British businesses' efforts to improve their green credentials are at risk of faltering because of a recession-borne focus on cost savings, according to a new study from Lloyds TSB Commercial.
The study shows that although the downturn has spurred some businesses to adopt green initiatives in their drive to cut costs, this focus on finances means many firms are losing sight of the broader risks of environmental inertia, and the commercial opportunities to be gained from boosting green credentials.
The key findings of the study are:
• Only two fifths (38 per cent) have taken steps to analyse the environmental risks to their businesses.
• Half of the firms surveyed say cost is the principle barrier to pursuing environmental initiatives.
• However, half of businesses questioned (48 per cent) believe that 'going green' would result in a positive reaction from customers.
John Maltby, managing director, Lloyds TSB Commercial, said: "As hard as this recession has been, it has spurred thousands of small firms to think more carefully about their environmental responsibilities. It is clear that businesses do seem to recognise the value of improving their green credentials, and the dangers of not doing so. Coming out of the recession many firms do seem focused on the costs savings to be gained from environmental improvements, but many are being held back because they fear the cost of taking action."
Where firms have taken action, their efforts have been more focused on ad hoc steps which help to cut costs, however far fewer have invested time or money to develop more comprehensive strategies. Two thirds of firms (67 per cent) have implemented environmental policies such as waste reduction schemes or energy saving programmes, but only two fifths (38 per cent) have taken steps to analyse the environmental risks to their businesses.
Most companies recognise that there are rewards to be gained from becoming environmentally responsible. Almost half (48 per cent) of the businesses questioned believe that 'going green' would result in a positive reaction from customers, while a similar percentage (47 per cent) think they would benefit from reduced operating costs. Profitability, staff retention and morale, market leadership, and improved ability to win contracts were also high on the list of recognised benefits.
John Maltby continued: "The fact is that no business can afford to ignore the environment. There are huge risks for any company that does not improve its credentials and there are huge opportunities to be seized as well. Businesses that can think strategically about how environmental responsibility can help attract customers will position themselves well for future growth."
