It has called on the Mayor, the London Development Agency and London Remade to be more ambitious about providing targeted support to SMEs.
This follows its Buying Recycled report published earlier this year, which accused the London Development Agency and London Remade of encouraging mainly large businesses to buy recycled, although 99% of Londons firms have less than 50 employees.
London Assembly environment committee chair Darren Johnson said it was the easy option for the organisations to focus on large firms and it was inconceivable that the Mayor had ignored the SME sector.
With smaller firms accounting for a third of employment in the capital, Johnson said that they had significant procurement power and were crucial to the success of the capitals economy.
But London Remade, in its response, said that SMEs made up the smallest spend figures but the largest percentage contribution after London boroughs. The organisation said SMEs have been receptive to the purchase of recycled products through the Mayors Green Procurement Code, particularly when no additional costs are involved.
The LDA and London Remade have responded positively to the committees report, adding that its recommendations will be taken into account as part of the review of the Mayors Code.
But London Remade defended its work with large signatories to the Mayors Code, saying SMEs throughout the supply chain were involved.