Region's businesses want to become greener
Almost three quarters of small and medium-sized businesses in the region want to improve their environmental sustainability, according to Lloyds Bank Commercial Banking’s Business Barometer.
Nearly half said becoming more environmentally sustainable is important to them, while more than a quarter said doing so is very important. Moreover, 68 per cent said they have already taken steps to make their businesses greener in the past 12 months.
A fifth of West Midlands SMEs have made alterations to their premises to make it more energy efficient in the past year. The same proportion has purchased energy efficient equipment or machinery, or have switched energy supplier or installed an onsite renewable energy source.
While the commitment from businesses to make themselves more sustainable is good for the environment, more than a quarter of West Midlands firms admit they are primarily driven by the potential to make long-term cost savings.
As public focus on transitioning to a low carbon economy rises – and given the government target of bringing greenhouse gas emissions to net zero by 2050 – nearly a fifth said they are motivated mainly by pressure from customers.
More than a third of West Midlands SMEs said they plan to use cash reserves to become more sustainable. Meanwhile, 12 per cent said they will rely on government grants.
A tenth of West Midlands SMEs said they had not made their businesses more environmentally sustainable in the past year due to the cost implications.
Amanda Dorel, regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “With environmental sustainability high on the agenda for firms of every size – whether that means they’re doing what they can to reduce energy consumption or cut waste – West Midlands businesses understand there is often a financial benefit to making their operations greener.
“As ever, before making significant investments, businesses should consider all the available funding options to decide which is most appropriate for them. When it comes to going green there are options such as government grants and asset finance solutions that help spread the cost of an investment over its lifetime, and initiatives like our Clean Growth Finance Initiative, which offers discounted lending for green purposes.
“Regardless of motivation, we can be confident the impetus to introduce green measures isn’t going anywhere. Becoming more sustainable is a gradual process the UK business community must navigate together.”
