<4th SME Management Survey for FY2025> Disclosure obligations for some listed companies due to mandatory SSBJ standards. "Sustainability response" likely to spread to their SME business partners. Meanwhile, awareness of ESG management remains at 30%.
A survey by Forval GDX Research Institute reveals that while SSBJ standards mandate sustainability disclosures for listed companies, impacting their SME partners, awareness of ESG management among SMEs remains low at 30%. However, over 60% of implementing companies report improved business performance and internal evaluation, with external expert utilization being key to progress.
📋 Article Processing Timeline
- 📰 Published: April 14, 2026 at 19:00
- 🔍 Collected: April 14, 2026 at 10:31
- 🤖 AI Analyzed: April 14, 2026 at 12:33 (2h 2m after Collected)
Forval GDX Research Institute (Headquarters: Shibuya-ku, Tokyo; Director: Manabu Taira), which aims to transform small and medium-sized enterprises (SMEs) using Green and Digital technologies, conducted the "4th SME Management Survey for FY2025" targeting SMEs.
As the development of Sustainability Disclosure Standards (SSBJ Standards) progresses and listed companies are mandated to disclose information across their entire supply chain, responding to ESG management is becoming an extremely critical management issue for SMEs, influencing their business conditions and competitiveness. This survey, against the backdrop of such "external pressure," highlighted that companies proactively addressing these issues strongly feel "improved business performance" in addition to "improved internal evaluation," which represents internal organizational growth.
This report focuses on ESG management, presenting survey results regarding its awareness, implementation status, progress, effects, challenges, and future intentions for promotion.
URL: https://gdx-research.com/wp-content/uploads/2026/03/bluereport_202604ver02.pdf
[Survey Results Summary]
① Awareness of ESG management stagnates at just over 30%. An "awareness barrier" hinders compliance with SSBJ standards.
Approximately 70% of business owners responded to ESG management with "I've heard of it, but don't know much about it" or "I don't know."
② Over 60% of companies engaged in ESG management feel "improved business performance." The greatest achievement is "improved internal evaluation."
56.4% of engaged companies feel an improvement in internal evaluation, with increased internal recognition fostering organizational unity.
③ The key to success is "utilization of external experts." Accompaniment support to compensate for the shortage of specialized personnel is urgently needed.
The biggest reason for progress is the "utilization of external experts," making the strategic use of external resources to supplement lacking knowledge indispensable.
[Survey Outline]
・Survey Body: Forval GDX Research Institute
・Survey Period: January 14, 2026 – February 13, 2026
・Target Respondents: SME business owners nationwide
・Survey Method: Web-based questionnaire conducted and responses analyzed
・Valid Responses: 1,647 people
When using the survey results from this release, please be sure to clearly state: [Survey by Forval GDX Research Institute].
Q1. Awareness of ESG Management (n=1,647)
Q2. Demands from upstream companies (n=978)
Q3. Demands from upstream companies x Initiatives (n=978)
Q4. Reasons for not engaging in ESG management despite demands (n=33)
In the survey on ESG management awareness, only 5.7% responded "I know and can explain it to others," while 25.1% responded "I know, but not enough to explain it," resulting in a total awareness rate of 30.8%. This level has remained almost unchanged from the previous survey in 2024, with approximately 70% of business owners still responding "I don't know" or "I've heard of it, but don't know much about it" regarding ESG management.
Although listed companies are directly subject to the SSBJ standards, the impact on their SME business partners is unavoidable, as listed companies are required to disclose information across their "entire supply chain." Currently, only 8.6% of companies have received demands for ESG promotion from upstream companies, and among those that have received demands, approximately 60% have not yet started ESG management.
The most common reason for not being able to engage despite demands is "lack of personnel with specialized knowledge and know-how (39.4%)," highlighting that low awareness and resource shortages are becoming a "barrier" that could lead to future supply chain selection risks.
Q5. ESG Management Implementation Status (n=978)
Q6. Most Focused Area (n=149)
Q7. Most Focused Area (n=149)
Companies engaged in ESG management (15.2%) are beginning to view it as a comprehensive management framework that includes governance (G), moving away from the previous overemphasis on environment (E). In fact, initiatives in the governance sector, which were a minority in the 2024 survey, have significantly increased, indicating a heightened awareness of compliance and risk management.
As an effect of these initiatives, 61.8% of companies (total of "very effective" and "somewhat effective") reported "improved business performance." Notably, the percentage of respondents who felt "very effective" was highest for "internal evaluation" at 11.4%, which is also higher than the DX indicators* in the same survey. This indicates that ESG management is an extremely effective method for enhancing employee empathy and trust.
*Forval GDX Research Institute https://prtimes.jp/main/html/rd/p/000000086.000117855.html
Q8. Reasons for not implementing ESG management (n=388) *Multiple answers allowed
Q9. Progress of ESG management initiatives (n=149)
Q10. Reasons for progress in ESG management initiatives (n=109) *Multiple answers allowed
Among companies that intend to implement ESG management but have not yet started, the most prominent reason is "other priority issues that have been put on hold (48.5%)." The background suggests challenges unique to SMEs, such as being overwhelmed by daily tasks, lacking time and human resources, and being unable to make investment decisions due to unclear implementation methods.
However, among companies that are actually making progress, approximately 70% reported feeling progress in their initiatives. This rate of perceived progress is higher than the results for DX (60.5%) (*1) and GX (30.5%) (*2) in the same survey, with ESG management showing the highest results.
*1: Blue Report SME GDX/ESG Promotion Strategy <1> ~DX Awareness, Initiatives, Effects~
http://gdx-research.com/wp-content/uploads/2026/03/bluereport_202604.pdf
*2: Blue Report SME GDX/ESG Promotion Strategy <2> ~GX Awareness, Initiatives, Effects~
http://gdx-research.com/wp-content/uploads/2026/03/bluereport_202604.pdf
Furthermore, the most common reason for progress in initiatives was "utilization of external experts and consultants (34.2%)," followed by "linkage with business (28.5%)." In the ESG domain, where securing specialized personnel is difficult (see Q4), it is not easy to respond promptly to requests from upstream companies based on SSBJ standards while simultaneously achieving sustainable growth for one's own company. Moving forward, it will be crucial to "master" external support to establish mechanisms for quantitative effect measurement and evaluation.
Manabu Taira, Director, Forval GDX Research Institute
■ Biography
Joined Forval Corporation in 1992. After turning around a deficit-ridden Kyushu branch, launching a new consulting business, and overseeing overall operations, he was appointed as the first director of the newly established neutral and independent organization, "Forval GDX Research Institute," in 2022.
He promotes GDX for SMEs to the world through the publication of the white paper "Blue Report," which summarizes the actual state of SME management, lectures on DX and GX for SME business owners in collaboration with local governments nationwide, and planning events for SME business owners.
■ Comment
This report identified "shortage of highly specialized personnel," "difficulty in securing necessary budget and investment," and "difficulty in measuring and evaluating outcomes and effects" as top challenges in promoting ESG management. Since it is difficult to immediately tackle technical challenges and institutional design for implementation, I hope that companies will consider utilizing experts to solve these issues.
Recently, various ESG-related needs have become apparent, such as requests from large companies for greenhouse gas emission data related to supply chain emissions, strengthening human rights considerations and risk management, and social contributions. By taking on ESG management, SMEs can further differentiate themselves in the market and build stronger organizations.
■ What is Forval GDX Research Institute?
SMEs account for over 99% of all corporations in Japan. The growth of each of these SMEs leads to the vitality of Japan. One of the driving forces for SME growth is GDX (Green Digital Transformation), which transforms companies themselves by utilizing Green and Digital technologies.
Forval GDX Research Institute is a research institution that investigates the actual state of GDX among SMEs, compiles various reports, papers, and documents, and disseminates them to the world. With the mission of "investigating and disseminating the current status and realities of GDX in SMEs," we aim to be an "indispensable presence in SME GDX."
HP: https://gdx-research.com/
As the development of Sustainability Disclosure Standards (SSBJ Standards) progresses and listed companies are mandated to disclose information across their entire supply chain, responding to ESG management is becoming an extremely critical management issue for SMEs, influencing their business conditions and competitiveness. This survey, against the backdrop of such "external pressure," highlighted that companies proactively addressing these issues strongly feel "improved business performance" in addition to "improved internal evaluation," which represents internal organizational growth.
This report focuses on ESG management, presenting survey results regarding its awareness, implementation status, progress, effects, challenges, and future intentions for promotion.
URL: https://gdx-research.com/wp-content/uploads/2026/03/bluereport_202604ver02.pdf
[Survey Results Summary]
① Awareness of ESG management stagnates at just over 30%. An "awareness barrier" hinders compliance with SSBJ standards.
Approximately 70% of business owners responded to ESG management with "I've heard of it, but don't know much about it" or "I don't know."
② Over 60% of companies engaged in ESG management feel "improved business performance." The greatest achievement is "improved internal evaluation."
56.4% of engaged companies feel an improvement in internal evaluation, with increased internal recognition fostering organizational unity.
③ The key to success is "utilization of external experts." Accompaniment support to compensate for the shortage of specialized personnel is urgently needed.
The biggest reason for progress is the "utilization of external experts," making the strategic use of external resources to supplement lacking knowledge indispensable.
[Survey Outline]
・Survey Body: Forval GDX Research Institute
・Survey Period: January 14, 2026 – February 13, 2026
・Target Respondents: SME business owners nationwide
・Survey Method: Web-based questionnaire conducted and responses analyzed
・Valid Responses: 1,647 people
When using the survey results from this release, please be sure to clearly state: [Survey by Forval GDX Research Institute].
Q1. Awareness of ESG Management (n=1,647)
Q2. Demands from upstream companies (n=978)
Q3. Demands from upstream companies x Initiatives (n=978)
Q4. Reasons for not engaging in ESG management despite demands (n=33)
In the survey on ESG management awareness, only 5.7% responded "I know and can explain it to others," while 25.1% responded "I know, but not enough to explain it," resulting in a total awareness rate of 30.8%. This level has remained almost unchanged from the previous survey in 2024, with approximately 70% of business owners still responding "I don't know" or "I've heard of it, but don't know much about it" regarding ESG management.
Although listed companies are directly subject to the SSBJ standards, the impact on their SME business partners is unavoidable, as listed companies are required to disclose information across their "entire supply chain." Currently, only 8.6% of companies have received demands for ESG promotion from upstream companies, and among those that have received demands, approximately 60% have not yet started ESG management.
The most common reason for not being able to engage despite demands is "lack of personnel with specialized knowledge and know-how (39.4%)," highlighting that low awareness and resource shortages are becoming a "barrier" that could lead to future supply chain selection risks.
Q5. ESG Management Implementation Status (n=978)
Q6. Most Focused Area (n=149)
Q7. Most Focused Area (n=149)
Companies engaged in ESG management (15.2%) are beginning to view it as a comprehensive management framework that includes governance (G), moving away from the previous overemphasis on environment (E). In fact, initiatives in the governance sector, which were a minority in the 2024 survey, have significantly increased, indicating a heightened awareness of compliance and risk management.
As an effect of these initiatives, 61.8% of companies (total of "very effective" and "somewhat effective") reported "improved business performance." Notably, the percentage of respondents who felt "very effective" was highest for "internal evaluation" at 11.4%, which is also higher than the DX indicators* in the same survey. This indicates that ESG management is an extremely effective method for enhancing employee empathy and trust.
*Forval GDX Research Institute https://prtimes.jp/main/html/rd/p/000000086.000117855.html
Q8. Reasons for not implementing ESG management (n=388) *Multiple answers allowed
Q9. Progress of ESG management initiatives (n=149)
Q10. Reasons for progress in ESG management initiatives (n=109) *Multiple answers allowed
Among companies that intend to implement ESG management but have not yet started, the most prominent reason is "other priority issues that have been put on hold (48.5%)." The background suggests challenges unique to SMEs, such as being overwhelmed by daily tasks, lacking time and human resources, and being unable to make investment decisions due to unclear implementation methods.
However, among companies that are actually making progress, approximately 70% reported feeling progress in their initiatives. This rate of perceived progress is higher than the results for DX (60.5%) (*1) and GX (30.5%) (*2) in the same survey, with ESG management showing the highest results.
*1: Blue Report SME GDX/ESG Promotion Strategy <1> ~DX Awareness, Initiatives, Effects~
http://gdx-research.com/wp-content/uploads/2026/03/bluereport_202604.pdf
*2: Blue Report SME GDX/ESG Promotion Strategy <2> ~GX Awareness, Initiatives, Effects~
http://gdx-research.com/wp-content/uploads/2026/03/bluereport_202604.pdf
Furthermore, the most common reason for progress in initiatives was "utilization of external experts and consultants (34.2%)," followed by "linkage with business (28.5%)." In the ESG domain, where securing specialized personnel is difficult (see Q4), it is not easy to respond promptly to requests from upstream companies based on SSBJ standards while simultaneously achieving sustainable growth for one's own company. Moving forward, it will be crucial to "master" external support to establish mechanisms for quantitative effect measurement and evaluation.
Manabu Taira, Director, Forval GDX Research Institute
■ Biography
Joined Forval Corporation in 1992. After turning around a deficit-ridden Kyushu branch, launching a new consulting business, and overseeing overall operations, he was appointed as the first director of the newly established neutral and independent organization, "Forval GDX Research Institute," in 2022.
He promotes GDX for SMEs to the world through the publication of the white paper "Blue Report," which summarizes the actual state of SME management, lectures on DX and GX for SME business owners in collaboration with local governments nationwide, and planning events for SME business owners.
■ Comment
This report identified "shortage of highly specialized personnel," "difficulty in securing necessary budget and investment," and "difficulty in measuring and evaluating outcomes and effects" as top challenges in promoting ESG management. Since it is difficult to immediately tackle technical challenges and institutional design for implementation, I hope that companies will consider utilizing experts to solve these issues.
Recently, various ESG-related needs have become apparent, such as requests from large companies for greenhouse gas emission data related to supply chain emissions, strengthening human rights considerations and risk management, and social contributions. By taking on ESG management, SMEs can further differentiate themselves in the market and build stronger organizations.
■ What is Forval GDX Research Institute?
SMEs account for over 99% of all corporations in Japan. The growth of each of these SMEs leads to the vitality of Japan. One of the driving forces for SME growth is GDX (Green Digital Transformation), which transforms companies themselves by utilizing Green and Digital technologies.
Forval GDX Research Institute is a research institution that investigates the actual state of GDX among SMEs, compiles various reports, papers, and documents, and disseminates them to the world. With the mission of "investigating and disseminating the current status and realities of GDX in SMEs," we aim to be an "indispensable presence in SME GDX."
HP: https://gdx-research.com/