Fifth of small UK businesses going greener to become net zero with new eco lightbulbs, more recycling and tree planting

A FIFTH of UK SMEs plan to make going green a ‘core business strategy’ for 2023 - working towards becoming net zero.

A study of 1,000 small business owners found 75 per cent plan to maintain or increase investment in sustainability over the next two years.

Encouragingly, 80 per cent have now measured their carbon footprint, or plan to, in the near future.

And only 25 per cent reported the economic downturn is having a negative impact on their organisation's environmental commitments.

With only a small minority (3 per cent) set to decrease investment in environmental commitments.

Changes made by businesses include reducing energy consumption (44 per cent), recycling more (34 per cent), installing solar panels for power or switching to a renewable energy provider (31 per cent) and ramping up staff education (26 per cent). 

Exactly a quarter will adopt more sustainable transport while 19 per cent plan to engage in tree planting schemes.

And 28 per cent want to use greener suppliers and products within their supply chain.

The research, commissioned by climate tech startup, Ecologi, which has created its tool to help SMEs calculate their carbon footprint, also found 76 per cent believe having an environmental strategy is good for business.

Despite this, 44 per cent have not set any environmental targets for the year ahead but of those who already have a net-zero strategy, only 26 per cent are on track to reach these by 2050.

Elliot Coad, CEO and co-founder of Ecologi, said: “It's encouraging to see a number of business leaders making climate action a priority this year, despite tough economic circumstances, but they aren't being driven solely by a sense of moral obligation.

“There is also a strong business case for being more environmentally sustainable, from futureproofing your business to improving employee loyalty and motivation.

“Small businesses are showing the desire to do business better, and we must give them all the support they need not just to set accurate targets for their net-zero journey, but also to grow.”

Among the companies who have made green changes, 98 per cent have seen one or more positive impacts on their business, with 38 per cent believing they are actively bringing in more eco-conscious customers.

Other benefits they have seen range from enhanced social responsibility (43 per cent), a reduction in waste (43 per cent), improved brand image (43 per cent), and the ability to attract eco-conscious customers (38 per cent).

Of those facing barriers to follow through with more environmentally friendly choices, financial constraints are stopping 39 per cent.

For 27 per cent, finding the time in the day is the greatest barrier, while 24 per cent are yet to see a strong business return from making green changes.

Nearly four in 10 (37 per cent) believe the government should provide more support to SMEs seeking to transition to net zero.

Half are calling for better initiatives to support businesses seeking to become more environmentally sustainable, while 55 per cent are keen to see the provision of more grant funding.  

Of those who have set environmental targets, 59 per cent report they are on track to meet them - with 32 per cent saying they are ahead of their plans.

But eight per cent worry they are falling behind on their environmental targets, according to the OnePoll data.

Among those organisations who are yet to get started with net-zero, there is a desire to do so for 52 per cent if it was more straightforward.

More than four in 10 (41 per cent) of those who don't have a net-zero strategy would like their business to have one but feel confused about how to get started.

While more than half (52 per cent) of small business owners who haven’t measured their organisation’s carbon footprint said they would calculate it if it was free and straightforward to do so.