Ten Things SMEs Can Do to Combat Climate Change - and Reduce Their Risk Profile
For small and medium-sized enterprises (SMEs), climate change isn’t just an environmental issue, it’s a business one. Supply chain disruption, rising energy costs, regulatory pressure, and shifting customer expectations all pose real risks.
The good news? Practical climate action can also lower your risk profile, improve efficiency, and enhance reputation.
Here are ten high-impact steps SMEs can take:
1. Measure Your Carbon Footprint. Start with data. Quantify your emissions to identify the biggest sources and track progress. Start with Scopes 1 and 2 and incorporate Scope 3 when you have confidence in your data collection process. Tools like SME Climate Hub offer free guidance.
2. Set Science-Based Targets. Commit to realistic, evidence-based goals for emission reduction. Public targets signal credibility and accountability.
3. Boost Energy Efficiency. Switch to LED lighting, improve insulation, upgrade old equipment, and monitor usage. Every kilowatt-hour saved improves both your margins and your carbon balance.
4. Source Renewable Energy. Choose a green energy tariff or invest in onsite solar. Renewable power can cut long-term costs and protect you from energy price volatility.
5. Green Your Supply Chain. Work with suppliers who share your sustainability goals. Ask about their environmental policies and include sustainability criteria in procurement.
6. Reduce Waste and Improve Circularity. Minimise materials use, repair and reuse where possible, and recycle systematically. Waste reduction saves money and demonstrates responsible stewardship.
7. Transition to Low-Carbon Transport. Encourage remote and hybrid working, optimise logistics routes, and explore EVs or hybrid fleets. Transport is a quick win for emissions reduction.
8. Engage Your People. Involve employees in climate initiatives, from sustainability challenges to volunteer days. Empowered teams drive lasting change. Incorporate climate goals into your appraisal process.
9. Adapt for Climate Resilience. Assess your vulnerability to extreme weather, supply chain shocks, and resource scarcity. Build contingency plans and diversify suppliers.
10. Report and Communicate Progress. Transparency builds trust. Share your goals, actions, and results with customers, investors, and your community. Remember - even small wins make a difference.
Why it matters:
Sustainability isn’t just about doing good. It’s about futureproofing your business. SMEs that act now are better positioned to attract investors, win contracts, and weather economic and environmental shocks.
For more hints and tips, search our site - www.peakgovernance.co.uk
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