Planet Mark, a sustainability certification for every type of organisation, has joined forces with Amazon to call for the creation of a government-backed Net Zero Resource Hub for small and medium-sized enterprises (SMEs). This would help SMEs to access funding and advice for their sustainability journey.
The hub would be a part of a national initiative to educate businesses, the government, and the SME sector about the critical contribution that smaller companies can play in the economy’s decarbonisation. It would provide clear and searchable instructions on Net Zero, allowing small businesses to act swiftly, influence legislation or policy that might directly or indirectly affect them, and get access to funding to enable their transition to Net Zero.
Many SMEs do not have Net Zero targets in place
The call comes as part of a new report, Recommendations for Supporting Small and Medium-Sized Enterprises (SMEs) on the Road to Net Zero. This follows the government-commissioned Net Zero Review, incorporating input from over 40 SME leaders as well as academics, independent consultants, and industry organisations that participated in a recent roundtable series hosted by Planet Mark and the Amazon Small Business Accelerator in Bristol, Cambridge, and Manchester.
These events aim to aid SMEs in understanding the potential and problems surrounding sustainable packaging, digitisation, technology, and manufacturing. Approximately 4.5 million UK SMEs do not currently have Net Zero targets in place.
The participating businesses described a number of obstacles they must overcome in order to reach Net Zero, including a lack of funding and inadequate education on the significance of transitioning. To enable these companies to first commit to Net Zero and start making meaningful progress on decarbonization, it is crucial to decode carbon language and offer easy pathways to action.
Key findings from the report
A voice in Net Zero policy
The voices of SME representatives must be heard in the formulation of Net Zero policies that either directly or indirectly affect them and the supply chains they are a part of. Giving smaller businesses a stronger voice would give them more control over how they adhere to the governance or measurement criteria connected to Net Zero.
The research also urges that these rules be well-coordinated at the national and regional levels in order to prevent confusion and lessen the complexity of compliance.
Roadmap for progress
There needs to be a clear deadline for the creation of SME emissions measurement requirements.
Businesses would gain from having a clear plan for when they would need to disclose a minimal threshold of emissions scopes. This would help small businesses to be ready and would also help larger organisations design their own Net Zero goals and targets. It is also necessary to remove obstacles to measurement, such as requiring business landlords to give tenants access to their energy, water, and trash data so they may compute emissions and develop reduction strategies.
Financial incentives
Planet Mark and Amazon urge for Net Zero laws to be combined with financial incentives for SMEs. This may be financed by green tax incentives and would aid firms in forecasting, accelerating the implementation of low-carbon solutions, and accurately assessing the upfront financial and resource requirements.
Innovative low-carbon goods and services should have easier access to funding. For instance, to assist these concepts scale up commercially if a sponsored pilot project is successful, bridge money from both private and public sources is needed.
Partnering for impact
Large organisations have an essential role to play in helping SMEs in their supply chains on their own decarbonization journeys. They may better support smaller businesses by sharing their knowledge, providing financial support, and offering direction.
SMEs need the right tools to prepare for Net Zero
Steve Malkin, CEO of Planet Mark, says:
“There are nearly six million SMEs in the UK, making up 99 percent of all businesses. To reach Net Zero by 2050 and limit global warming to 1.5°C, it is critical that small businesses are committed to climate action and taking bold steps to reduce their emissions.
“We are optimistic the UK government will grasp this opportunity following the recent publication of its long-awaited Net Zero Review, which acknowledged that the country’s small businesses need specific advice and guidance so they can better understand and contribute to the climate transition. We have long been calling for the UK government to ensure that SMEs, which are the backbone of our economy, are given the tools to prepare for net zero today, so they aren’t left behind in the years ahead.
“This is why we teamed up with Amazon to run these events, which have allowed us and the Amazon Small Business Accelerator to work closely with smaller firms to demystify Net Zero and to come up with specific asks to help SMEs on their Net Zero journey. Planet Mark has supported many SMEs to embrace sustainability and cut carbon. By working with Amazon, we look forward to helping thousands more small businesses thrive while also making a difference in our fight against climate change.”
Supporting the transition
John Boumphrey, UK country manager, Amazon, adds:
“We remain laser-focused on reaching net zero carbon by 2040 across our business, but we also have an opportunity and responsibility to lead by example, and encourage partners, such as the small business community – many of who sell on Amazon, or use our products and services – to address the climate crisis and solve the challenges of decarbonising our economy.
With Planet Mark we want to help small and medium-sized enterprises overcome and understand some of the barriers they face in their net zero journeys, including better access to information and a clearer roadmap for progress.”
Jane Hunt MP, chair of the All Party Group for Small Businesses, says:
“I welcome the report published today by Planet Mark and the Amazon Small Business Accelerator, highlighting the urgent need for SMEs – 99 percent of our businesses in the UK – to be better supported in their transition to net zero. Government and big business have pivotal roles to play in ensuring that the regulatory environment, tools and resources are enabling businesses of all sizes to decarbonise across their operations.”
Planet Mark at greenloop
Andrew Griffiths from Planet Mark will speak at greenloop 2023. He will explore the latest thinking on Net Zero and where regulation is heading, as well as how and why businesses can prepare and comply.
Join us to find out everything you need to know about Net Zero and some top tips for decarbonisation at Andrew’s session at 2 pm on 26 April.
