A new report from the British Business Bank shows that almost a third of all current UK greenhouse gas emissions, including emissions from households, industry and government, can be attributed to smaller businesses.

The UK has a target to bring all greenhouse gas emissions to net-zero by 2050.

The impact of smaller businesses is an under-researched area of the market, and the British Business Bank report is one of the most detailed studies of this area to date.

The majority of these businesses (76%), have not implemented comprehensive decarbonisation strategies or actions, according to the report. This is in contrast to the majority of large businesses, of which their is a stronger obligation to have these strategies in place.

In the last five years, just 3% of the smaller businesses surveyed said they measured their carbon footprint and subsequently set an emissions reduction target.

The report focused on smaller businesses and the transition to net zero economy, highlighting the potential influence that these businesses have in reducing the overall carbon footprint of the UK.

Yet there is little to indicate that these businesses are actively seeking to learn more about their carbon statistics. More than half of those surveyed (56%) said they have taken no action to improve their knowledge on their environmental impact.

Catherine Lewis La Torre, the CEO of British Business Bank, has said: “Smaller businesses will generally have lower individual carbon footprints than their larger counterparts, but by broadening their vision and committing to action they can collectively produce a significant overall impact.

“We hope this report encourages business owners to review their business model, consider where changes can be made and to make the necessary investments to secure a sustainable future.”

Of those surveyed, 53% indicate they are not looking to prioritise decarbonisation in the next 24 months, a figure which indicates that more needs to be done to facilitate carbon-based change in this area of the market.

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“Action to mitigate the impacts of climate change is at tipping point, and it is crucial for smaller business owners to feel empowered, informed and supported in making the relevant steps,” comments Lewis La Torre.

This is further compounded by the report, which shows that more than a third (35%) cited costs as a barrier for reducing their carbon emissions, particularly in upfront capital costs and obtaining appropriate technology.

The frameworks to adopt new approaches and contribute to the wider net-zero objectives of the UK are well within reach of these businesses. Yet, over one in ten (12%) report that a lack of information was prevents them from taking action, there is a clear boundary from preventing this from happening.

When asked about actions these companies have already taken, 94% said they have taken one or more steps to reducing their emissions, although these steps were not enforceable by the company, such as encouraging users to install smart meters in their homes.

The leading factor for taking action was mentioned by 51% of businesses, who cited that it ‘made financial sense’ to align to net zero objectives.

This may, in part, account for why 47% of these businesses state reducing carbon emissions is a ‘very high’ or ‘high’ priority for them in the next 24 months.

The data used combines results from a survey of 1,200 smaller businesses across the UK as well as an analysis of public data sources.

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