And yet, according to research carried out by the Natwest Group[2], 9 out of 10 SMEs don't know their business carbon emissions. By measuring their carbon footprint, setting science-based carbon reduction targets, and implementing decarbonisation initiatives, the collective action from SMEs could create a huge impact and get us that much closer to our 2050 net zero goal.

In fact, approximately half of the UK's carbon reduction ambition can be delivered by the UK SME sector[3].

There has never been a better time for SMEs to act. The Natwest Group's research[4] indicates that there is a £160+ billion revenue opportunity for SMEs as a result of the drive to tackle climate change and 130,000 new jobs could be created in the UK SME sector alone if the opportunities to support the net zero transition are harnessed.

Engaging in the net zero transition provides many benefits to SMEs. Net zero initiatives such as switching to renewable energy, optimising energy efficiency and engaging with stakeholders and suppliers don't just positively impact the planet, but also your brand. Taking action can increase competitive advantage, enhance customer loyalty, increase employee retention and talent acquisition, and attract quality investments.

Following the UK Government's commitment to reach net zero by 2050[5], climate-related legislation has already started to come into place and will continue to do so. By acting now, SMEs can ensure that they are prepared for these changes and risks of non-compliance. By calculating their emissions, SMEs can also ensure that they remain eligible to work with large corporates and public bodies, as over 75% of FTSE 100 companies require SME suppliers to report their emissions as part of their own decarbonisation processes[6].

Optimised can assist SMEs with every step of their decarbonisation journey, including strategy and planning, target setting, data management, reporting and the implementation of decarbonisation initiatives. For more information, get in touch with our Optimised Net Zero team.