Green at Heart: Practical ESG Tools for SMEs

The programme has received a strong response across Europe: 311 enterprises applied to explore which sustainable steps would make sense for their businesses. After a selection process, 183 companies joined the programme. The Netherlands delivered the highest number of applications (99), followed by Spain (44) and Austria (40).

From Awareness to Action

Launched in October 2023, Green at Heart is an EU-funded initiative designed to help social SMEs become key players in the green transition. The programme tackles structural barriers that smaller enterprises often face, such as limited knowledge and resources, complex regulation, and a lack of standardised sustainability reporting tools.

To address these challenges, Green at Heart offered a comprehensive package of step-by-step support. The pilot began with two new diagnostic tools:

Go Sustainable Tool – helps companies gain insights into their ESG (environmental, social, governance) performance.

Circular Transition Indicators (CTI) – analyses how circular a product is and provides guidance for improvements.

Entrepreneurs were guided through more than 70 information sessions, where they learnt how to use the tools and discussed opportunities revealed by the results. These were not only opportunities to "go green," but also to improve financial performance, for example, by cutting costs or opening new markets.

"At first, many participants doubted whether this would be too complicated, or whether their company was relevant enough. But after the sessions, they had more confidence and motivation to take the next step towards sustainability."

– Loraine Schuijt, Impact Hub Amsterdam

Direct Support and Measurable Impact

Alongside training and guidance, 62 social enterprises across Europe received direct financial support. With these funds, they implemented green solutions ranging from circular product innovations to energy savings and sustainable process development.

The results are concrete: in just two years, the average sustainability score of participating companies rose from 4.3 to 5.4 out of 10 points, with the strongest progress in the environmental dimension (+26%). The most remarkable growth came from companies that started the project with little internal knowledge. Thanks to tailoured training, practical tools, and financial support, they improved their score from 4.3 to 5.7—a leap of 34%.

"Green at Heart reminded me that impact is not defined by the size of a team or a budget, but by intention and genuine commitment to make a difference. With the right tools and guidance, small brands like Kacau can grow into powerful drivers of change."

– Tom de Pele, Kacau (Portugal)

"Green at Heart showed me that even the smallest company can be part of the sustainability movement. It's about starting where you are, listening to your peers, and discovering what fits your business—and then sharing it, so that others can take their next step too."

– Kersti Evelina Lundqvist, The Good Tribe (Austria)

Key Lessons for SMEs

Practical experiences from Green at Heart brought forward several lessons that can help other SMEs on their sustainability journey:

• See sustainability as an opportunity, not an obligation – to gain insights into your business and future-proof your company.
• Start small, but start – progress does not have to be perfect, it's about taking feasible first steps.
• Build internal support – true progress requires commitment from both management and employees.
• Use technology and collaboration wisely – digital tools simplify reporting, whilst experts and coaches add credibility and knowledge.

Amsterdam as a Testbed

In the Netherlands, Amsterdam played a key role as a testbed. Through Impact Hub Amsterdam, the Spanish Go Sustainable tool was translated and adapted to the Dutch context. The Netherlands attracted the highest number of applications, underlining the strong interest of Dutch entrepreneurs in sustainability initiatives.

The City of Amsterdam sees Green at Heart as a valuable instrument for greening SMEs at the European level. The tools developed and tested in the programme provide concrete, practical support, especially for collecting ESG data, identifying ecological, social, and economic opportunities, and translating them into actionable insights for business. This approach fits within Amsterdam's broader strategy to promote ESG adoption in the local economy, exploring instruments such as awareness programmes, Impact Deals, and pilots like meta-impact measurement for social entrepreneurs.

"We see ESG as a way to make 'sustainability' more tangible and embed it more integrally in society, by making ecological, social, and economic opportunities visible. Supporting SMEs is essential, since they often lack the resources to handle regulatory pressure and market demands on their own. At the same time, we do not want to develop tools that cannot be scaled, which is why we continuously work with local, national, and international partners. ESG impact is not a local or national issue, but at least a European one. Green at Heart is therefore an essential part of Amsterdam's efforts to stimulate ESG and CSRD adoption in business."

– Linea Bingel, Policy Adviser Innovative & Impactful Ecosystems, Economic Affairs, City of Amsterdam

Beyond Compliance: Sustainability as Smart Business Strategy

Green at Heart demonstrates that ESG is more than just compliance; it is a smart business practice. It helps reduce costs, attract new customers, and strengthen companies for the long term. For SMEs, sustainability is becoming a competitive advantage: it differentiates brands, opens new markets, and improves efficiency. Many participating businesses discovered that circular and social models can even generate new revenue streams, such as creating reusable packaging from waste.

"The Green at Heart programme helped us transform ESG from a reporting exercise into a source of strategic insight. It enables BikeFlip to act with clarity and transparency, delivering measurable results."

– Casparis Beyer, BikeFlip BV (Netherlands)

The project proves that even small companies can apply robust ESG practices, provided they receive the right tools and support for reflection and implementation.

From Pilot to Policy

Green at Heart shows that the sustainable transition is within reach for SMEs when they receive proper support. The programme's insights and data are being translated into a policy paper, "Supporting SMEs in the Green Transition: Policy Recommendations for Advancing Sustainability", offering concrete recommendations for policymakers. This ensures that the project goes beyond the participating companies and provides lessons for how Europe as a whole can support SMEs in becoming more sustainable.

"Green at Heart turned our good intentions into concrete action. We didn't just establish policies—we built a foundation for sustainable growth that strengthens both our social mission and our commitment to providing a safe and empowering workplace. Our employees now have the tools and knowledge to thrive not only at Atelier Revive but also in their future careers."

– Minke Terwel, Atelier Revive (Netherlands)

A Model for the Future

The key lesson of Green at Heart? The sustainable transition is not just about new rules or technologies, it is about practical support tailoured to the reality of small businesses. With the right tools and guidance, SMEs can become powerful drivers of the green economy. This insight is vital as Europe works towards the Green Deal and climate neutrality by 2050.

Green at Heart is co-funded by the European Innovation Council and SMEs Executive Agency (EISMEA). Learn more about the programme at: https://amsterdam.impacthub.net/project-green-at-heart/

Funded by the European Union. Views and opinions expressed are, however, those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.