Ahead of COP 29, the UN Climate Change Conference in Azerbaijan, British Chambers of Commerce (BCC) research has found a clear divide among SMEs on environmental targets.

The survey, by the BCC’s award-winning Insights Unit, shows around half of firms with more than 50 employees say they have a recycling target (50%) or energy consumption target (45%) in place. However, for firms with fewer than 50 employees, the figures fall to 35% and 25%, respectively.

The picture for all SMEs shows businesses are most likely to have a plan for recycling or waste reduction (38%). But less than a third of all companies (28%) have a written target for energy consumption, while only a quarter (24%) have set a goal for their carbon footprint/emissions.

A third of all responding SMEs (32%) also say they don’t have plans to introduce a recycling target – while another 29% are considering one. 39% say they won’t introduce energy consumption targets, whereas 32% are considering doing so. Meanwhile 39% have no plans to bring in carbon footprint targets.

However, while many SMEs may not have formal targets, most are engaging in efficiency or environmental measures with low energy lighting (65%) and recycling (59%) the most common.

Delegations from both UK and international Chambers, in the BCC network, will be heading to Baku, in Azerbaijan, for the United Nations’ Climate Change conference in the next few weeks.

Alex Veitch, Director of Policy at the British Chambers of Commerce said:

“SMEs have a crucial role to play in the UK’s transition to a greener economy – and many have a great story to tell.

“But our research shows that size really does matter when it comes to the capacity of

SMEs to have measurable environmental targets in place.

“With many small businesses continuing to deal with challenging economic conditions it’s often difficult for them to set goals and closely monitor their net-zero journey.

“We know that many SMEs value peer-to-peer learning and we’d encourage more businesses to share best practice on how environmental performance can be measured easily and effectively.

“It’s also important that policymakers consider what more can be done to support smaller businesses in this crucial area.”

Simon Cox, Head of Policy at the Milton Keynes Chamber of Commerce, said:

“The findings from this survey underscore a significant challenge for many small businesses, especially those with fewer than 50 employees, in setting and achieving environmental targets. While larger firms have more resources to implement formal sustainability plans, SMEs are often struggling with the day-to-day pressures of maintaining operations and managing costs. However, the commitment to environmental practices is evident, with many small businesses already adopting energy-saving measures and recycling initiatives, even if they haven’t formalised targets.”

“Looking ahead to COP 29, it’s clear that SMEs will play a key role in the UK’s overall environmental strategy. But for these businesses to fully contribute to the country’s green transition, more support is needed. This could include practical guidance on how to set achievable targets, as well as policies that make it easier for smaller firms to invest in sustainable practices. Collaboration across business communities, as well as between businesses and policymakers, will be essential in helping SMEs to meet their environmental ambitions and make a lasting impact.”

For further information on policy matters, please contact our Head of Policy as follows:

Northamptonshire – policy@northants-chamber.co.uk

Milton Keynes – policy@chambermk.co.uk