In the 21st century, climate change has become a major global challenge, and governments around the world have set legally binding net zero emissions targets for 2050, making reducing carbon emissions and greenhouse gas (GHG) emissions a new political hotspot. Small businesses play a crucial role in this global journey towards net zero emissions.
Small and medium-sized enterprises, as major emitters, account for half of their total emissions. Although over half (57%) of small businesses are aware of the government's net zero emissions target for 2050, unfortunately, as many as 76% of businesses have not yet developed a decarbonization strategy. They face multiple obstacles such as cost pressure, lack of technology, inadequate infrastructure and vehicles, and difficulties in accessing information, leading to slow action in addressing climate change.
So, how can small businesses achieve the feat of net zero emissions?
Faced with numerous challenges, small businesses can reduce carbon emissions through a series of sustainable practices and move towards the goal of net zero emissions. This includes: using sustainable materials to produce products, optimizing office and operational methods (such as effective insulation in the workplace, encouraging employees to use public transportation), and improving distribution and transportation processes (such as using recyclable materials for packaging, using electric vehicles for delivery).
Even smaller enterprises can demonstrate extraordinary influence in the battle for emissions reduction. Research shows that nearly half (47%) of small businesses consider reducing carbon emissions to be a high or extremely important priority.
The net zero emission strategy not only brings good news to the global environment, but also creates many benefits for enterprises, such as enhancing corporate image, reducing costs, attracting investment, enhancing safety and business resilience, and building competitive advantages.
Shaping a positive corporate image
In today's world where customers increasingly value ethical choices, carbon neutrality actions can significantly enhance a company's social image. Green enterprises can attract more new customers and establish a positive corporate culture through sustainable measures such as participating in carbon offset projects (such as afforestation), purchasing local materials, shortening food miles, and properly disposing of waste.
Cut costs
Switching to renewable energy sources (such as installing solar panels and using green electricity prices) can reduce a company's utility expenses. By checking and optimizing energy usage, companies can further reduce energy consumption and lower costs. For example, a Scottish manufacturer saved £ 170000 annually and reduced annual carbon emissions by 2000 tons by improving its ventilation system. In addition, for enterprises that frequently enter low emission areas in big cities, using electric vehicles can significantly reduce transportation costs.
Attracting capital injection
For investors and shareholders, net zero emission enterprises have great appeal. They are more inclined to invest in companies with long-term sustainable development strategies, especially small businesses that rely less on fossil fuels and have lower risks of operational disruptions.
Enhance security and business resilience
Achieving net zero emissions targets can enhance a company's ability to adapt to market or state interference. For example, using electric vehicles can help businesses avoid the impact of rising fuel costs and fuel supply chain disruptions; Using alternative energy sources such as solar or wind power for supply can help businesses resist the risk of unexpected increases in energy costs. These measures collectively enhance the security and business resilience of enterprises.
Building a competitive advantage
A survey by the British Chamber of Commerce showed that only 11% of respondents measured the carbon footprint of their businesses. This indicates that understanding one's carbon footprint and taking measures to reduce carbon emissions can bring significant competitive advantages to businesses. With the increasing attention of customers to the sustainable development qualifications of enterprises, from product packaging to the carbon footprint of agricultural products, they have become the focus of their attention. Establishing transparent relationships with customers, showcasing the reliability and sustainability of the enterprise, can help enhance customer loyalty and make them more willing to become repeat customers of the company.
In addition, research has found that customers are increasingly willing to pay a premium for environmentally friendly products, especially among younger customer groups. This indicates that companies adopting a net zero emission strategy can not only meet the market's demand for environmentally friendly products, but also attract more customers willing to pay additional fees by providing high-quality, sustainable products and services.