In today’s world, where the impacts of climate change are hitting closer to home with each passing day, the urgency to act has never been greater. From extreme weather events to rising sea levels, the signs of a planet in turmoil are all around us. At kroov, we’re firm believers in the need for every business to tackle climate change head-on, because it is the right thing to do for our planet.
Real-World Struggles
But we also understand the real-world challenges businesses face. Juggling the needs of various stakeholders often means sustainability initiatives have to fight for their place in the budget, with the deciding factor usually coming down to the perceived ROI of imbedding sustainability. We get it – running a small business is tough, especially in times like these.
But amongst the doom and gloom, there lies a glimmer of hope: the power of sustainability. By embracing sustainable practices, businesses, especially SME’s, can not only mitigate their environmental impact but also unlock a world of benefits.
Leveraging Sustainability for SME Success
So, let’s explore how SMEs can lead the charge towards a brighter, more sustainable future:
- Supply Chain Impacts: SMEs may be small in size, but they pack a punch when it comes to carbon emissions. In the UK alone, SMEs are responsible for a whopping 63% of business emissions. That’s a staggering figure and underscores the need for SMEs to take action to reduce their carbon footprint.
- Competitive Advantage: In today’s competitive market, standing out from the crowd is more important than ever. The British Chamber of Commerce estimates that only 11% of UK businesses currently measure their carbon emissions, offering a significant competitive advantage to those that do. By embracing sustainability, SMEs can differentiate themselves from the competition and attract environmentally-conscious consumers and investors. It’s not just about doing good; it’s also about having a thriving business.
- Integral in Climate Action: SMEs may not have the same resources as large corporations, but they play a crucial role in the fight against climate change. With SMEs employing 61% of the UK’s workforce, their collective impact cannot be ignored. By taking steps to reduce their environmental footprint, UK SMEs can contribute to meaningful change on a global scale.
- Financial Returns of ESG Adoption: Integrating environmental, social, and governance (ESG) factors into business strategies can improve overall returns, with nine out of ten asset managers surveyed believing so (PwC). For SMEs, this presents a compelling opportunity to drive growth and profitability while making a positive impact on the planet.
- Consumer Preferences: Today’s customers and clients are more eco-conscious than ever before. They want to support businesses that share their values and prioritise sustainability. A substantial 32% of consumers are willing to pay more for goods and services if it ensures brands reduce their carbon footprint (Deloitte). By aligning with consumer preferences, SMEs can build brand loyalty and attract a loyal customer base.
- Cost Savings and Efficiency Improvements: Sustainability isn’t just good for the planet; it’s also good for the bottom line. By reducing energy consumption, minimising waste, and optimising resource use, SMEs can lower operating costs and improve profitability. On average, a 40% reduction in emissions results in a 15% improvement in financial performance (McKinsey & Company). It’s a win-win situation for both businesses and the environment.
- Investor Confidence in Sustainability: Investors are increasingly looking to put their money into companies that are committed to sustainability. 60% of investors intend to increase their investments in companies that prioritise sustainability over the next five years (Gartner). Sustainable practices can attract investment and enhance SMEs’ financial stability.
- Employee Demand for Sustainability: A significant majority (69%) of employed adults want their companies to invest in sustainability efforts (Deloitte Consumer Center), with 70% of employees saying that they find sustainability programs make employers more attractive (IBM). This can aid in recruitment and retention efforts. By investing in sustainability initiatives, SMEs can attract and retain top talent, boost employee morale, and create a positive work culture.
- Tender Success: Many government agencies and large corporations now require suppliers to meet certain sustainability criteria. By demonstrating a commitment to sustainability, SMEs can increase their chances of winning tenders and securing lucrative contracts.
- Customer Acquisition and Retention: By showcasing their sustainability efforts, SMEs can differentiate themselves in the market, build trust with customers, and create long-lasting relationships that drive business growth and success.
Embracing Sustainability for Growth
The time to act on climate change is now. The stakes couldn’t be higher, and the urgency couldn’t be greater. But amidst the challenges lie opportunities for positive change. By embracing sustainability, SMEs can not only reduce their environmental impact but also unlock a world of financial benefits. At kroov, we’re committed to helping SMEs navigate the transition to a more sustainable future. Our tailored solutions and expert guidance can empower SMEs to thrive in a rapidly changing world while making a meaningful impact on the planet. Together, let’s embrace sustainability and build a brighter, greener future for generations to come.