The rush to reach Net Zero has been one that most businesses have taken on board. A recent study, from the University of Portsmouth, has found that small businesses are eager to enhance their sustainability efforts, but are hindered by insufficient technology, resources, and government backing.
The research delved into the attitudes and actions of small to medium-sized enterprise (SME) owners with regard to transitioning towards a more environmentally conscious economy and achieving the target of net zero carbon emissions.
“This is the first study to examine the perceptions and behavior of SMEs towards the ongoing pursuit of a greener economy in the UK, including the key factor driving their actions and reasoning,” the researchers explain.
Small improvements
“There are over 5.7 million SMEs in the UK and they generate around 60 percent of commercial waste and cause over 43 percent of industrial pollution. They are critical to cutting carbon emissions, but if they’re overlooked by the government, they won’t help achieve the net zero target by 2050.”
The study focused on 26 businesses across seven industries, which included construction, health and safety, food and beverages, and tourism. Research has demonstrated that these sectors are major contributors to the total carbon footprint of various countries, such as the UK, Japan, US, China, Australia, and Canada.
According to the study, there is a disconnect between the management system, culture, knowledge, and actions of SMEs toward achieving net zero carbon emissions. They lack the necessary technologies, like environmental management systems, and are unconvinced of the benefits of improving their sustainability practices, resulting in a reluctance to invest in the right tools.
One of the primary challenges obstructing SMEs’ efforts to become more environmentally responsible is the complexities associated with their supply chain. When a supply chain is fragmented, it becomes difficult to obtain the data required to manage carbon emissions.
Lack of support
“We found there is a lack of support and enthusiasm within the supply chain which hampers SMEs’ behavior towards engaging with better environmental management systems and carbon management systems,” the researchers explain.
“In turn, this hinders their contribution towards the pursuit of net zero carbon emissions. This shows that SMEs can’t act alone; they require support and effective steering mechanisms to decarbonize their supply chains.”
In addition, the authors of the study observed that SMEs have reservations and doubts about the government’s net zero emissions plan, which leads to a lack of trust and comprehension of the potential advantages. Nevertheless, external parties like banks and customers exert pressure on SMEs to enhance their sustainability efforts and make more disclosures on environmental impact.
“By looking at the internal behavior of SMEs, we can explore the factors driving their reasoning and look at actionable strategies to get them working toward a greener economy,” the authors conclude.
