What can SMEs do this year to reduce their emissions?
2025 still sounds like the future to me. 2000AD meant weird and wonderful scifi when I was a lad, and now we’re halfway from that date to the UK’s deadline for achieving net zero emissions.
The optimistic view is that we’re more or less on track. From 2022 to 2023, the UK’s total carbon dioxide emissions fell by around 22 million tonnes, mostly thanks to wind power replacing fossil fuel generation. That’s a drop of more than 5%, so if we can remove a similar amount each year for the next two decades, we’re doing OK.
Realistically, cuts are likely to get progressively harder as we get closer to net zero and have to deal with systemic challenges and hard-to-decarbonise sectors. But there is still some low-hanging fruit to be won, including some relatively simple actions which any SME can take to reduce their emissions.
Here’s our suggestions for five steps that most businesses can take this year (if you’ve not already!). Some may require a bit of investment, but targeted action should rapidly pay for itself in efficiency gains and business improvements – and put you in the best position for sustainable growth.
1. Switch to low-carbon electricity.
For most SMEs, this will be the simplest way to minimise your indirect carbon footprint (scope 2 emissions in the terminology used by the Greenhouse Gas Protocol). Check out specialist all-renewable suppliers such as Good Energy and Ecotricity, or see if your current supplier has a low-carbon tariff. Yes, it may cost a little more than fossil-based tariffs, but most organisations can easily recoup the difference with a few targeted energy-saving initiatives.
2. Support electric vehicles.
If you run your own fleet of vehicles, going electric can provide big reductions in direct (scope 1) emissions – and there’s some very welcome grants and incentives on offer. Otherwise, look at the EV salary sacrifice schemes offered by companies such as Octopus – a great way to reward and retain staff, especially if you can install on-site chargers which could also give hybrid workers an extra reason to come in.
3. Look for efficiency wins.
Whatever your business, there’s likely to be some small changes you can make to your operations which will cut energy consumption and costs. See what specialist support is available for your sector from trade bodies and support organisations – for example, manufacturers can get practical help from Make UK or the High Value Manufacturing Catapult.
4. Get carbon literate.
It’s important that your team understands the need for emissions reduction, and what you can practically do about it. Look at putting a few people through accredited training which will empower them to drive action through your organisation. The Carbon Literacy Project offers one-day training for individuals, as well as targeted support for SMEs. Also check out the support available from organisations such as the UK Business Climate Hub (part of the international SME Climate Hub) and Green Economy (which offers free membership for SMEs in West Yorkshire or Greater Manchester).
5. Make sustainability part of your strategy.
The UK has a legal commitment to reaching net zero emissions, which means every organisation has a role to play – and it’s wise to take the lead now to avoid shocks later. When you next update your company strategy, add a sustainability section setting targets for emission reductions and outlining plans for achieving them. A strategy is always a work in progress, so don’t worry about getting all the details right to start with – the key thing is to set a destination.
Whatever you do, you should share it with your customers and stakeholders through your media and marketing activity.
Being able to demonstrate climate leadership can give you a competitive advantage with potential customers, including major corporates which are looking to reduce emissions from their own supply chains (scope 3 in the GGP jargon).
Just changing your electricity supplier probably won’t win many front pages, but trade and regional business journalists often love a story about a company taking action to reduce their emissions – especially if others can take inspiration from your leadership.
At Othersfield, we specialise in communications and PR around emissions reductions and sustainability. Get in touch if we can help tell your story.