Small businesses are becoming less proactive about reducing their environmental impact as the recession forces them to prioritise other areas, it has been claimed.
A survey of 7,000 small and medium-sized businesses by environmental guidance website NetRegs.gov.uk revealed a 75% drop in the number of firms with a formal environmental management system (EMS) in place.
Although small firms are generally more energy efficient than they were in 2007, when the last survey was conducted, the number with an EMS has fallen from 15% to 4%. Just 23% now have an environmental policy, down from 39%.
The biennial survey also found that fewer firms have a designated person responsible for reducing their company’s carbon footprint, and just 20% plan to invest in green initiatives over the coming year.
Debbie Chatting, strategy manager at NetRegs.gov.uk, said: “It’s good to see improvement in SMEs’ green business activities, but efforts are clearly starting to fall back in many areas.
“SMEs make up 99% of British business so their cumulative impact is huge; they simply cannot be apathetic or maintain indifference.”
The survey found that awareness of environmental laws has also slipped. When quizzed about regulations that they ought to be complying with, 38% had not heard of a single piece of relevant legislation.
A disconnect between the perceived and actual environmental impact of small companies was also revealed. While just 7% of respondents said they thought their business undertook activities that harmed the environment, in reality it was found that six times this amount fell into this category.
Chatting said: “Our survey has unearthed a level of denial among some small businesses who still don’t acknowledge the harm that they can do to the environment nor recognise the business opportunity it presents to them.
“Many companies in the supply chain now include specific environmental questions in their tender forms, so by building measures into your business plan, training your staff and taking an environmentally responsible stance throughout your business, you will reap the rewards of winning more work. And you’ll comply with the law.”
The Environment Agency said half of all serious industrial pollution incidents are caused by small and medium-sized businesses, for which the average fine now exceeds £10,000.
© Crimson Business Ltd. 2009