SME Climate Hub launched to support small businesses to go green
A new, free, tool has been launched to help small businesses cut their energy bills and go green in less than an hour.
The SME Climate Hub, in partnership with Giki and supported by the UK Government’s Department for Energy Security and Net Zero, has launched the Climate Action Planner to help firms take practical steps in decarbonising, by providing businesses with their own tailored climate plan.
Small businesses often lack the time or resources to develop detailed climate action plans. The SME Climate Action Hub hopes to change that by providing a simple, guided process that produces a customised action plan in around 60 minutes. The Climate Action Planner asks users to answer a short set of questions about their business before providing them with a step-by-step roadmap. The Climate Action Planner draws on a database of more than 750 actions to provide users with a plan that is tailored to their industry and business goals, rather than a generic, one-size-fits-all approach.
Pamela Jouven, Director of the SME Climate Hub, has said: "For many small business owners, climate action can feel complicated and expensive. This tool focuses on what is practical - helping businesses lower bills and take action straight away. This isn't just about going green - it's about staying competitive. By cutting energy waste and improving efficiency, small businesses can reduce costs, protect themselves from volatile energy prices and keep up with growing expectations from customers and supply chains."[i]
SMEs more aware of net zero barriers than benefits
It is hoped that the new Planner will jump start SME adoption of sustainability actions given that SMEs (who account for approximately 50% of all business-driven emissions in the UK) continue to show limited uptake of sustainability initiatives, primarily due to uncertainty about the financial advantages and concerns about high costs[ii]
Last year, the UK government-backed Willow Review explored the economic potential of sustainability practices for the UK’s 5.5 million SMEs (Small and Medium Enterprises), a group who collectively represent 99% of the nation’s businesses[iii]. It found that there is a significant green growth opportunity with those engaging in sustainability measures already reaping the rewards. The report shows that of those employing sustainability measures 67% of SMEs reported reduced operational costs (e.g., energy, waste, materials). Further, 52% said they attracted new customers due to their sustainability commitments, and 35% saw improved customer loyalty[iv].
However, the more recent UK Net Zero Business Census undertaken by the British Chambers of Commerce and PlanetMark in August last year, found that just 35% of SMEs still consider net-zero to be a strategic priority[v].
It found that transitioning to net zero is a low priority for most smaller businesses including the majority of those in high-emitting sectors. However, placing a low priority on net zero has not deterred most smaller businesses from taking some action, with 77% of SMEs saying that they have taken at least one action already.
SMEs generally perceive that there are benefits to their organisation progressing towards net zero, with 63% seeing at least one benefit. Yet, the perception of barriers to net zero progress is more widespread than the perception of benefits, where more than four in five (83%) SMEs perceive at least one barrier to progress on net zero for their organisation. SMEs that have taken at least one action are also more likely to perceive barriers to progress, suggesting that some barriers only become apparent once businesses are on their net zero journey.
References
[i] SME Climate Hub: Free tool helps small firms cut energy bills and go green in under an hour
[ii] The Willow Review
[iii] Willow Review finds significant green growth opportunity for the UK’s 5.5 million SMEs
[iv] The Willow Review - Final Report
[v] SMEs and Net Zero report 2025 | British Business Bank
