It’s not easy being green
5 October 2007
More than a third of businesses (38%) believe it would be difficult to reduce their environmental footprint in any of their business activities, according to research from the HSBC Small Business Research Trust.
While all owner managers acknowledged their business has an impact on the environment and one in ten think their impact is high, the incentives to take positive action to become more eco-friendly are low.
Environmental challenges
Transport and supply chain hold the biggest environmental challenges to small businesses, with 50% and 43% respectively saying it would be difficult to make any reduction at all in the impact of these activities. Over a third (39%) also said it would be not be easy for them to be more eco-friendly in their use of energy and water, and 34% said implementing greener waste management policies would be problematic.
Over two-thirds (70%) of small businesses say they have taken some steps to become more environmentally aware and eco-friendly, however, all the businesses surveyed reported a number of barriers to further reducing their impact on the environment. The leading factors are the absence of incentives to change (50%), the cost of solutions (39%) and the lack of support from government agencies (39%).
Barriers to change
Limited access to information and poor knowledge about how to shrink their environmental footprint is also a significant barrier to change; 36% reported that the lack of one single source of clear information holds them back from becoming more eco-friendly and 23% said they had no knowledge of the benefits that might accrue from reducing their impact on the environment.
Promoting positive action
More than half (56%) of small businesses reported that the most useful tool to help them lessen their environmental footprint is access to free, high quality advice, with 48% citing financial assistance with purchasing equipment as a key incentive to change.
Huw Morgan, head of business banking at HSBC, said: “Only a small number of businesses in the survey think their activities have a high level of environmental impact but in reality every business, large and small, has an eco-footprint that can be reduced. Small businesses account for around 90% of companies in the UK so, while individual businesses may feel their influence is negligible, the sum of all the parts has significant impact.
“Changes don’t always have to be costly or on a grand scale to make a difference – simple things, like recycling waste as you would at home, turning off equipment at the end of the day and giving printer cartridges to charity shops all add up.”
HSBC and sustainability
HSBC is embedding sustainability into its core financial services business. This starts with its own operations. The bank measures its use of energy and water and production of waste and carbon dioxide across its offices around the world. It has also set targets to reduce these.
HSBC announced a carbon finance strategy earlier this year that outlined its role in helping to finance a shift to a low-carbon economy. The Group has also published a range of sector policies that raise the environmental standards of its lending and investments. In 2005, HSBC became the world's first major bank to become carbon neutral. It was recognised as the FT Sustainable Bank of the Year in 2006.
