Sustainability
Making our businesses more sustainable
As a small business owner, acting on sustainability can feel like it’s a nice to do, or something to add to the list at some distant future time. Concentrating on running the day-to-day business, often with limited resources, understandably takes priority. Yet awareness of climate change is growing amongst consumers. AHDB have reported that it is now one of consumers chief concerns with 66% of consumers claiming to consider the environmental impact of the food they eat. And though the government’s pledge to reach net zero by 2050 may seem far away, the steps to achieving it creep ever closer – such as bans on diesel vehicles and gas boilers in coming years. As small businesses make up 99.9% of the UK’s businesses this goal cannot be achieved without their support.
In this feature Craft Butcher takes a farm to fork look at sustainability for butchers and small businesses in general- from the animals butchers source to the vehicles they deliver products in. But to begin with we take a snapshot of some of the lynchpins for sustainability in business: energy, waste, transport, and taxation, and see how small firms are faring in the drive towards net zero.
Energy
Across the UK 67% of small businesses have made some improvements to their business to make it more environmentally friendly. The most popular change (37%) has been the investment in energy efficient appliances. Other ways small firms are finding to curb their energy usage and its impact on the environment are:
• Switching to a renewable energy tariff (26%)
• Installing a Smart meter (14%) • Improving insulation (19%) • Installing solar panels (14%)
Reducing energy costs not only helps tackle climate change but also helps combat the ever-increasing costs of doing business.
Waste and recycling
According to the Ellen MacArthur Foundation moving to renewable energy can only address 55% of global greenhouse gas emissions. Waste reduction and recycling will also be important if we are to meet the net zero target.
Sixty-four percent of small businesses are taking steps to increase recycling in
their business and 50% say they have taken steps beyond recycling to reduce unnecessary waste in their business.
Two factors limiting further reductions in waste are said to be the cost of sustainable materials, including packaging and the cost of business recycling.
Transport and Zero Emission Vehicles (ZEV)
Transport is the largest single contributor to the UK’s greenhouse gas emissions – responsible for around 27% in 2019. This comes mainly from petrol or diesel road transport. In November 2020 the UK government announced that all new diesel and petrol car sales would be phased out by 2030, less than 8 years away.
Although electric vehicles are becoming more common domestically only 9% of small firms say they have switched or intend to switch their vehicles to ZEVs (zero emission vehicles) by 2030. Why? Cost is the biggest factor with 46% saying ZEVs are too expensive. Lack of charging infrastructure and limited product options are also cited as barriers to investment.
But things are changing. Governments are keen to address the charging issue. The Welsh government is leading the way having published its electric vehicle charging strategy in March 2021. This government’s Transport Decarbonisation Plan also intends to accelerate the rollout of electric charging points and aims to ensure drivers are never more than 25 miles from a rapid ChargePoint along all England’s motorways and major A roads.
Motoring organisations like the AA are keen to support the roll-out of ZEVs. Their press release ahead of COP26 stressed the deals the AA offered on electric vehicles under the AA Smart Lease scheme, the specialist motor insurance they offer which includes charging cables. They say they are also working with infrastructure providers to ensure all charging points are working properly. In addition, AA President and electric vehicle driver, Edmund King, said,
“All AA Patrols are trained to deal with EVs and have our latest technology such as the freewheeling hub, which attaches to the outside of the rear wheels of EVs that can’t be flat towed. We’re now seeing less than 4% of EV breakdowns are because of lack of charge, but if they do run out of charge, they can now be towed to a rapid charging point and if it’s an InstaVolt charging point, we even give a £5 charge on us.”
Taxation and Finance
Going green should not make small businesses worse off. It’s clear that policies and financial incentives are needed to encourage businesses to invest in environment friendly solutions. A reduction in business rates would encourage this, according to 28% of respondents. Clarity on the taxation system for electric vehicles in future is needed – currently ZEVs do not pay fuel duty or Vehicle Excise Duty. The move to ZEVs will potentially cost the treasury £35b in lost revenue. Suggestions made include a mileage related road charging system. Incentives towards investment in electric could include offering 5000 free business miles or charging less for usage on minor roads.
Sources: 1. Federation of Small Businesses – Empowering Small Businesses on the Journey to Net Zero, 2 Nov 2021 2. AA Press Release, Wednesday 20 October 2021: Long and winding electric road to COP26
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