New research has identified the top activities being undertaken by UK SMEs to achieve their net zero targets, with the vast majority of companies now taking action or planning to do so.
According to a survey of financial decision makers in SMEs across the UK, 64 per cent say they have either a strategy in place to reach net zero emissions or have started the planning process.
Lloyds Bank asked over 1,000 SMEs with at least ten employees a series of questions, including their general perceptions on sustainability, awareness of the government’s 2050 net zero target, their own progress towards net zero, and their perceived benefits and barriers to achieving it.
The results show that climate action remains on the agenda for a significant majority of businesses despite difficult economic conditions, with 83 per cent saying sustainability has become more important in the past 12 months.
5 steps to net zero
The research splits SMEs into different stages to establish a baseline of where they are in their net zero journey:
- 9 per cent recognise the importance of net zero and are getting started by considering, researching and planning steps they can take
- 15 per cent are focusing on short-term wins and employee engagement but are yet to start measuring their greenhouse gas emissions
- 28 per cent have begun the process of measuring their emissions and are planning for how to reach net zero
- 36 per cent have measured their emissions and have a plan in place to reach net zero
- 7 per cent say they have already achieved net zero
The top three activities being undertaken by SMEs are recycling and reducing waste (62 per cent), reducing energy consumption (60 per cent), and sourcing renewable energy (37 per cent).
‘Growing awareness leading to increased action’
Just 5 per cent of the businesses surveyed said they were not considering or taking any action towards net zero.
Elyn Corfield, CEO of Lloyds Bank Business & Commercial Banking, said: “The progress SMEs are making on their net zero journeys is crucial to enabling us all to reach the 2050 target, and their dedication to the task, especially given the range of competing priorities they face every day, is to be admired.
“That growing awareness leading to increased action is exactly the path we need to take. The survey also encouragingly highlights net zero ’heroes’, companies which can act as champions for all businesses on their road to net zero, share knowledge, and pave the way for a growing number of SMEs to reach their sustainability targets.”
