SMEs have poor green credentials
One in five (21 per cent) SMEs in the South West say they do not understand the commercial benefits of being environmentally responsible according to a new study from Lloyds Bank
One in ten (8 per cent) admit that they are not doing enough to make their businesses environmentally responsible
Despite this, a third (35 per cent) of small businesses say better environmental practices are a top three priority for 2015
Lloyds Banking Group’s 2015 SME Charter commits to help 10,000 businesses become more sustainable by 2020, with new planning tool
Small and medium sized businesses (SMEs) in the South West are putting their competiveness and reputation at risk because they are not doing enough to improve their environmental credentials, according to new research from Lloyds Bank Commercial Banking.
The findings show that almost one in ten (8 per cent) firms accept they are not doing enough to take on environmentally responsible practices and that although a third (35 per cent) say green issues are a top three priority for the year ahead, one in ten (9 per cent) still don’t think that failure to adopt sustainable practices will have any effect on their business.
To help businesses improve their environmental credentials, Lloyds Bank has launched The Sustainability Planning Tool, an online planning aid that helps firms build action plans and set goals – for example, to make better use of resources, or to find new opportunities for cost savings. Businesses can also use the tool’s range of templates and guidance notes to write their own environmental policy.
David Beaumont, area director for SME Banking in South West, Lloyds Bank Commercial Banking, said: “The importance of environmental responsibility can be overlooked, often because firms don’t understand the advantages of sustainable business practice, but in today’s trading landscape, it’s an issue that’s become increasingly important, not least to customers.
“Not only can environmental responsibility bring lasting benefits – from increased efficiency and a wider customer base to better staff morale and talent retention – but it can help minimise business risk.
“In our latest SME Charter, we pledged to help 10,000 SMEs engage in more environmentally responsible practices by 2020. Through the launch of the Sustainability Planning Tool, we hope to tackle some of the misperceptions about increased sustainability, and offer practical steps that small businesses can take to evolve business practice as part of their strategy for growth.”
Engaged SMEs and the benefits reported
Of the eight in ten (79 per cent) of SMEs that have already implemented sustainable business practices, 76 per cent have seen clear benefits as a result. Specifically:
- Close to a half (49 per cent) of businesses believe eco-practices help reduce their operational costs
- Over three quarters (46 per cent) believe customers respond positively to sustainable initiatives
- Nearly a third (29 per cent) feel adopting sustainable business practices makes them a more attractive employer
- Just over one in seven (15 per cent) believe a focus on improving the environment strengthens their ability to win contracts
- The risks of overlooking sustainability
Whilst many SMEs are seeing the benefits, some are influenced to take action by the risks of not doing anything:
- More than half (54 per cent) fear that a lax attitude to environmental responsibility will make them appear outdated
- 46 per cent believe not being environmentally responsible could mean they fall foul of legislation
- A quarter (25 per cent) see customer backlash as a risk to neglecting responsibility to the environment
- One in four (25 per cent) believe failure to focus on sustainability will impact on their competitive edge
SMEs that aren’t engaged
Of those not taking steps to become more environmentally responsible, a third (31 percent) say they have never thought about the need to do so. One in ten (12 per cent) don’t believe there are any risks in failing to adopt environmentally responsible practices.
