Smaller UK firms face climate change 'barriers'

On the day a major report by UN scientists warned that emissions could have could have a catastrophic effect on the climate in little more than a decade, a major survey of British firms found that their carbon footprint remained "a mystery" to most of them.

David Sapsted

9 August 2021

The survey of more than 1,000 firms by the British Chambers of Commerce (BCC) and telecommunications giant O2 found that only 11 per cent measured their carbon footprint, even though half of them accepted climate change was a major concern among their clients.While more than a quarter of larger companies - those with more than 50 employees - were taking action to measure their effects on the climate, only nine per cent of small businesses and only five per cent of micro-businesses were.Additionally, only one in seven companies currently have targets to reduce their emissions – a substantial drop from the one in five taking who reported taking action when a similar survey was conducted before the Covid-19 pandemic arrived early last year.In response to the survey, the BCC and O2 are launching a free, online hub to help businesses find out how to measure their carbon footprint, set targets and develop an overall net zero strategy.BCC said the new hub provided a one-stop shop for businesses "packed with information on how to apply for grants, where to seek specialist advice and practical tips from firms that have already taken action".Jo Bertram, managing director of business and wholesale at Virgin Media O2, pointed out that in May the government called on small businesses to "lead the charge" to reach the target of net zero by 2050 or sooner."But," she said, "our research shows that to do this, they need more support. From micro-businesses to larger firms, SMBs have told us they’re concerned about the environment, but in the wake of lockdowns and growing economic pressures, the majority are understandably facing barriers to improving their sustainability.“That’s why today we’ve launched the Net Zero Hub: to provide businesses of all sizes with the free, online resources they need to accelerate their net zero journey."Shevaun Haviland, director-general of the BCC, described the survey as "a real eye-opener" that showed how large the challenge was to meet the UK’s net zero target."The dual impacts of the pandemic and Brexit have been a huge body-blow to many businesses, so it’s unsurprising that targeting emissions has taken a back seat," she said.“But change has to come, and our Net Zero Hub makes clear that the earlier firms adapt, then the greater the advantages will be - they cannot afford to get left behind.“The climate challenge is one that affects every single one of us and business has a big part to play in tackling it. But the Government must also recognise that smaller firms will need access to grants, subsidies and other financial support to help them take effective steps on the journey to a greener future.”The survey found that the main barriers preventing firms from making their business more sustainable were high up-front adaptation costs (34 per cent) and a lack of finance (30 per cent).On the positive side, just over half of the businesses surveyed said they were planning to reduce their consumption of the likes of paper, food and plastics over the coming 12 months.Some 47 per cent also planned to reduce the energy they used through travel, and 40 per cent were looking to cut energy use at their premises.