Knowledge Centre
19th August 2009
Over half of SMEs are actively trying to reduce their impact on the environment, new research has revealed.
A survey of 7,000 UK SMEs by NetRegs.gov.uk - a website that advises on business compliance with environmental regulation - found that 55% had put in place measures to reduce damage to the environment.
Some 'green' activities were more prevalent than others. Some 84% of small businesses claimed to recycle company waste, up from 66% in the previous survey in 2007, while half of that (41%) said that they were trying to cut down the amount of business waste they generate. Meanwhile 28% said that they were making energy efficiency and water reduction improvements.
The respondents identified reduced operating costs, a more motivated workforce and improved relationships with customers as some of the benefits of employing such measures.
However, overall awareness of the environmental effects of business was found to be low.
While just 7% of those surveyed initially reported that they engaged in environmentally-damaging activities, the survey deemed that 46% admitted doing so after answering specific questions – for instance, concerning storage of waste, chemicals or fuel, and use of packaging.
And only one in five companies said that they planned to invest in improving their environmental performance over the next year.
The survey recorded a 75% drop in the number of SMEs with an Environmental Management System in place, compared to 2007. Over half said that an environmental policy was 'of no use' to their business in the current economic climate.
Debbie Chatting, from NetRegs.gov.uk, said: "It's good to see improvement in SMEs' green business activities, but efforts are clearly starting to fall back in many areas.
"Our survey has unearthed a level of denial among some small businesses who still don't acknowledge the harm that they can do to the environment nor recognise the business opportunity it presents to them. SMEs make up 99% of British business so their cumulative impact is huge; they simply cannot be apathetic or maintain indifference."
Small businesses show mixed progress on green issues

A survey of 7,000 UK SMEs by NetRegs.gov.uk - a website that advises on business compliance with environmental regulation - found that 55% had put in place measures to reduce damage to the environment.
Some 'green' activities were more prevalent than others. Some 84% of small businesses claimed to recycle company waste, up from 66% in the previous survey in 2007, while half of that (41%) said that they were trying to cut down the amount of business waste they generate. Meanwhile 28% said that they were making energy efficiency and water reduction improvements.
The respondents identified reduced operating costs, a more motivated workforce and improved relationships with customers as some of the benefits of employing such measures.
However, overall awareness of the environmental effects of business was found to be low.
While just 7% of those surveyed initially reported that they engaged in environmentally-damaging activities, the survey deemed that 46% admitted doing so after answering specific questions – for instance, concerning storage of waste, chemicals or fuel, and use of packaging.
And only one in five companies said that they planned to invest in improving their environmental performance over the next year.
The survey recorded a 75% drop in the number of SMEs with an Environmental Management System in place, compared to 2007. Over half said that an environmental policy was 'of no use' to their business in the current economic climate.
Debbie Chatting, from NetRegs.gov.uk, said: "It's good to see improvement in SMEs' green business activities, but efforts are clearly starting to fall back in many areas.
"Our survey has unearthed a level of denial among some small businesses who still don't acknowledge the harm that they can do to the environment nor recognise the business opportunity it presents to them. SMEs make up 99% of British business so their cumulative impact is huge; they simply cannot be apathetic or maintain indifference."
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