Sustainability Takes Center Stage for Small Businesses in 2025
A recent study by Novuna Business Finance has uncovered a significant shift in priorities among small businesses, with a staggering 88% now placing greater emphasis on sustainability compared to the start of last year. Despite this commitment, financial constraints remain a major obstacle to achieving these eco-friendly goals.
Energy Efficiency Tops the Agenda
The survey of 255 small business owners, conducted between Christmas and New Year 2024, revealed that energy consumption is a top concern, with many businesses focusing on reviewing their water usage, heating systems, and exploring opportunities to increase their reliance on renewable energy sources. Other key environmental priorities include adopting greener transportation options (29%) and investing in updated equipment and sustainable infrastructure (18%).
A Holistic Approach to Sustainability
Beyond environmental concerns, small businesses are taking a comprehensive approach to sustainability. Nationally, 27% reported that enhancing working conditions and employee contracts to ensure fair treatment for all staff has become a greater priority compared to a year ago. Other key sustainability objectives include creating local job opportunities (32%), investing in local suppliers and contractors (16%), and fostering a positive social impact within their immediate communities (27%).
Barriers to Sustainability
While small businesses are committed to sustainability, they face significant challenges in achieving their goals. High energy costs (55%), rising fuel prices (47%), and the potential for increased inflation and interest rates (40%) are major concerns. Additionally, the economic effects of government policies, such as changes to National Insurance (48%), and the potential ripple effect of the Trump presidency (77%) are also weighing heavily on small businesses.
Regional Variations
Interestingly, small businesses in the East Midlands, West Midlands, and the North have demonstrated a strong commitment to sustainability, while those in Wales have placed less emphasis on many sustainability initiatives, consistently falling below national averages.
A Positive Commitment to Sustainability
According to Jo Morris, head of insight at Novuna Business Finance, “It’s heartening to see so many small businesses starting 2025 with a strong commitment to sustainable projects. Small businesses are true leaders in sustainability, actively engaging with it in all its forms.” Novuna Business Finance will be sharing more inspiring small business stories on sustainability through their podcast this year.
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