A core component of our Making Business Greener campaign¹ work is to support our business community to a more sustainable future, and lower their exposure to risk. The large majority of our commercial client-base are small and medium-sized businesses (SMEs).
The positive impact one small business can have on the planet may appear minimal when compared to the activity of the 100 businesses responsible for 71% of global greenhouse gas emissions². However, the sheer number of SME’s means the aggregate impact of SMEs to be pivotal. SMEs make up 90% of businesses worldwide³, and comprises 99.9% of all UK business⁴ – giving them a key role in reducing carbon emissions and fostering greener supply chains.
SMEs constitute nearly the entire business landscape in the UK, their collective impact on the environment is substantial across all sectors – manufacturing, retail, services, and technology – each presenting unique opportunities and challenges for implementing sustainable practices. Furthermore SMEs are integral components of Sustainable Supply Chains⁵. As suppliers, partners, and customers of larger corporations, an SME can influence and are equally as influenced by the sustainability practices of these bigger players – such as the NHS⁶, Government Procurement Portals⁷, to Higher Education⁸. In contributing to more sustainable supply chains can help reduce the environmental footprint of an entire industries.
SMEs, by definition of their size are also ideally placed to demonstrate flexibility and innovation⁹, which is advantageous in adopting green practices. They can swiftly implement new technologies and processes that larger organisations might find cumbersome to integrate. This can include renewable energy installations, energy-efficient equipment, waste reduction techniques, to staff engagement. This agility to trial and adopt low carbon solutions is a leadership opportunity for environmental stewardship within their respective industries.
There are also the additional economic advantages for a business from improved efficiency¹⁰ and reduced waste – energy-efficient operations lower utility bills, and sustainable waste management practices can reduce disposal costs. Furthermore, as consumer awareness and demand for sustainable products¹¹ grow, businesses that prioritise environmental responsibility can gain a competitive edge¹². SMEs that position themselves as green businesses can attract environmentally conscious customers and investors, enhancing their market position and profitability.
We are seeing a rapidly changing regulatory landscape with¹³ compliance with environmental regulations are becoming increasingly stringent. In being proactive in sustainable practices an SME is better positioned to comply with current and future regulations. Examining your carbon footprint and assessing climate risk can predict and mitigate environmental impacts¹⁴ – such as supply chain disruptions due to flooding, extreme heat or resource scarcity. By managing these risks, SMEs can ensure greater business continuity and better resilience.
While the benefits are clear, SMEs also face challenges in becoming greener. These include limited financial resources, lack of expertise, and the perceived complexity of implementing sustainable practices. A further lack of resources can also include lack of personnel, knowledge or time to dedicate to the issue.
To help fill this gap, we have our Making Business Greener Campaign¹⁵ – We can give up to 4 hours of free consultancy and sign-posting to resources, to help you calculate and reduce your businesses carbon footprint.
Through this programme, Naturesave business clients can draw on critical professional knowledge which is key to making the transition to the low carbon economy.
Want to get in touch with us? – contact us
- https://naturesave.co.uk/ethical-business-insurance/making-business-greener/
- https://www.activesustainability.com/climate-change/100-companies-responsible-71-ghg-emissions/?_adin=02021864894
- https://smeclimatehub.org/sme-survey-barriers-to-climate-action/
- https://www.gov.uk/government/statistics/business-population-estimates-2021/business-population-estimates-for-the-uk-and-regions-2021-statistical-release-html
- https://www.oecd-ilibrary.org/industry-and-services/oecd-sme-and-entrepreneurship-outlook-2023_8f68434d-en
- https://www.england.nhs.uk/greenernhs/a-net-zero-nhs/
- https://www.gov.uk/government/publications/procurement-policy-note-0621-taking-account-of-carbon-reduction-plans-in-the-procurement-of-major-government-contracts
- https://www.eauc.org.uk/scef
- https://www.weforum.org/agenda/2023/03/small-businesses-sustainable-inclusive-world/
- https://www.researchgate.net/publication/342617743_Cost_Reduction_and_Sustainable_Business_Practices_A_conceptual_approach
- https://www.businessnewsdaily.com/15087-consumers-want-sustainable-products.html
- https://www.forbes.com/sites/forbesbusinesscouncil/2023/12/19/the-benefits-of-going-green-for-businesses/
- https://www.carbontrust.com/news-and-insights/insights/climate-reporting-in-a-changing-regulatory-landscape
- https://www.pwc.com/gx/en/services/sustainability/publications/risks-and-opportunities-of-climate-change-on-business.html
- https://naturesave.co.uk/making-business-greener/
