Tips for small businesses looking to act on net zero
Earth Day 2025 reminds us that the need to address climate change is more pressing than ever.
For small businesses, navigating the complex landscape of sustainability can seem daunting but the collective actions of the UK's 5.5 million small businesses are incredibly valuable.
Research shows that small businesses account for around half1 of the UK’s greenhouse gas emission from business, which shows how big a role small businesses have to play in helping the UK meet its net zero targets.
Why does it matter?
Our collective impact on the planet to ensure we can create a sustainable future for generations to come is key.
The benefit to businesses that can embed sustainability at their core is great, from improvements to the bottom line, due to reduced energy costs, through an enhanced reputation amongst climate-conscious customers, investors and the very best talent. Recent research from Indeed2 highlights a shifting sentiment as workers strive to take on roles in firms that are contributing positively to the world.
Where to start?
If you run a small business, there are several ways that you can cut your carbon emissions, and it is likely you would have started to implement those already:
- Reducing energy consumption and ensuring your energy supply is from renewable sources.
- Cutting down on waste and managing it more efficiently when it is created.
- Switching to natural and recyclable materials.
- Travelling on more sustainable transport options.
- Looking at supply chains.
A report published in late 2022 showed that just 4%3 of small businesses have taken a formal approach to measuring their carbon emissions. This is a crucial step towards net zero as it equips businesses with the information needed to benchmark carbon emissions, and track progress in the coming months and years.
To calculate this small businesses need access to utility bills and fuel expenses for the last 12 months and the below information:
- Fuel consumption: Fuel consumed by the organisation in its sites and owned vehicles. This can be natural gas, diesel or LPG. You may find this information in bills, fuel card data or meters.
- Energy consumption: Electricity used in your sites through meter readings, utility bills, or automatic meter readings.
- Top ups made to air conditioning units: Many refrigeration, fire protection and air conditioning equipment contain a type of F gas (Fluorinated greenhouse gas), which has a large carbon footprint. Information on this can be found on the service sheets provided by air conditioning or refrigeration contractors.
This information can then be inputted into a tool, such as the Carbon Trust’s Carbon Footprint Calculator, or SME Climate Hub’s Calculator and used to make a commitment and set a target.
To facilitate this push to net zero the UK Government has committed almost £5 billion to help businesses reach net zero and has launched its Find a Grant service to help small businesses find the funding that is right for their needs. Many lenders will also offer discounted lending to businesses shifting towards more sustainable practices. This financial support can be used across a range of initiatives including electrifying car fleets, installing solar panels, or low carbon heating and cooling systems and much more.
While the transition to net zero may bring with it some challenges for small businesses, there are several resources and support available to help on the journey. Governments, industry associations, and non-profit organisations offer a wide range of programmes, grants, and training to assist businesses in becoming more sustainable.
1 https://www.british-business-bank.co.uk/about/research-and-publications/small-businesses-and-transition-net-zero/infographic
2 https://workplaceinsight.net/most-people-want-to-work-in-jobs-that-have-a-positive-impact-on-the-world
3 https://smallbusinessbritain.uk/downloads/Small-Business-Britain-Sustainability-Basics-Insight-And-Implications.pdf?v=2