SMEs lose green focus

The number of SMEs doing “little or nothing” to reduce emissions since 2007 has increased by 23%, with less than 10% dedicating any significant investment to going green,  according to a new study. 

Retail and leisure sectors have been among the hardest hit by the recession leading to decreased focus on green issues, the report by GE Capital found. However, firms in manufacturing, IT, media and construction have all continued to concentrate on reducing their carbon emissions.

John Jenkins, chief executive of GE Capital said: “There is no doubt that the recession has had a major impact on SME’s attitudes and strategies towards green investments.

“Many firms may have chosen to defer or halt any further outlay into energy and CO2 efficient equipment, preferring to consolidate their financial positions instead.”

The study of SMEs found that 42% believed better tax breaks was the best measure to support reduced emissions, while 34% thought help with funding would incentivise them to do more for the environment.  In contrast, only 13% saw greater regulation as an effective measure.

However, nearly a fifth of SMEs are considering or have already invested in solar panels or wind turbines in order to reduce their emissions.

Jenkins added: “As the economy starts to recover it is vital that this plateau in attitudes is reversed, particularly if SMEs are to make their full contribution to reducing emissions while still supporting economic growth.”

© Crimson Business Ltd. 2010