Purpose SMEs account for 99.9% of the businesses in the UK and significantly contribute to environmental impact through their operations. The study examines the practices that link environmental strategies (ES), environmental performance (EP), and environmental impact (EI) within SMEs enabling the transition to a low carbon economy and to accomplish sustainable development goals. Design/methodology/approach The study utilised an explanatory mixed-method research with 15 UK-based SME leaders and managers by a digital questionnaire and an elite semi-structured interview to examine the practices that connect environmental strategy, performance, and impact. Descriptive statistics analysed the questionnaire, while a practice-based view was deployed in the thematic analysis of qualitative data. Findings The study explored the relationship between environmental strategies (ES), environmental performance (EP), and environmental impact (EI). The study used a practice-based view to develop a novel framework outlining key practices that drive the relationship. This research extended the Practice-Based View by introducing a novel theoretical concept, the Environmental Practice-Based View in Organisations (EPBV) Limitations The study’s limitations include a small sample size, primarily due to the data collection occurring during the lockdown phase of the COVID-19 pandemic, which restricted sample diversity. The research was conducted in the UK, with significant advancements in the net zero agenda, which may limit the applicability of the findings to multiple socio-geographic contexts. Practical implications The study informs SME practitioners about their environmental positioning and current environmental issues to develop environmental awareness and accelerate the shift to a low-carbon economy. It also informs policymakers to address SME-specific environmental challenges. For regulators, the framework offers visibility, accountability, and transparency in defining the environmental impact of SMEs. In academia, the study provides a new theoretical framework EPBV to develop future models to explore the strategy, performance, and impact parameters. Originality/value The study contributes to the literature on environmental strategies and SMEs by deploying an environmental practice-based view to explore the practices characterising the relationship between environmental strategy, performance, and impact. |