14 May 2023 , 08:00
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Small businesses are focusing more on growing their revenue, and gaining new customers – than meeting the 2050 net zero carbon target set by the government, research has found.
With the cost-of-living crisis continuing to impact SMEs, simply surviving as a business is among their top priorities for the immediate future – with over a fifth (22%) admitting they are not currently committed to becoming net zero.
A poll of 500 decision makers for such enterprises found that 18% feel their organisation has a lot of work to do before they can reach the government's targets.
And three in ten (29%) would be willing to face penalties in the future, if it meant they could focus for the time being on their own priorities, such as stabilising their business through the current economic climate.
The study also found that over three-quarters (78%) are aware of the net zero target – but admit their own part in helping achieve it isn’t their main concern right now.
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And nearly a quarter (23%) reckon they have a rough idea of requirements of the net zero target and what they’d need to do – but 17% don’t currently know anything about it.
But three in ten SMEs would face a penalty later if it meant they could prioritise growing their business in the immediate future (Hispanolistic/Getty Images)Sebastiaan Van Dort, associate director of energy and sustainability at BSI, which commissioned the research as part of its annual Net Zero Barometer, said: “Organisations have a lot to consider at what can feel like an unstable time.
“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.”
Despite other priorities, the research found 67% are committed to becoming net zero – with 43% feeling they only have some adjustments to make to get there.
However, 29% weren’t confident in their ability to identify their organisations’ current carbon footprint, according to the data from OnePoll.
Further research from BSI’s Net Zero Barometer, of 1,003 SMEs, found only 52% of businesses currently have some kind of net zero policy in place.
It also emerged 31% see such business changes as an opportunity to enhance their reputation with customers, while 30% think it will be seen as appealing to employees.
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From a consumer perspective, a poll of 1,029 adults revealed that, despite the ongoing cost-of-living crisis, 73% would be prepared to pay more for an item or service if there’s good green credentials on show.
However, over two-thirds of SMEs are committed to becoming net zero in the future (Martin Barraud/Getty Images)And 30% were even happy to always sacrifice quality of the end result, if it meant improved eco credentials all round.
Meanwhile, 83% 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.
“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:
- Gaining new customers
- Growing business revenue year on year
- Increasing efficiency
- Surviving as a business
- Reducing costs
- Maintaining high quality of the product
- Retaining existing customers
- Reaching net zero status
- Providing upskilling opportunities
- Attracting new talent