Small businesses are more committed to being green than ever, according to a recent survey examining ethical supply chains, community activism, energy efficiency, and waste management.
The United Kingdom-based survey, conducted by U.K. financial services company Novuna Business Finance, queried 1,000 small business leaders in the past 12 months about which areas of sustainability had become more important compared to the year prior. The results revealed the biggest changes in five key areas, including: working with an ethical supply chain, increasing community activism, enhancing energy efficiency, improving packaging, and waste management.
On the supply chain side, more small businesses were considering an ethical supply chain compared to the previous year –– 26% versus 14%. Additionally, 30% of businesses with net-zero plans in place considered an ethical supply chain to be a top priority in the latest survey.
More business leaders also indicated they care about making a positive impact in their community (31% 2023 versus 22% 2022), creating local jobs (27% compared with 18%), and contributing to green initiatives (25% to 18%). Another 24% said they care about reducing the harmful impact their business could have on the community.
“Most businesses would probably concede that it has been a really difficult year, with new challenges seemingly at every turn,” Joanna Morris, head of marketing and insight at Novuna Business Finance, said in a statement. “However, the research suggests that, despite this, businesses are still making the time to focus on playing their part in the climate challenge. A certain amount of grit and determination is certainly evident and is also testament to the high importance and urgency that small businesses are placing on their efforts to be green and build a sustainable business.”
Many small businesses are also looking for energy savings, with more interest in energy efficiency and renewable use –– 32% in 2023 compared to 26% in 2022. That increase comes as energy prices have increased globally, causing many to look for ways to lower their bills and overall energy use.
“This is especially true for businesses with net-zero plans (35%) and those in the North East (43%),” the survey noted.
Lastly, businesses were also more focused on reducing their waste, because many small businesses are now liable under the Extended Producer Responsibility scheme, a concept where manufacturers and importers of products bear responsibility for the environmental impacts of their products throughout the product life-cycle, according to international group the Organisation for Economic Co-operation and Development (OECD).
The survey comes as the U.K. is considering the adoption of new environment, social, and governance reporting standards that would require public companies to standardize their climate-related risks and impacts.
