Easy eco wins for every kind of small business

Shifting to a truly sustainable business model can, understandably, feel like a mammoth undertaking, with many small and medium enterprise (SME) owners stumped on where to even start.

However, the good news is there are some small steps you can take that can result in a big impact.

From switching energy suppliers and rethinking travel policies, to changing pension plans and incentivising staff, there’s a huge array of updates you can make to improve the carbon footprint of your business – and attract more investment along the way.

We spoke to some experts in the field to highlight the most actionable steps.

“You can’t manage what you can’t measure,” says Paolo Taticchi, professor of strategy and sustainability at the UCL School of Management.

“SME owners need to comprehensively assess the carbon footprint of their organisation in order to begin tackling it.”

Luckily there are free tools – such as those provided by the Carbon Trust and Normative – that will help you calculate your organisation’s emissions.

Once you have a handle on how much of an impact your business is having and where your environmental opportunities lie, you can set realistic targets.

Just remember, when it comes to aiming for investment, this means sticking to industry standard figures.

Whether you are renting offices and warehouses or retail spaces and factories, buildings can often be one of the biggest causes of emissions.

“Tenant-landlord partnerships are imperative to reaching net zero,” says Sian Cooke, head of sustainable business at the sustainability consultancy Bioregional.

Engaging your landlord in discussions around energy efficiency and switching to renewable energy can be crucial.

“Workspace providers are increasingly bolstering their green credentials,” adds Cooke. “It’s a renters’ market, so shop around.”

Meanwhile, for SMEs that own their own premises, switching to a verified renewable electricity provider can make a huge difference.

Travel is another area where simple changes can have a major impact.

When it comes to travel, the first step should always be to examine whether it’s really necessary to travel or if, in fact, the job can be done remotely.

Cooke also advises you explore ways to green more day-to-day journeys, saying: “Think about incentivising low-carbon travel through cycle-to-work schemes or season ticket loans or investing in the switch to electric vehicles.”

For many businesses, reaching net zero will involve some form of carbon offsetting, reducing what you can and offsetting what you absolutely can’t.

For this to have real effectiveness, you need to choose your partner organisation carefully.

“Cheaper doesn’t always equal better,” says Taticchi.

Relying too much on carbon offsetting as an overall strategy would also be a mistake, he explains: “Prices of carbon offsetting are set to skyrocket, meaning this will become a very expensive commitment. SME owners should think ahead, and be careful of their dependence on offsetting.”

Surprisingly, one of the simplest and easiest ways for smaller businesses to clean up their act is via investments and pensions.

Diverting business investments and company pensions away from fossil fuels and other polluting industries can make a meaningful difference.

“Make my Money Matter calculates a green pension is 21 times more effective at cutting carbon than stopping flying, becoming a vegetarian, and moving to a renewable energy provider combined,” says Cooke.

People are at the core of any small business and getting staff and customers onboard is a big piece of the eco puzzle.

Environmental, social and governance (ESG) expert, Micael Johnstone, emphasises how important it is to make a whole business shift rather than just look at it from a management or regulatory standpoint.

“Educate and support your colleagues, help increase their awareness and nurture a net zero culture,” he says.

“For example, identify some motivated net zero champions, and make sure incentives are in place to help rather than hinder employees to support the net zero transition.”

Similarly, involving clients and customers is crucial.

“Actively seek and include passionate customers in your climate-focused review, design, and improvement activities – make it a fun, promotable point of business difference. Your customers will love to know they are part of making a difference,” adds Johnstone.

Attracting investment is crucial for all SMEs and going green is increasingly becoming a good way to do just that.

There are also specific pots of money that can be accessed for eco efforts and initiatives in the sustainability space.

For SMEs looking to impress ethically minded investors, James Alexander, chief executive at the UK Sustainable Investment and Finance Association, emphasises the importance of making your business accountable: “Consider the impact your business is having on climate change and prepare and stick to a plan signed off by the board to reduce these impacts with timelines and milestones,” he says.

When doing so, Alexander recommends considering the knock-on effect this will have across the business.

“Actively consider at a board level the impacts climate change might have on your business and your customers,” he says, adding that transparency is key.

“Compile and publish data on a range of ESG metrics, such as greenhouse gas emissions.”

Investing in sustainable switches isn’t always quick, cheap or easy, but doing so is a sure-fire way to future-proof any small business and help profits and the planet in the process.