Nearly a third of small businesses prepared to face penalties than try to meet costs of 2050 net zero carbon target
NEARLY a third of small businesses are prepared to face penalties rather than meet the government’s 2050 net zero carbon target due to the immediate cost pressures they face.
Research of 500 SME decision-makers revealed 29 per cent would rather take a hit in the future if they meant they could focus on other priorities now.
While 78 per cent are aware of the target, they admit their own part in helping achieve it isn’t their main concern right now.
Instead, immediate urgencies lay with stabilising through the current economic climate and the growth of the business.
Almost a quarter reckon they have a rough idea of the requirements of the net zero target and what they’d need to do, but 17 per cent don’t currently know anything about it.
Sebastiaan Van Dort, associate director of energy and sustainability at BSI, which commissioned the research as part of its annual , said: “Organisations have a lot to consider at what can feel like an unstable time.
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“These findings show that while sustainability is on the radar, there is a risk of it being pushed to the side and dealt with later, due to the cost-of-living crisis.
“Naturally, securing the future of the business and financial growth is a top priority.
“There are reasons to be optimistic, as the study shows there is a knowledge and willingness for organisations to do their bit for the net zero target and turn action into ambition.
“Ultimately, those that invest now in making their operations more sustainable stand to benefit in the long-term.”
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Despite other priorities, the research found 67 per cent are committed to becoming net zero, though 22 per cent were not.
And 29 per cent weren’t confident in their ability to identify their organisations’ current carbon footprint, according to the data from .
While 18 per cent admitted they have a lot of work to do to ensure their organisation can reach such targets, although 43 per cent reckon they only have some adjustments to make.
Further research from BSI’s Net Zero Barometer of 1,003 SMEs found only 52 per cent of businesses have some kind of net zero policy in place.
It also emerged 31 per cent see such business changes as an opportunity to enhance their reputation with customers, while 30 per cent think it will be seen as appealing to employees.
From a consumer perspective, according to 1,029 adults polled, despite the ongoing cost-of-living crisis, 73 per cent would be prepared to pay more for an item or service if there are good green credentials on show.
And 30 per cent were even happy to always sacrifice the quality of the end result if it meant improved eco credentials all round.
While 83 per cent were more likely to be loyal to an environmentally conscious brand.
Sebastiaan Van Dort, from BSI, added: “The importance is not lost on either organisations or consumers of the benefits of being sustainable.
“The difficulty organisations face at the moment is balancing stability and growth in such uncertain times with developing and changing how they work to meet the net zero target.
“Thankfully, as the research shows, there is desire to act, so when the time is right, implementing change is set to become a higher priority.
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“To do so, SMEs will benefit from a clear path as to how they’re going to achieve net zero, not only in their own operations, but also in their supply chains.
“With the right guidance - including the use of standards - businesses are more than able to rise to this moment.”
TOP 10 PRIORITIES FOR SME BUSINESSES
1. Gaining new customers
2. Growing business revenue year on year
3. Increasing efficiency
4. Surviving as a business
5. Reducing costs
6. Maintaining high quality of the product
7. Retaining existing customers
8. Reaching net zero status
9. Providing upskilling opportunities
10. Attracting new talent