Four in ten small businesses owners believe embracing green initiatives has made them more profitable

Researchers polled 500 small businesses and discovered that nearly two thirds (64 percent) British business owners, and senior business decision makers, think it’s important to embrace environmental issues, with many also seeing financial benefits as a result.

From those polled, 45 percent say that the changes have saved them money, while a third (32 percent) have seen a direct profit increase.

40 percent believe that becoming more sustainable has attracted more customers and enhanced their reputation within the local community (44 percent).  Nearly half (46 percent) believe that being environmentally conscious has helped future proof their business, making it more profitable in the long run.

According to new research by Smart Energy GB, when it comes to being more eco-friendly, 40 percent now turn off devices and machinery when they’re not in use, 36 percent always recycle old IT equipment and 36 percent have even introduced a recycling policy.

One in three (35 percent) admit they are keeping a closer eye on their energy bills, with 76 percent of those polled saying they have had a smart meter installed, helping them manage energy costs (54 percent), and manage their energy usage (53 percent).

Replacing light bulbs with LED alternatives (33 percent), using environmentally friendly products (32 percent), reusing plastic carrier bags (32 percent) and going paperless (31 percent) are other steps that small businesses are taking to reduce their impact on the environment.

A quarter (27 percent) use eco-friendly or biodegradable packaging, with a further 26 percent making the commitment to become single use plastic free.

Other ways in which small businesses are committing to become more sustainable include turning down the boiler temperature (25 percent), updating their fleet to electric vans and vehicles (24 percent), reducing business travel (23 percent), implementing a work from home policy to reduce commuter miles (23 percent) and changing to a renewable energy supplier (23 percent).

Victoria Bacon, a Director at Smart Energy GB, said: “We can see from the research the kind of steps owners are taking to make their businesses more sustainable, and that they are seeing the benefits. 

“Getting a smart meter installed is one small thing small business owners can also do. The data from smart meters can help give owners more control over their business’ energy spend, help them monitor their energy usage and identify where costs savings can be made. By helping them to take steps to be more efficient with their energy use, they can also have a positive effect on a business’ carbon footprint, as well as helping them save money.”

Green-minded small business owners are also pushing their sustainability objectives within their supply lines, with a third (31 percent) only choosing third-party suppliers based on their eco credentials. A further 54 percent hunt out green suppliers wherever they can.

One in three (36 percent) prioritise buying goods from local suppliers to limit their product mileage, with over half (56 percent) doing so wherever possible.

Four in ten (43 percent) say that being sustainable has given them a marketing advantage over their non-environmentally friendly competitors, while 25 percent believe that it has given them a financial edge. 

In fact, 45 percent believe that consumers want to use businesses that are eco-friendly, with a third (31 percent) adamant that people will pay more for a product or service that is sustainable or green.

The positive impact of prioritising green initiatives is not only being felt on the bottom line, however.

41 percent of the 500 SME owners say it has helped attract employees, with almost half (45 percent) encouraging their workforce to get involved with sustainability efforts through dedicated training sessions. A further 49 percent ask employees to do their bit informally.

One in three (32 percent) say they choose suppliers who demonstrate their sustainability credentials over less eco-friendly ones, with a further 54 percent admitting that they hunt out green suppliers wherever they can.

WHAT SMALL BUSINESS OWNERS ARE DOING TO SAVE CASH AND HELP THE ENVIRONMENT:

1. Turning off equipment when not in use
2. Recycling old IT equipment
3. Creating a recycling policy
4. Keeping a much closer eye on energy bills
5. Replacing lights with LED alternatives
6. Using environmentally friendly products eg for cleaning
7. Reusing plastic carrier bags
8. Going paperless
9. Using local suppliers
10. Using eco-friendly/biodegradable packaging