Unlocking the full potential of Social Value and Nature Capital for SMEs in the UK and Europe

At the Research Centre on Peripheral Populations, we recognise that true sustainable development is only possible when social and environmental value are integrated. However, current policies and frameworks often separate these two dimensions, treating social impact (such as fair wages, community well-being, and worker rights) and environmental goals (such as net zero, resource efficiency, and biodiversity protection) as isolated objectives.

In practice, businesses cannot thrive without addressing both. The shift to sustainable business models must consider the co-dependence between social and environmental value. For example, a circular economy model cannot succeed without fair labour conditions and inclusive supply chains, just as a socially responsible enterprise cannot create long-term impact if its operations deplete natural resources.

Despite this reality, most regulatory frameworks prioritise compliance—asking businesses to meet minimum standards rather than empowering them to innovate and create lasting impact. More importantly, these frameworks are often designed for large corporations, leaving SMEs—who make up 95% of businesses in Europe—without clear pathways to embed both social and environmental sustainability into their business strategy.

Our initiative moves beyond compliance by providing SMEs with a clear, actionable framework to integrate both social and environmental impact into their decision-making. This will not only help them meet regulatory expectations but also position them for success in the growing markets of the future, such as the circular economy, blue economy, and regenerative industries.

Our project, supported by British Academy Pump-Priming funding (February 2025) is the first step toward a Horizon Europe proposal under Cluster 6, Destination - Circular economy and bioeconomy sectors (HORIZON-CL6-2025-01-CIRCBIO-01-two-stage: Open Topic: Innovative solutions for the sustainable and circular transformation of SMEs).

The project will develop a Decision-Support Tool that helps SMEs:

• Move beyond compliance – Shifting from reactive adaptation to sustainability regulations to a proactive strategy that integrates social value and environmental value as drivers of business success.
• Unlock new market opportunities – By identifying and leveraging sustainability-driven business models, SMEs can tap into the circular economy (resource efficiency), blue economy (coastal/marine sustainability), and regenerative industries.
• Strengthen their business model – Rather than seeing sustainability as a cost, SMEs will develop strategies that create value, increasing their profitability and competitiveness.
• Attract alternative investors and customers – Businesses that can demonstrate a holistic approach to sustainability will gain access to impact investors, government incentives, and a growing market of socially and environmentally conscious consumers.

Principal Investigator: Dr Maria Granados, Reader in Social Innovation, University of Westminster, [email protected]

Research associate of the project: Timo Holtappels, PhD candidate, University of Westminster, [email protected] 

A Three-Phase Process Grounded in Business Strategy

Our approach ensures that SMEs don’t just comply with regulations but actively integrate social and environmental impact into their business model for long-term success.

Potential partners

For more information about this project, please contact the principal investigator, Dr Maria Granados, [email protected].

SDG alignment

• SDG 2 – Zero Hunger
• SDG 8 – Decent Work and Economic Growth
• SDG 9 – Industry, Innovation and Infrastructure
• SDG 12 – Responsible Consumption and Production
• SDG 13 – Climate Action
• SDG 15 – Life on Land
• SDG 17 – Partnerships for the Goals