We must all make a contribution to the growth of a more sustainable future. As the backbone of the UK economy, SMEs will play a critical role in ensuring this happens.
Every firm has an incentive to ‘go green.’ According to research, the SME community could save £3 billion by implementing basic energy efficiency measures.
Why is it critical for companies to become more environmentally friendly?
In June 2019, the UK became the first large economy to zero net global warming emissions by 2050. EARLIER THIS YEAR, the UK also committed to an ambitious aim of cutting carbon emissions by 78% by 2035, compared to 1990 levels.
If the UK meets these commitments, all firms must band together immediately to make adequate progress.
Communal accountability
SMEs account for 97% of the UK economy and 25% of the country’s carbon emissions. As a result, the UK will not achieve net-zero emissions unless the SME sector takes concerted action now.
Future expansion
As the globe moves toward a low-carbon future, people will want firms with whom they engage in sharing similar values. As a result, organizations must place a premium on sustainability in their consumer offers, overall strategy, and operations.
How can firms improve their sustainability?
The first step in becoming a more sustainable firm is to evaluate both your own and your supply chain’s carbon footprint. You may use a carbon footprint calculator (the Carbon Trust has one) to compare your performance to the Protocol’s guidance on greenhouse gas emissions.
Additionally, you can:
- Invest in energy-efficient technologies – switch to energy-efficient alternatives such as LEDs, which use around 11 times as much energy as halogen lights.
- Purchase a smart meter – smart meters communicate with your energy provider directly; they allow you to utilize energy more effectively and save money.
- Produce your renewable energy – although switching to a renewable energy provider is a good start, you can take it a step further by installing solar panels.
- Conduct supply chain analysis – according to McKinsey’s study, a typical B2C business’s supplier chain generates more carbon emissions than its activities.
- Electrify your fleet — an increasing number of businesses are converting to electric fleets in response to environmental concerns and ultra-low emission zones.
- Reduce waste associated with your goods — for example; you may switch to more recyclable or eco-friendly packaging.
How am I going to support my sustainability efforts?
Fortunately, there are an increasing variety of green financing choices available to assist companies in achieving their sustainability objectives.
Suppose you are the owner of a green company that provides a sustainable product or service or want to acquire a green asset such as a solar panel. In that case, Funding Options will connect you with a panel of verified green lenders willing to support sustainable efforts.
You may utilize their platform to quickly, simply, and securely access several green financing choices, allowing you to get closer to net zero.
The super-deduction covers solar panels and electric car charging stations, which enables eligible enterprises to leverage a 130 percent capital allowance when purchasing new equipment or machinery.
If you want to take advantage of this but cannot acquire the item altogether, you may utilize hire purchase financing – a sort of asset finance that allows you to purchase equipment in installments. There are eligibility requirements, and only a few green assets are listed.
It’s never been simpler to demonstrate your commitment to sustainability and cultivate client loyalty. Today, discover what you could be qualified for.
