British Standards Institution (BSI) research has recently examined UK SMEs’ understanding of net zero. Over 1,000 SME leaders in the UK were polled for the most recent BSI “Net Zero Barometer” in order to track attitudes and development on the path to net zero. The study, which is now in its third year, discovered that the proportion of business executives who recognise the value of net zero has nearly tripled since the survey started. According to the survey, 82% of business leaders now feel sustainability and net zero are vital, up from just 30% in 2021, and more than four in five SMEs now demonstrate awareness and comprehension of how important net zero is. Those who asserted to fully understand the meaning of “net zero,” together with “aThe percentage of people who truly comprehend The Climate Change Act has increased over the previous two years, from 21% in 2021 to 43% this year. Furthermore, 79% of respondents claimed they were “extremely confident” or “slightly confident” in their ability to attain net zero.
Despite this rise in net zero knowledge, SMEs are still unable to translate their information into quantifiable action. For instance, BSI discovered that just 20% of respondents are tracking their progress towards net zero in a consistent manner, even though 52% of respondents claimed to have some type of net zero policy.Some people are achieving “easy wins,” but long-term tactics are found to be inadequate.
Many, but not all, SMEs are implementing so-called “easy wins” in the push for net zero emissions, according to BSI. zero. For instance, simple changes that can be implemented across their organisations, like cutting waste (44%), energy consumption (39%), switching to LED lightbulbs (38%), switching to clean energy sources (25%), insulate buildings (23%) and install their own renewable energy source (16%). On steps that will have an impact in the long run, however, the same action is not being done. As we previously said, only a fifth (21%) of small businesses have established a net zero strategy, 17% have made that policy publicly available, and only a fifth said they are tracking their progress towards net zero in a consistent manner.
The most frequent strategic actions were adopting standards to help reach net zero (24%) and training personnel on net zero aims and initiatives (17%).advertising green accomplishments to clients and vendors (24%), and zero targets (24%). But alarmingly, 17% of respondents stated they had not engaged in any of the survey-recommended steps.
It is related to research conducted by Sage and the ICC (International Chamber of Commerce) last year, which found that 53% of businesses surveyed said environmental sustainability is either “a priority in” or “central to” their strategy and operations, with the most frequent actions being waste reduction and energy efficiency improvements. However, 90% of the organisations surveyed stated that they encounter obstacles to implementing climate action, with financial limitations and difficulty identifying the best solutions being the most frequent obstacles.
An situation that makes moving towards net zero difficult
The investigation examined someIt may not come as a surprise that the cost-of-living problem emerged as the biggest danger to net zero commitments when considering the obstacles SMEs face in achieving net zero. The energy crisis (50%) and ambiguity around the government’s promises to the 2050 net zero objective (34%) were cited as the next two largest geopolitical events that could jeopardise business leaders’ efforts to achieve net zero (both at 63%). A surprising 33% of respondents responded that legislation is their main motivator for going net zero, emphasising the important role that government must play in encouraging SMEs to adopt change.
80% of survey respondents stated they do not think that, according to a second study by financial services firm Novuna, which interviewed 1,228 decision-makers at SMEs. The federal government or local governments are doing enough to promote the necessity of small enterprises taking climate action. Less than one in five SMEs indicated the government had played a significant role in helping them identify steps or measures they could take to cut emissions when it came to the activities firms could take to attain net zero. The respondents also expressed a desire for additional information on how to work with suppliers, with nearly a third (28%) of them stating that the UK government would be wise to release guidelines for supplier engagement in the decarbonization process.
In conclusion, Scott Steedman, director-general of standards at BSI, said: “This year’s barometer offers me reason for confidence. According to 82% of company leaders, reaching net zero and sustainability are vital to their business practises. growing commitment to decarbonising by 2050, along with confidence that it is meaningful to turn long term ambition into immediate action.
He added, “At a time where the attention of many SME leaders is being diverted by economic pressures, they want help to navigate a path that is both credible and realistic. SMEs want to understand both where they are on this journey, and what that transition means for them and their stakeholders.”
