Expert View
SMES NEED TO BE CENTRAL TO THE CLIMATE CHANGE CONVERSATION
by Susan Haslem Relationship director at NatWest for Lancashire
The UK has set a target to reach net-zero emissions by 2050 and to reduce emissions by around 40 per cent by 2030.
If we’re to meet these ambitions, few businesses will be untouched by the green economic transformation ahead and all sectors will need to play their part. While attention has often focused on the big corporates, SMEs have a central role play in the UK’s journey to net zero.
According to NatWest’s A Springboard to Sustainability report, SMEs contribute around 30 per cent of the UK’s total carbon emissions but, given the right support, 50 per cent of the UK’s carbon reduction targets could be delivered by the sector.
It is time for SMEs to move to the centre of the UK’s green ambition.
What is imperative is that this should be viewed an opportunity rather than a burden. Encouragingly, the report found that taking affirmative
supermarket chain, is rolling out its first 18 tonne 100 per cent electric truck, with a refrigeration body created by Rossendale based Solomon Commercials.
Solomon sales director Anthony Clegg says: “The government has already announced plans for all new HGVs to have zero emissions from 2040 and will ban sales of fossil-powered trucks weighing 26 tonnes or less from 2035.
“So, it’s not a case of if there’ll be a transition to operating electric vehicle fleets; it’s more of a case of how soon.
“We’ll also start to see more fleets using hydrogen, particularly as the technology and the infrastructure develops as the government wants to eliminate emissions.”
Burnley based CoolKit is the UK’s number one builder and convertor of temperature-controlled vehicles. Founder and chief executive Rupert Gatty says: “There are many good reasons for businesses to consider going electric, not least the sustainability case.
“Right now, the Plug In Van Grant (PIVG) is available to support purchases on new electric light commercial vehicles to the value of 35 per
action could also unlock a £160bn revenue opportunity for SMEs, with sustainability, recovery and growth all going hand-in-hand.
With the right support, many SMEs will see the bottom-line benefit from reducing their carbon footprint but it can be hard to know where to start. With this in mind, NatWest has recently announced the launch of our new ‘Carbon Planner’.
The planner is a free digital platform designed to help businesses reduce their carbon footprint by understanding and managing fuel and operational costs and highlighting financing options that businesses can explore. It’s available to all UK businesses and isn’t limited to just NatWest customers.
The new NatWest Carbon Planner will be online in late summer 2022 and businesses can register their interest at
www.natwest.com/ business/green-banking/
carbon-planner.html
cent of the purchase price, up to a maximum of £5,000 for larger vans, or £2,500 for smaller vans up to 2,500kg gross vehicle weight.
“Also, if comparing the cost of electricity and diesel prices and their consumption when powering vehicles relative to one another, the cost per mile for electrically powered vehicles is roughly half the cost of the diesel-powered equivalent – a truly worthwhile saving.
“But alongside the positives — which also include less noise, lower emissions and bills for fuel, maintenance, taxation and congestion charges — there are challenges too. There’s a price to be paid that goes beyond the additional costs for the vehicles themselves.”
Rupert adds: “The obvious ones are the costs of the charging points and for the professionals needed to carry out the install – although these costs are also presently supported by grants.
“Plus, you may need to upgrade the supply coming to your premises from the grid – only a properly qualified electrical survey could determine whether that would be necessary.
“Much thought is needed about how a van driver taking a van home at night is to
recharge, or how to recharge at service stations, as presently there are no designated van recharging bays.
“Another factor to keep in mind is the vehicles themselves. It’s not just a question of list price. Electric vans tend to be heavier, meaning that the payload – the amount they can carry - may be compromised, whilst their range is typically more limited than their fossil fuel equivalent.
“That means fleet managers will face planning and productivity headaches, with a potential outcome being that more vehicles will be required to carry out the current workload, which is not going to help ease congestion. In turn, that will generate greater demand for clever logistics optimisation software.”
There is another current challenge for businesses looking to make the switch. Steve Openshaw explains: “There is a wider problem in the industry with EV supply, we just cannot currently get enough to meet demand. If we could fulfil our order book, we would be operating at around 80- 90 per cent full electric on our car fleet.”
LANCASHIREBUSINESSVIEW.CO.UK
27
GREEN ECONOMY
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