Can small businesses do more to enhance their green credentials?

While environmental considerations may not be at the forefront of the minds of business owners, making a company greener could actually have long term benefits.

 

Research from Lloyds Bank Commercial Banking suggests that failing to be green could actually damage a company’s reputation, brand and competitiveness.

 

One in five firms accept they are not doing enough to be environmentally responsible while 71% of SMEs said they did not know about the positive impacts associated with good green practices.

 

A quarter of companies did say it is a priority for the coming year but firms are unlikely to implement green strategies if they do not fully understand them.

 

Why consider green policies?

 

A major positive factor that can result from implementing environmentally responsible practices is that of the potential cost savings on offer.

 

By setting targets and by using resources more efficiently, operating costs can be driven down and this can have a tremendous influence on a company’s cashflow.

 

Reducing financial pressures can provide stability and longevity for a company, which is why firms are actively encouraged to consider their options.

 

Those with concerns over their financial situation, for whatever reason, are advised to seek expert advice as business restructuring or an alternative solution may be available.

 

Understanding the potential benefits

 

Guidance on greener methods is available from a wide range of resources but even a basic Environmental Policy can reflect well on a company.

 

With customers and businesses increasingly keen to resource products sustainably, a green policy highlights a commitment to ensure a certain level of responsibility.

 

Given that this is viewed in a positive light, the green credentials can then be attached to brands and products to enhance their appeal to the market.

 

Good green policies can also help to boost staff morale and retention, while more appealing products can help to increase interest levels and widen the customer base.

 

Taking time to implement such a strategy could therefore provide beneficial for many different aspects of a business, and there is not a reason why such an option should be too costly either.

 

By Phil Smith

 

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1144.

View all Business Insights