Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
young startup business people couple working on laptop computer businesspeople group o SBI 322275780
young startup business people couple working on laptop computer businesspeople group o SBI 322275780

Small businesses behind a third of the UK’s emissions, but lag in net zero fight

By August Graham, PA City Reporter

The UK’s small businesses are responsible for nearly a third of the country’s greenhouse gases, yet are falling behind their larger counterparts in efforts to slash emissions.

A tiny 3% of smaller businesses said that they have measured their carbon footprint at any point in the last five years and set an emissions reduction target.

The data comes from a survey by the British Business Bank, a Government-backed institution which supports small and medium-sized companies.

Its chief impact officer, Shanika Amarasekara, warned that companies who sell to big businesses might start losing contracts if they do not slash emissions as larger firms are working to rid their supply chains of carbon.

“What’s going to happen in the future is that they will be part of supply chains of larger businesses that are going to be making those demands of them,” she said.

“It’s becoming a licence to operate. It is going to become the competitive differentiator for smaller businesses.”

Big business has been falling in line in recent months with a Government pledge to slash net emissions to zero in a bid to slow climate change.

Yet smaller businesses are lagging behind their larger rivals. And together they account for around half of all emissions from businesses, making it just as important that they decarbonise if the UK is to meet its targets.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

“More than half of smaller businesses say they’re not ready to prioritise decarbonisation, so clearly more needs to be done,” said Catherine Lewis La Torre, the Bank’s chief executive.

Yet, she said, 11% of companies have taken loans to fund moves to net zero, while 22% said they are open to doing so.

Some businesses might even have used their Government-backed emergency Covid loans, which were administered by the Bank, to fund their net zero transition, she said.

But lenders will also need to step up to make sure more money is available for companies to slash their emissions.

“If you think about those 1.3 million businesses that would consider external finance, that has to be an opportunity for the private sector,” she said.

Whereas 94% of companies said they have taken at least one action to reduce their emissions, their efforts often did not go far and could simply be installing a smart meter.

Among those who took action, 51% said they did so because it made financial sense.

The Bank found that 52% of smaller businesses in the UK are in what it called “carbon complacent” or “carbon exposed” categories.

It means these companies have attitudes to the climate that simply react to what is happening around them, or are simply disengaged towards cutting emissions.

Recent Post: