By Damian Hanson, Co-Founder & Director of CircleLoop
SMEs are a vital and significant part of the economy. In fact, SMEs represent 99% of all EU businesses, employ close to 100 million people, and represent more than half of Europe’s GDP.
Despite SMEs being deemed as the backbone of Europe’s economy, two-thirds of small business owners are worried they don’t have the right skills and knowledge to tackle the climate crisis. Knowing where to start can be confusing and time-consuming but putting this at the top of your business agenda will have a lasting impact.
The current state of SME sustainability
Research by Aldermore found that UK SMEs invested an average of £61,250 on sustainability initiatives in the last year. The research also found that the average SME business plans to spend a further £78,392 on sustainability in the coming year– an increase of 27%. This is due to mounting pressure for businesses to cut their carbon emissions in line with the Government’s 2050 Net Zero targets.
It is important that SMEs monitor their sustainable goals to track whether they are progressing towards becoming a greener company. By informing stakeholders and customers about company efforts, you can ensure that your company is held accountable for its environmental obligations and increase customer confidence. Innovative solutions are emerging all the time that are greener and more energy efficient that can help SMEs find eco-friendly solutions to help reduce their carbon footprint and optimise energy usage.
Using technology to become a Sustainable Business
Technology can play a significant role in helping SMEs become more sustainable. Here are some ways that it can help from my experience:
1. Reduce commuting and emissions associated with travelling by allowing remote work.
Remote work is now possible thanks to flexible technology that connects us together wherever we are in the world. This minimises the need for people to commute to work. Reducing the need for office space, not only lowers emissions associated with transportation but may also result in cost savings for SMEs to incorporate into other areas of business.
2. Reduce paper waste by going online and using cloud-based tools
Cloud-based software can help businesses reduce paper usage by providing a digital alternative to traditional paperwork. Using online tools for document management, storage and collaboration, SMEs can significantly reduce their paper consumption and associated waste while promoting a clutter-free environment.
3. Use highly scalable technologies to avoid over-provisioning and cut down on waste.
Due to the enormous scalability of the technology, SMEs can monitor and modify their stock usage far more efficiently as their needs change. This helps avoid over-provisioning, cutting down on waste and can even help you streamline your tech stack and reduce energy use from extra hardware or software.
4. Traditional software and hardware are less energy-efficient than cloud-based tools.
Cloud-based tools and services are often more energy-efficient than traditional software and hardware. Remote servers can be optimised for energy efficiency, resulting in lower energy consumption and carbon emissions. You can also recycle any old hardware, such as old phone systems, that may no longer be in use – particularly if you’ve upgraded to the cloud(https://www.circleloop.com/business-phone-systems/small-businesses).
The above are just a few, small ways SMEs can use modern technology to support their sustainability efforts, lessening their impact on the environment while increasing their bottom line. Often making smaller changes that last long term are more effective than grand, expensive initiatives.
Looking to the future
Technology provides SMEs with tools to improve their sustainability lens and differentiate themselves in the current crowded market. If the UK is to achieve Net Zero emissions by 2050, the progress SMEs continue to make is essential. According to a report by Lloyds bank, sustainability issues are of the utmost importance to 93% of SMEs, and 83% say they have grown in significance over the past year.
As consumers already expect businesses to make environmental promises, SMEs need to put sustainability at the forefront of their goals to keep their customers and stakeholders happy. This process can easily be fast-tracked with technology in mind and will help leave a lasting impression which will be the differentiator between businesses that grow and those that don’t
