UK small businesses have been given a roadmap of recommendations to help them adopt sustainable green growth opportunities aimed at boosting profits, innovation and long-term growth.
The Willow Review, launched last year, examined how sustainability can provide financial benefits for SMEs.
Jointly chaired by Small Business Minister Gareth Thomas, Barclays’ global head of sustainability engagement Nick Stace and Small Business Britain founder Michelle Ovens, the review is supported by a steering board that includes representatives from the Department for Energy Security and Net Zero (DESNZ), the British Chambers of Commerce, the Federation of Small Businesses, BT, the Business Climate Hub, Startup Discovery School and Planet Mark, plus academics from Glasgow University.
Now ten initial recommendations have been published outlining how the Government and financial services sector can enable a ‘mass shift’ in small business sustainability adoption over the next five years.
The first tranche of recommendations focus on simplifying sustainability plans, improving access to finance, and creating networks to share innovative best practice.
The Willow Review’s co-chair Michelle Ovens CBE said: “Sustainability is great for the small business bottom line and brings tremendous potential to transform growth for small firms and the wider UK economy, as well as being vital for the planet too.
“These new recommendations by the Willow Review are a critical step forward in supporting small businesses on this journey to unlock the opportunity of green growth.”
SMEs account for in the region of 50% of business-driven emissions in the UK but have been slow to implement sustainability strategies with many business owners pointing to concerns over upfront costs and a perceived lack of financial return as key barriers to implementation.
The review suggests that the Government nominate council-level sustainability champions to support SMEs and connect them with local funding.
And it says sustainability should be promoted as a means to grow businesses making them more competitive and profitable rather than focusing simply on compliance aspects.
Greater engagement with existing resources such as the UK Business Climate Hub is encouraged, in addition to efforts aimed at supporting SMEs in transitioning to sustainable energy through closer collaboration with landlords.
The review also recommends simplifying sustainability grant applications and considering the introduction of ‘Green-Up Loans’ as an extension of Start-Up Loans to make access to finance more user friendly citing uncertainty over regulations and financial incentives as significant barriers to action in the past.
Financial institutions are urged to provide more education on green finance, helping small businesses understand the commercial advantages of sustainable practices for their growth.
In terms of ideas for SMEs, the review proposes the development of a simple five-point sustainability plan that encourages firms to switch to sustainable materials, reduce travel and optimise logistics, minimise waste through circular economy initiatives, adopt renewable energy sources, and partner with sustainable suppliers and clients.
It also highlights the importance of SMEs joining sustainability networks to share good practice through mentoring programmes and peer support.
As research continues, the Willow Review will establish dedicated task forces to develop more detailed recommendations ahead of its final report in June 2025.
Syntegra MD Alan Wing-King said: “This is an important review as small businesses need to know that sustainable business strategies can boost profits as well as just complying with rules and regulations.
“It is vital that existing good practice is shared widely and further innovation is encouraged and made known.”
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