SME sustainability drive hit by Covid
DRIVES TO make small and medium-sized businesses more sustainable have been derailed with larger corporates pulling ahead, new data shows.
NatWest’s first Sustainable Business Tracker, a new quarterly report designed to monitor business performance and sustainability actions at UK enterprises, has found that SME business performance trailed behind large companies due to Covid-19 measures, rapid cost inflation and supply disruption.
SME sustainability plans have been negatively impacted by the need to make further progress on recovery from the pandemic.
Survey data highlighted that UK SMEs have reduced their focus on sustainability action in comparison to the levels seen prior to the onset of Covid 19. This is in despite of green policies boosting recovery and growth.
By contrast, large companies reported a considerable increase in their prioritisation of sustainability action in 2022, which extended the gap between plans among smaller businesses.
On average, around 41 per cent of SMEs stated that sustainability action was a high priority in the next 12 months, down from 44 per cent in February 2020. This compared with 60 per cent of large companies, up from 57 per cent prior to the pandemic.
Andrew Harrison, head of business banking for NatWest Group, said: “It’s been a challenging 18 months for UK SMEs, and not surprising therefore that the climate agenda has slipped back on the agenda for some small businesses.
“But it’s important that SMEs know that sustainability measures can boost their recovery, and even fuel their growth.”