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Lack of clear guidance preventing small firms going green

October 16, 2007

Limited access to information, a lack of incentives and confusion over where to go for advice are stopping small businesses from becoming more environmentally-friendly, according to HSBC.

The bank’s Small Business Research Trust survey found that the lack of incentives for businesses to go green is a barrier for 50 per cent of small firms. Almost 40 per cent said a lack of support from government agencies was holding them back, while 36 per called for one single source of clear information.

HSBC’s research also revealed that 38 per cent of small firms believe it would be difficult to reduce their environmental footprint.

"Changes don’t always have to be costly or a grand scale to make a difference," said HSBC head of business banking Huw Morgan. "Simple things, such as recycling waste, turning off equipment at the end of the day and giving printer cartridges to charity all add up."

According to Federation of Small Businesses (FSB) spokeswoman, Belinda Webb, the environment is way down on the list of priorities for most small firms.

"If there was better publicity and less fragmented advice, businesses would be more likely to act," she said. "If businesses are going to make the effort to go green, it needs to be spelt out for them, so it’s as easy as possible."

Responding to the survey findings, Environment Agency spokeswoman, Zula Haigh, said: "We accept that it is not always easy for small businesses to reduce their environmental footprint.
"However, UK environmental regulators have combined forces to try to make it easier by creating a website aimed specifically at helping small businesses –www.netregs.gov.uk. This provides the single source of information that so many small business need" she added.

"HSBC’s findings might be affected by what businesses regard as environmental issues," explained Envirowise programme director Dr Martin Gibson.

"We find many firms still regard environmental issues as something outside of their everyday business activities. In reality, everything they do has some effect on the environment. If they can be more efficient in how they use things when they work, then they can start to reduce their environmental impact.

"The building blocks to a greener, more profitable business need not be as complex or time-consuming as some may anticipate," he continued. "Simply starting with low or no-cost changes to paper, energy and water usage can result in quick wins which carry the long-term benefits of reduced costs, better performance and improved working conditions."

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