According to a 2022 European Commission report,¹ an increasing number of SMEs are gaining sustainability-related skills and technology. More than half have or are planning to invest in reducing emissions and tackling climate-change impacts.

But SMEs continue to face challenges in boosting sustainability due to economic uncertainty and a relative lack of time and resources. We spoke to UK SME owners and advisers about why building sustainability is important and how they’re doing it.

What is meant by sustainable business?

Harvard Business School defines corporate sustainability as doing business without negatively impacting the environment, community or society.

Why is sustainability so important?

There is increasing evidence that sustainability practices boost long-term corporate value. This includes PwC research showing 76% of consumers will stop buying from companies that treat the environment, employees or community poorly.²

Paul Coleman, from consultancy Carbon Clarity, says building sustainability can help reduce your costs, enhance reputation, retain employees and improve investment opportunities. For example, you can use carbon-reduction certificates for marketing and improving investor relations.

Bellevue Law aims to provide lawyers with flexible working in a purpose-driven business. It was the first UK law firm to receive Good Business Charter status and is currently seeking B Corp accreditation, which verifies high standards of social and environmental performance.

How do you start a sustainable business?

“We wanted to measure and reduce our carbon emissions but weren’t sure where to start,” says Florence. “We wanted a transparent and rigorous analysis, so we commissioned climate specialists Zevero to do this for us. This gave us confidence that our emission data is accurate, and we know where to focus on changes.”

Some actions can be time-consuming, so you can start with smaller ones. One of Bellevue’s first changes was installing emission-saving smart extension leads in its head office and teams’ home offices.

The next was starting a sustainability committee to help set and work towards the firm’s targets.

Metrikus then used a carbon calculator to set its emissions base and started taking steps toward sustainability. These include cycle-to-work and recycling schemes, offsetting emissions and optimising its supply chain towards renewable energy.

Finally, Metrikus created a sustainability report, which adds transparency and independent verification of its actions.

A good starting point is to audit your firm, and Rob did this using the free B Corp impact assessment. “It shines a light on all your business practices and where you’re doing well or not,” he says. “It’s the most holistic approach to business sustainability we’ve come across. However, it does require time to run the process in full. For a product-based business, most impact will be in your supply chain, so I recommend looking at how your materials are made, where they come from and considering ‘environmentally preferred’ alternatives. Also, speak to other companies who have been successful in building sustainability. They will happily share tips as we’re all in this together.”

“We place a heavy focus on using carbon-neutral suppliers and check this right up the chain,” he says. “We also use low-powered 30-watt computers and make Zoom calls instead of holding in-person meetings. Small changes can tot up."

Solving the challenges

Rob says Presca’s biggest challenge has been boosting supply-chain sustainability.

“Minimising environmental impact in products is often a slow process, but we wouldn’t sacrifice this ambition,” he says. “When starting, we wanted UK supply chains. But we couldn’t find the capabilities and capacity for the most technical sportswear, so we had to manufacture in Europe. We’re moving some of this back to the UK, and now we’re happy with our manufacturing set-up.”

Paul adds: “Building sustainability is a process of change. Technical language in the sector confuses business leaders, which puts them off. There are costs involved but - given the energy crisis - recording, reporting and reducing your emissions will substantially cut costs. It’s a positive journey, so don’t be overwhelmed.”

Seek advice

It’s important to take advice if you want to build sustainability in your business. Speak to us for ideas on how to begin your sustainability journey.