‘Most SMEs recognise importance of net zero yet grappling with hurdles’

Most UK SME leaders (82 per cent) recognise importance of achieving net zero target but grapple with increasing costs and a lack of clarity around a credible path to net zero.

According to a research published by BSI, awareness of the importance of achieving net zero targets has almost tripled to 82 per cent in two years, highlighting the opportunity for organizations to partner across their supply chains to accelerate progress.

While many SMEs have already delivered on ‘quick wins’, such as reducing waste (44 per cent) or switching to LED bulbs (38 per cent), the research finds there is more to be done on strategic thinking. 52 per cent of those questioned had a net zero policy, while 17 per cent – some 929,900 organizations – have still to take key actions on becoming more sustainable, meaning they may risk falling short of  realizing their ambitions without further action.

Nearly two thirds (63 per cent) cited the cost-of-living crisis as the biggest inhibiting factor, followed by the energy crisis (50 per cent). Many are calling for extra financial support- Over half believe that clean energy subsidies (56 per cent) and government grants for new projects (52 per cent) would help them meet targets.

Notably, SMEs are increasingly recognizing the financial value of accelerating progress towards net zero. Two fifths cited the prospect of reduced costs as one of the main benefits, while 31 per cent believed that doing so would be positive because it would enhance their image and reputation.

Scott Steedman, Director-General, Standards at BSI said: “This year’s barometer gives me cause for optimism. With 82% of business leaders telling us that sustainability and achieving net zero is important to their business practice, we are seeing a growing commitment to decarbonizing by 2050, along with confidence that it is meaningful to turn long term ambition into immediate action.

“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. They can benefit from having a clear roadmap  to how they’re going to achieve net zero, not only in their own operations, but also in their supply chains. Our research shows that with the right guidance – including the use of standards – SMEs are more than able to rise to this moment.”