With much of the noise in the press relating to big business, how should small businesses respond to the climate change challenges?

The good news is that SMEs can make a significant difference.  A key report from the British Business Bank (BBB) released last month, Smaller businesses and the transition to net zero, highlights that the proportion of emissions from smaller businesses compared to larger ones is split at around 50:50. The pressure of having to account to stakeholders and report regularly provides some impetus for big business to reduce its carbon footprint.  What might operate as a driver for SMEs, other than knowledge that they are doing the right thing?

The BBB report highlights physical actions that smaller businesses may take.  Switching to green or renewable energy suppliers and improving building insulation should deliver cost savings and lower energy bills, along with recycling and choosing lower carbon transport. According to the BBB report 94% of SMEs have taken at least one physical net zero action to date, which is really encouraging.  

Small businesses have everything to gain and nothing to lose from embracing the opportunities of the transition to a net zero economy.  It makes sound business sense.  There is plenty of help out there, and investors want to invest in sustainable businesses with compelling business models that take into account ESG factors.