Only a fifth of UK small businesses plan to introduce more sustainable measures despite high-profile Government targets to cut emissions, a new report has found.
According to the British Business Bank, SMEs are responsible for a third of UK emissions but Green Ambition: unlocking sustainability opportunities for small businesses - a new report from Enterprise Nation, Aviva and the Enterprise Trust - found many have barely started the process of addressing environmental concerns in their business operations.
While most say they want to make a positive impact through business, only a third plan to track their carbon footprint. The report, written by think tank The Entrepreneurs Network, which surveyed more than 1,000 UK SMEs with polling firm YouGov, also revealed awareness of key climate change initiatives that could impact small business was very low.
Only 29 per cent have heard of or understand the Landfill Tax and fewer than one fifth understand or have heard of ‘emissions trading’ – set to be an important plank of the Government’s Net Zero policy.
Specific sectors were also in the dark about key policies affecting them directly. For example, only 13 per cent of construction, home repairs and improvement firms had heard of the UK Government’s Heat and Buildings Strategy which sets out the UK’s approach to decarbonise 19 million homes and introduce renewable energy.
The survey found that if financial support or grants were available, half of small firms would adopt environmentally friendly business models and solutions.
Emma Jones, founder of small business network and business support provider Enterprise Nation, said: “At the moment sustainability and environmentalism are high on everyone’s agendas – including SMEs but translating that into accessible, practical and affordable actions requires a major shift.
“This report shows that while there is no shortage of enthusiasm, there’s also very little real action either. Small firms face dramatically different challenges to large corporates, and we must develop a simple blueprint and offer clear advice to unlock innovation and hit climate change targets.”
Adam Winslow, CEO of Aviva UK and Ireland General Insurance, added: “Small businesses power our economy. Their ingenuity, enterprise and innovation will be crucial if the country is to have any hope of creating a sustainable, low carbon future, and meeting the climate challenge.
“We hope policymakers will use this report to make sure small businesses, and the invaluable contribution they need to make, are not overlooked as together we aim to build communities that are fit for the future.”
The report identifies three key recommendations for the government to support entrepreneurs to adopt green business models:
- Offer clear communication over the long-term direction of policy to plan investments in skills, technology, and organisational change.
- Financially incentivise and reward the adoption of green solutions.
- Champion SMEs that do the right thing.
Christofer Fisher of Manchester-based vertical farming start-up, Aztec Farms, wants to see greater recognition for Britain’s green SMEs from government and the private sector.
Although the report found that not all businesses would recommend making green changes, he believes it is essential that every business acts to stop climate change.
He said: “It is evident that change needs to come from every business to make the world a more sustainable place; we can’t rely on just the big players to make the slow moves.”
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