SME SUSTAINABILITY

HANDBOOK
A practical guide to making your business more sustainable
 INTRODUCTION CONTENTS
Regulations you need to know 02
For small to medium enterprises (SMEs), the need to move towards more sustainable practices is apparent
– but their path is blocked. According to an SME Climate Hub survey, 60% of SMEs polled have plans to
reduce their carbon impact. Yet in a separate study from Rimm’s Barriers to Net Zero report, exactly the Terms to be aware of 03
same percentage admit they lack knowledge on the matter.

These statistics reveal a gap in knowledge and best practices for small businesses which this resource Sustainable communications for SMEs 04
aims to address. The report outlines the standards you need to know, ideas to bolster your green
credentials – from bolstering revenue to improving workplace culture – and real-world examples.
Practical tips on the circular economy for
I hope you find this a useful, informative, and valuable resource as you progress on your sustainability SMEs in 2023 05
journeys.
A quick to-do list for SMEs 06

Summary and Resources 07

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1.REGULATIONS YOU NEED TO KNOW
If you are a UK-based SME, these are the regulations you need to be aware of:

Environmental permitting regulations UK emission trading scheme

1. for activities including waste disposal, water discharge, air emissions, and
noise pollution
7. businesses and organisations emitting greenhouse gases must surrender
allowances to cover their emissions

Waste regulations Companies Act 2006 emission reporting

2. sets out requirements for the management of waste, including collection,
recycling, and disposal
8. voluntary for most businesses but requires certain businesses to report their
greenhouse gas emissions to the government

Packaging and waste regulations SMEs account for 67% of UK

3. mandatory for businesses and organisations which place packaging on the
market in the UK
emissions. As governments strive
to achieve their net zero targets -

Energy performance of buildings a combination of regulating the

4. includes the installation of energy-efficient appliances and lighting and is
mandatory for all commercial and public buildings in England and Wales
damage from businesses and
ensuring clear and transparent
finance into only those
Wildlife and Countryside Act
5. includes birds, animals and plants, and is mandatory for all organisations
carrying out activities that could harm or disturb wildlife
sustainable businesses -
regulations are likely to begin
impacting a wider range of
Water Resources Act companies, including those that
6. mandatory for businesses consuming water from rivers or lakes, or
discharging wastewater into rivers or lakes are smaller.

02 Sustainable Future News/SME Sustainability Handbook

2.TERMS TO BE AWARE OF
NET ZERO What initiatives can you put
in place quicky?
According to the UN Net Zero Coalition, The Paris Agreement, adopted in 2015, According to research from the BCC
net zero is defined as reducing mandated that any global temperature (British Chambers of Commerce):
greenhouse gas (GHG) emissions to as increase must be limited to no more than
‘close as zero as possible’, and then 1.5 °C compared with the pre-industrial
offsetting remaining emissions by re- era. The upshot is that, based on the More than two thirds of SMEs
absorbing them from the atmosphere, for Intergovernmental Panel on Climate (69%) had installed LED
instance by oceans and forests. Change (IPCC), to hit this target, net lighting
zero emissions must be fully brought in
by 2050.

More than a third (34%) are

SBTi B CORP investing in greener vehicles

The SBTi (Science-Based Targets B Corp Certification is a designation that

Initiative) defines and promotes best a business is meeting high standards of
practice in emissions reductions and net- verified performance, accountability, and Almost half (46%) are using
zero targets in line with climate science. transparency on factors from employee recycling and waste
SBTi has a Corporate Net Zero standard benefits and charitable giving to supply management strategies
as the world’s only framework for target- chain practices and input materials. The
setting in line with climate science. A majority of the more than 4000 B Corps
company can reach net zero when it has are SMEs.
achieved its long-term science-based Just under a third (30%) are
target. using solar panels

03 Sustainable Future News/SME Sustainability Handbook

3.SUSTAINABLE COMMUNICATIONS FOR SMEs
If you’re a small business owner, what Larger companies can put big resources
sustainable attributes should you lead your into tracking brand awareness through
company storytelling with? Rin Hamburgh, surveys, attributes, and associations. Yet Case Study: RH&Co. and B Corp accreditation
founder and creative director of brand smaller firms aren’t quite so privileged.
copywriting agency RH&Co, agrees Hamburgh agrees that difficult as it may
honesty and humility are key values which be, small business owners need to get out B Corp certification means that
need to be stressed – but you also need to of what she calls an ‘obsession with companies meet the highest standards of
walk the walk. measuring return on investment’ (ROI). “It social and environmental performance,
can’t be about a bottom-line result every transparency, and accountability but
“You can’t just say you’re sustainable,” says single time,” she says. “Sometimes, it just offers support on the route to get there.
Hamburgh. “You have to have some things has to be the right thing to do.”
that you can genuinely point to; some data, For RH&Co, which is proudly certified, the
some activities you’re doing, whatever it is. “CSR has always been like this – how do small things really do count. One example
They can be small – that’s absolutely fine. you get that balance between actually Hamburgh gives of her company’s B Corp
Do be humble about it, though be realistic.” having that corporate social responsibility journey is through recycling. The
and doing the right thing? Yes it should company had always recycled, but now
You can't just say you're have a marketing effect, but if you go for there is a metric in place to assess the
the marketing effect first, it can start feeling proportion of landfill versus recycled.
sustainable very fake very quickly.”
With recertification every three years, a B
Corp requires continual progress. “For
me, that was a key motivator,” says
Hamburgh.

“We knew in our hearts that we were

doing okay; what we wanted was for
somebody else to assess just how good
that was, and then we can try and
improve, because it’s really hard to
improve if you don’t know what you’re
improving from.”

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4.PRACTICAL TIPS ON THE CIRCULAR ECONOMY FOR SMEs IN 2023 Tips for transitioning
In terms of planetary sustainability, adopting
a circular approach offers many Per the Ellen MacArthur
1. Design for circularity: Focus on designing
products and services that are durable and
advantages, including reducing emissions, Foundation study, 60% of recyclable. This includes using recycled or
safeguarding habitats, and avoiding renewable materials, implementing modular
resource depletion.
businesses are unsure where to designs, and considering the entire life
start when it comes to cycle of the product.
But that doesn’t mean circular economies implementing circular economy
can’t also benefit your business by helping it
grow and develop. Here are some way’s
principles. So, how should your
business start working towards 2. Extend lifespans: Nothing will last forever,
but you can find ways to extend the lifespan
circularity can bring advantages to your becoming more circular? of products through repair and
business. refurbishment, or encourage customers to
return products for maintenance and
upgrades, reducing the need for new
purchases.
1. COST SAVINGS 2. NEW REVENUE STREAMS 3. INCREASED INNOVATION
3. Collaborate with suppliers: Work closely
with suppliers and educate them on the
Transitioning your business to a circular Embracing a circular economy opens The circular economy spurs innovation benefits of incorporating circularity into your
economy can lead to significant cost doors to innovative revenue streams. by challenging businesses to rethink business relationship. Collaborative efforts
savings. By reusing and recycling Businesses can explore opportunities to traditional approaches. Companies are can help secure sustainable sourcing of
materials, companies reduce reliance on refurbish and resell products, provide motivated to design products, processes, materials and enable the design of products
expensive raw materials and lower waste repair services, or adopt product-sharing and services that minimise waste and that are easily recyclable or reusable.
disposal expenses. models instead of traditional ownership. maximise resource efficiency, leading to

A study by the Ellen MacArthur For example, IKEA’s furniture rental

novel and sustainable solutions. 4. Engage with customers: Raise awareness
about the circular economy by providing
Foundation found that the fast-moving service called “IKEA Renting,” allows This is the route taken by companies information on sustainable consumption
consumer goods sector could have net customers to rent furniture for a monthly such as Loop, a global reuse platform practices, educating customers about the
material costs savings of roughly fee. This model has helped IKEA to that aims to eliminate the idea of waste. environmental impact of their choices, and
$700billion (£550bn) each year. reduce its waste and increase its profits. promoting the benefits of circular products
and services.

05 Sustainable Future News/SME Sustainability Handbook

5.A QUICK TO-DO LIST FOR SMEs
Oxford Net Zero, a research initiative based on the University of Oxford’s longstanding
work on climate neutrality, offers a simple five-step guide to help organisations commit to
net zero:

Pledge
Pledge at the head of organisation level to reach net zero GHGs as soon as
possible in line with global efforts

Plan
Publicly disclose a transition plan and include what actions will be taken within
the next 12 months, two to three years, and by 2030

Proceed
Take immediate action through all available pathways toward achieving net
zero consistent with delivering interim targets specified

Publish Where can you get more information?

Report publicly both progress against interim and long-term targets, and
initiatives, at least annually. Report in a standardised, open format Business and commerce groups have dedicated resources in place. The Federation
of Small Businesses (FSB) has an information hub, as does the SME Climate Hub.
The BCC has a Net Zero Hub as well as an interactive Zero Carbon Business tool.
Persuade The BCC survey found almost half (42%) of businesses thinking about net zero will
speak to them, and a further fifth (19%) will consult their banks, lawyers, or
Within 12 months of pledging, align external policy and engagement to the goal accountants.
of halving emissions by 2030 and reaching global net zero by 2050

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 SUMMARY

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