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Surge in eco-conscious small businesses hits record 12-month high, says research from Novuna Business Finance


News provided by

Novuna Business Finance

28 Sep, 2023, 07:01 GMT

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LONDON, Sept. 28, 2023 /PRNewswire/ -- Set against a year of erratic financial challenges, research from Novuna Business Finance reveals that small businesses remain steadfast and resolute in their commitment to being green. Surveying over 1,000 small business leaders in the last year, the research found increased emphasis on ethical supply chains, community activism, energy efficiency, and waste management.

The biggest green strides

  • Green Supply Chain Takes Centre Stage: Compared to 12 months ago, businesses are now placing greater importance on sourcing from and participating in an ethical supply chain (26% vs 14%). For those with net-zero plans in place, it was the top priority at 30%.
  • Giving something back: Small businesses are placing greater emphasis on the positive impact their business can make in the community (31% 2023 vs 22% 2022), creating local jobs (27% vs 18%) and contributing to green initiatives (25% vs 18%). There is also an emphasis on monitoring reducing the harmful impact businesses could have on the community (24%).
  • Energising efforts: In line with the Government recent announcement of a new sustainability hub to support and help SMEs save on their energy bills[1], small businesses are turning energy price hikes into an opportunity for greater efficiency and renewable use (32% vs 26% in 2022). This is especially true for businesses with net-zero plans (35%) and those in the North East (43%).
  • Less Waste: With businesses now liable under the Extended Producer Responsibility scheme[2] for the cost of dealing with packaging waste, there has been a significant increase in the number of businesses prioritising ways of improving packaging and waste policies (27% vs 19%).

Joanna Morris, Head of Marketing and Insight at Novuna Business Finance commented: "Most businesses would probably concede that it has been a really difficult year, with new challenges seemingly at every turn. 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."

[1] https://www.gov.uk/government/news/one-stop-shop-to-help-businesses-save-money-and-go-green
[2] https://www.gov.uk/government/news/businesses-urged-to-get-ready-for-reforms-to-cut-packaging-waste

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