The Importance of Small Business for the Clean Energy Transition

Large corporations play an integral role in the global economy. After all, they contribute to 28% of the global GDP. However, the other significant portion of the global GDP comes from small and medium-sized businesses.

When it comes to the clean energy transition, the corporate giants may have huge investments that they can utilize to improve products and processes to make more environmentally-friendly choices. However, as they strive for cleaner energy, remember they can't do it alone.

Given the remarkable contribution of small and medium-sized businesses, the clean energy transition is impossible without their fundamental support.

Let's learn more about the importance of small businesses for the clean energy transition and look at a few measures they can take for a smoother transition.

The Significance of Small Businesses for Cleaner Energy Transition

Climate change is in full swing. Unfortunately, governments and individuals are unable to fully embrace the growing urgency of the climate crisis.

While the world focuses on how 'big businesses' lead their way in the pursuit of zero-carbon emissions, let's not forget the small businesses.

After all, they are making a significant contribution to the global economy.

Small businesses with less than 500 employees are the lifeline of the global economy. In the U.S. alone, small businesses make up to 99.9% of businesses. Moreover, nearly 50% of the workforce is employed by small businesses.

While the pandemic has influenced the sector severely, small businesses still manage to create around two-thirds of new jobs in the industry.

Globally, small and medium businesses represent around 90% of businesses and employ more than 50% of the labor market worldwide.

Small and medium businesses contribute up to 40% of the GDP in emerging economies.

Why Is the Role of Small Businesses Critical for Clean Energy Transition?

The potential impact on the environment by a small business maybe insignificant. An individual organization can have relatively negligible carbon footprints.

However, given the overall size of small businesses worldwide, the blanket impact of these businesses on the environment can be huge.

Moreover, small businesses often lack the resources to effectively counter climate crises. They lack investment in technology and green infrastructure which eventually contributes to the carbon footprints.

However, there are several measures that small businesses can take to reduce carbon emissions and move towards clean energy transition.?

What Measures Can Small Businesses Take for Clean Energy Transition?

To find some potential solutions to the dreaded problem of climate change, the measures small businesses can take must be broken down into multiple small steps.

Each small measure will help you assess where your small businesses’ emissions are coming from. Once you know the source, you can figure out ways to reduce the emissions and move towards a clean energy transition.

Switch to Renewable Energy Sources

One of the most effective ways that can help small businesses for a green energy transition is switching to renewable energy sources.

Instead of relying on the traditional energy source, small businesses can opt for solar energy. The renewable energy source is emission-free. Moreover, it doesn't pollute your environment.

Apart from bringing several benefits to the environment, it reduces the reliance on businesses from the grid, where they have to deal with price fluctuations throughout the day. While there's a significant cost involved in the installation of solar panels, businesses don't have to pay electricity bills. Moreover, solar panels require minimal maintenance.

Hence, installing solar panels allows businesses to transition towards clean energy while helping them save money in the long run.

Go Energy-Efficient

It's often not very obvious, but workplace settings heavily depend on light bulbs to light up the space.

On average, an incandescent light bulb uses around 60 watts of electricity. As a result, a single light bulb used for 8 hours a day will use around 48.8 kilowatts of electricity per month. Together, it accounts for an annual electricity consumption of 175.2 kilowatt-hours of electricity per year.

And light bulbs are just one of the many pieces of electrical equipment in an office space that consumes energy.

One of the simplest ways to reduce energy consumption is to switch to more energy-efficient light bulbs.

LED lights often make the best choice as they are 90% more energy efficient compared to conventional bulbs. Moreover, LED lights last up to 25 times longer than regular incandescent bulbs.

Make sure to replace all the incandescent bulbs in your overhead lights, desk lamps, and anywhere else in your workplace with LED bulbs.

Consider Installing a Ground Heating System and Other Sustainable Investments

Do you plan to construct a building for your small business?

Then it’s best to invest in a geothermal heat pump.

A geothermal heat pump utilizes the ground heat and relies on the use of constant Earth's temperature to heat or cool the building. Installation of a geothermal heat pump means that small businesses do not have to rely on electricity or fuel to maintain the temperature of their workspace, which makes it the greenest option.

However, the only drawback of installing a geothermal heat pump is its high cost.

A ground heating system is a relatively expensive investment that can challenge small businesses.

Moreover, when you’re starting up your organization and are investing in an area of land for a building or space, you can make sustainable investments.

Plan your office space construction such that there's a minimal environmental impact. Take sustainable measures like LEED certification for your office space. Moreover, consider installing carbon-absorbing vegetation inside and outside your office space to improve the environment.

Optimize Energy Usage

Many small businesses are still using electricity from the grid.

But when most individuals and businesses are consuming electricity from the grid together, the service providers increase the charges per unit. The increased charges account for faster electricity acquisition to meet the higher need of the consumers. These are known as peak hour charges.

As the world transitions towards clean energy, small businesses can optimize their energy usage by going off-grid during peak hours and relying on alternative green sources of energy during these hours.

While this measure will have a positive impact on the environment, it will also help small businesses save utility costs which will reflect in an overall improved business bottom line.

Check Insulation

Almost all small businesses rely on a heating and cooling system to maintain their workplace temperature.

However, it’s critical to check for insulation throughout the building.

Energy consumption is much higher in spaces that are not insulated. Due to improper insulation, the facility struggles with maintaining the temperature. As a result, the heating and cooling system has to constantly work to maintain the temperature, which accounts for increased energy consumption.

Lack of insulation or improper insulation is a significant contributor of higher energy consumption which accounts for increased carbon footprints.

Electrify Company Vehicles

Does your small business involve the transportation of goods and people? If yes, it's time to switch your fossil fuel-powered vehicles to electric ones. The change is even more significant if your small business has an entire fleet of vehicles.

While it may seem like an expensive measure for a small business, it’s a cost-effective solution in the long run for small businesses as well as for the environment.

Make Smarter Travel Choices

While electrifying company vehicles is a smart move, if your company involves a lot of business travel, it’s also critical to make smarter travel choices.

For small businesses where employees are required to fly often, it's best that organizations keep it to a minimum. Reducing your employee's travel is a foolproof way to reduce your businesses' carbon emissions.

With improved technology, it’s best to optimize the use of virtual tools to connect with individuals and businesses in another geographical region. Capitalize on apps like Zona to ensure that your employees only travel when absolutely necessary.?

Moreover, in instances where travel is inevitable, it’s recommended to check the carbon emissions of the flight on Google Flights. The information will help you make a more responsible decision regarding your employee’s travel.

Keep a Check on Your Employees’ Commuting Decisions

Small businesses are a key employment driver. They create over 90% of employment in global economies. Hence, it's critical to encourage their employees to make sustainable decisions for the commute.

While remote work is on the rise, many businesses expect their employees to be physically present at the workplace, which means they have to commute to and from work.

Since transportation is a major contributor to environmental damage, it's best that businesses encourage their employees to make responsible commute decisions. Encourage employees to carpool or use public transport instead of individual vehicles.

Businesses can also offer an incentive for employees to work from home on certain days of the week to reduce carbon emissions.

Revisit Your Product’s Lifecycle

Is your small business a production facility?

As your small business moves towards a clean energy transition, it's important to revisit your business's product lifecycle.

Recheck the stages of production where emissions are being created. Think about measures you can take to improve your product’s manufacturing cycle.

Moreover, it’s also important to also check your supply chain and identify potential areas of improvement that can help reduce carbon emissions associated with your business.

Enroll Your Business in a Voluntary Green Power Program

It's important for small businesses to take measures for clean energy transition, and one of them could be to enroll in a voluntary green power program.?

Utility green tariffs?are voluntary programs that businesses can take advantage of to reduce their carbon footprints and the negative environmental impact.

The Environmental Protection Agency (EPA) offers this program which allows small businesses to benefit from the use of green technologies so they can reduce their emissions.

Invest in Carbon Offsets

Carbon offsets are schemes that allow organizations and individuals to invest in global environmental protection projects.

When a small business invests in a carbon offset, it shows the organization’s commitment to actively work to reduce carbon emissions from the environment.

Through your investment, global environmental authorities can fund new environmental protection projects that can help reduce greenhouse gas emissions.

While the measure doesn’t directly reduce your businesses’ carbon emissions, it evolves you as an environmentally friendly company where you take some responsibility for your organization's carbon emissions.

Clean Energy Transition Is an Achievable Goal for Small Businesses

If you're a small business, then you would know your importance in the global economy. While corporate giants have more visibility, small businesses are the main drivers of the economy. They generate the most employment in the economy and heavily contribute to GDP.

However, they also have a tremendous impact on the environment. While the potential impact of an individual small business on the environment may be insignificant, when combined, the collective implications on the planet by small businesses can be huge.

It's therefore critical that small businesses take a step forward and take measures that can allow for a clean energy transition.

By taking small steps that are feasible for the business and the budget, small businesses can reduce their emissions while improving the organization’s bottom line.

And while small businesses take measures to support the environment, it's critical that they publicize their efforts. As the world transitions to clean energy, all business stakeholders, including the customers, appreciate a business that takes environmental concerns seriously.

As clean energy alternatives for businesses continue to expand, a small business can hold up its green energy portfolio and continue to make a positive impact on the planet.

If you’re a small business looking forward to attracting and retaining talent that can make an actual impact on your organization, connect with Whitham Group.

We are a leading renewable energy recruiting firm that can help your small business navigate through the clean energy transition while attracting and retaining top talent in the industry.

Let's work together because We Find Talent That’s Off the GridTM.