The government needs to invest more in small businesses if it is to achieve its long-term net zero goals, according to a recent report.
The latest research from the Finance & Leasing Association (FLA) and the Federation of Small Businesses (FSB) says that goals will only be met if small businesses invest in new equipment with a smaller carbon footprint.
It also argues that funding from the finance and leasing sector is needed, alongside conditions where green investment is a viable option for more small businesses.
To create such conditions, the needs a credible Green Roadmap setting out the key deadlines for different sectors and the government support available to firms making greener choices.
Subscribe to Sustainability Beat for free
Sign up here to get the latest sustainability news sent straight to your inbox everyday
FLA director general Stephen Haddrill said: “Achieving net zero will require firms to make fundamental changes to their operations, including production methods, materials, distribution, packaging, and power usage.
“They deserve more clarity, consistency and certainty on what is expected of them by when, and competitively priced finance to make it happen.
“Lenders need the government to share the risks of funding green assets so that finance remains affordable, plentiful and available across the full breadth of the economy,” Hadddrill added.
FSB national chair Martin McTague added: “Recognising their role in combating climate change, the vast majority of small businesses are already taking action to mitigate their impact on the environment, from installing energy-saving lighting to self-sufficient microgeneration.
“The creation of a net zero economy needs small businesses to go further, which requires support from the financial sector and governments across the UK.
“This report importantly identifies what this support should be and where policymakers must do their part to enable 5.5 million small businesses and the self-employed to reach net zero.”
