SMEs face barriers to more sustainability progress

SMEs have improved their sustainability performance by 18.5% since 2021, proving that small businesses are steadily making significant progress according to a new report.

However, the study by consultancy FuturePlus found that smaller firms move faster on actions within their immediate control, while progress takes longer in areas that require specialist expertise, hard data, sustained investment, or operational change.

It said despite the UK’s 5.7 million SMEs employing three-fifths of the private-sector workforce and generating half of its turnover, they are underserved when it comes to sustainability support.

Alex Smith, CEO at FuturePlus, said the report showed that SMEs have “no shortage of ambition” and that slower progress than their larger peers should not be mistaken for failure or a lack of commitment.

“With better information, meaningful benchmarks, practical support, and the right incentives, businesses can turn ambition into measurable progress. The opportunity now is to build the infrastructure around them that allows that progress to go further and faster,” she said.