Business owners ‘slow’ to adopt green policies

12.08.08

More than two thirds of small businesses have yet to implement any carbon reduction initiatives, even though three quarters of businesses believe adopting environmental measures could bring new opportunities, a survey by business advisory firm Deloitte found.

Over a third of businesses say they plan to introduce a carbon cutting policy in the next ‘one or two years’, while just under 40% said they are ‘many years away’ from implementing changes.

Deloitte said while most green initiatives being employed by UK entrepreneurs involve waste reduction, recycling and energy conservation, businesses found water conservation, reducing CO2 emissions for the business as a whole, and imposing green sanctions on their own suppliers more challenging.

Richard Crane, entrepreneurial business partner at Deloitte, said many entrepreneurs still see environmental initiatives as representing a cost to the business rather than an opportunity. “The reality is that there are two broad reasons why entrepreneurs should have green issues firmly on their agenda,” he said.

“Firstly, environmental factors are increasingly influencing the buying decisions of both businesses and consumers. For example, pressure from shareholders on large businesses to be responsible corporate citizens means that they increasingly vet the environmental records of their own suppliers.

“Secondly, the growing pressure on businesses and individuals to reduce their environmental impact inevitably brings opportunities for new products and services to help them meet this goal.

“The innovative nature of entrepreneurs combined with their agility to respond to market opportunities quicker than larger corporates, should place them in an enviable position to capitalise on environmental challenges.”

© Crimson Business Ltd. 2008