HSBC UK has taken a significant step forward in promoting sustainable practices amongst small and medium-sized enterprises (SMEs) by introducing an innovative Sustainability Tracker tool.
This unique tool is designed to help SMEs measure their current sustainability performance and devise effective strategies to minimise their ecological footprint.
The complimentary Sustainability Tracker will guide SMEs through a customised self-assessment procedure.
This process will help SMEs understand their current sustainability status, compare it to similar businesses and receive valuable guidance on enhancing their green operations.
Sustainable Solutions for British Businesses
The launch of this tool complements HSBC UK’s comprehensive array of sustainability solutions for its 1.3 million commercial banking customers.
These solutions include Green Term Loans, Green, Social, and Sustainable Bonds, and Green Asset Finance options.
According to Robert King, UK Head of Commercial Banking Sustainability and Structured Finance at HSBC UK, an increasing number of SMEs are realising the potential business opportunities that sustainability can offer.
These SMEs are keen on showcasing their commitment to the environment to their customers, investors, employees, and other stakeholders.
However, King noted that these SMEs often struggle to find the right resources and tools to achieve their environmental goals.
Can SMEs Afford to Go Green?
HSBC UK’s research reveals that 15% of small business owners in the UK claim they lack the means to gauge their business’s sustainability.
Moreover, a tenth of them believe they cannot afford to invest in techniques to track their sustainability performance.
The unveiling of the Sustainability Tracker aligns with the recent collaboration between the We Mean Business Coalition and B Corp certification body B Lab.
This partnership aims to aid smaller businesses in creating net-zero strategies.
Taking the Pulse of UK SMEs
SMEs made up an astounding 99.9% of the UK’s business population at the beginning of 2021, tallying up to 5.6 million firms.
Despite an increasing awareness of environmental issues amongst SMEs, hurdles such as limited resources and economic challenges often impede progress towards environmental goals.
A recent YouGov survey revealed a significant discrepancy in sustainability practices between larger firms and SMEs.
While 57% of larger firms have implemented energy reduction measures and 35% have transitioned to renewable energy, only 45% of SMEs are actively pursuing energy efficiency, and a mere 21% have adopted renewable energy.
As a result, many banks, consultancies, and service providers have recently launched dedicated services to support SMEs in developing net-zero strategies and investing in clean technologies.
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