to capital and expertise to reach their full potential.
Small and medium-sized enterprises (SMEs) are often overlooked in Australia’s push towards a low-carbon economy, even though they contribute over half of the country’s GDP and employ 70% of the private workforce. While major listed companies often capture media attention, thousands of family-owned and regional businesses are using sustainable finance to improve energy efficiency, cut emissions and strengthen long-term resilience. These businesses are closely connected to their local communities, and their collective momentum is becoming an important driver of sustainability across the country.
An increasing number of businesses are recognising that sustainable finance does more than help the environment. It also delivers business value. Lower energy costs, stronger customer engagement and improved competitiveness are strong incentives. Financial institutions are responding to this trend, with one major bank pledging $70 billion towards sustainable finance by 2030. So far, $64.4 billion has been allocated to support customised lending aligned with green finance principles.
Examples from around the country highlight how SMEs are applying sustainability in practical ways. In Queensland, a property group increased a regional building’s energy rating using a $222 million Green Loan. A NSW airport secured a $235 million loan to invest in solar energy and biodiversity programs. In Far North Queensland, a tourist venue installed rooftop solar through a Sustainability-Linked Loan while also launching a training initiative for Indigenous communities. Even the country’s largest olive oil producer has linked $233 million in funding to environmental goals focused on emissions reduction, water efficiency and biodiversity protection.
These efforts are not limited to cities, as regional businesses, farms and small-town enterprises also take action. From lowering energy bills to adding green vehicles, more businesses are consciously choosing sustainability. For many, the biggest barrier is not ambition but access to funding and reliable advice. With rising interest and growing support from lenders, this transition is likely to continue gaining pace.
