MICROBUSINESSES AND NET ZERO
With the Net Zero target of 2050 set by the UK government, there has been increasing pressures on businesses to work towards this goal also.
However, for microbusinesses Net Zero may still be a recent concept for them. A recent report by Start Up Loans detailed findings that of the sample of 1,000 UK microbusinesses with up to 9 employees, 78% did not yet understand the concept of Net Zero. In addition, 67% of these businesses have not sought information to reduce their carbon footprint and many do not understand the meaning of other terms such as carbon neutral. This poses the question of how businesses of this size will move towards Net-Zero, particularly with 46% not knowing where to find the relevant information to make carbon reductions.
The report also mentioned how despite smaller businesses having low individual carbon footprints, collectively they can account for between 43-53% of UK businesses greenhouse gas emissions. Cost and feasibility were two barriers identified in the report that prevent businesses from making changes to reduce their carbon footprint.
Although some small businesses have adopted decarbonisation plans and are in the early stages of implementing them, the majority are referred to as ‘maturity level 2’ in the report. This refers to the businesses that have not made any changes towards net zero but are aware of why progress should be made regarding decarbonisation. This highlights the importance of assisting such businesses to solidify net zero plans and low carbon initiatives into their business model to reduce business related emissions.
