A new survey has revealed that half of small businesses already calculate their emissions, and 60% have plans to reduce carbon impact. However, two-thirds of small business owners are worried they don’t have the right skills and knowledge to tackle the climate crisis.
This first of its kind survey of businesses from UN-backed SME Climate Hub shows that small to medium-sized businesses (SMEs) need additional resources and guidance to reduce carbon emissions.
Top reasons small businesses cite for delaying climate action include a lack of skills and knowledge (63%), funding (48%) and time (40%).
Approximately 70% of SMEs need access to external funds to reduce their emissions faster or at all. However, only one-third of SMEs have been offered a financial incentive to reduce emissions.
8 out of 10 participants consider reducing emissions “a high priority,” with businesses making efforts to cut their greenhouse gas emissions through reductions to energy consumption and waste (82%), employee education (64%), and upgrades to facilities and equipment (52%).
Taking climate action leads to more resilient businesses – and SMEs reveal their growing understanding of its benefits. Small businesses are prioritizing climate action to enhance the reputation of their brand (73%); differentiate their business from competitors (61%); and meet customer expectations (42%). However, at 96%, SMEs overwhelmingly cited “the right thing to do” as a key motivation for taking climate action.
SMEs make up 90% of business worldwide and affect the livelihoods of over 2 billion people. To meet global Paris Agreement targets and avert the most harmful consequences of climate change, it is vital that small to medium-sized businesses are empowered to reduce their carbon emissions. The SME Climate Hub has created new resources to address barriers to action, empowering these businesses to reach net zero.
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