The Power of Planning Fuelling the road to Net Zero

Welcome to the second?article in our Net Zero Monitor series where we explore how SMEs are making progress towards Net Zero, the challenges they face and the power of working together to drive change.

The latest Lloyds Bank SME Net Zero Monitor reveals that sustainability considerations are important to 93% of SME businesses and that for 83%, sustainability has become more important than one year ago. This points towards a growing impetus when it comes to accelerating the Net Zero journey for SMEs of all shapes and sizes.

The growing awareness around sustainability issues is simultaneously driving the topic up the priority list for SMEs, and with increasing awareness comes the need to take more significant action. Is it time for you to think about what action you are taking within your business to make progress?

Getting to Net Zero is a task that requires thoughtfulness and planning for SMEs at every stage of the journey. It is a stark reminder that the power of planning should not be underestimated and planning your Net Zero journey is a great way to start. For example, what quick actions can you take now such as switching energy provider or increased recycling? In addition, what longer term goals could work for your business such as shifting product design and exploring the sustainability of your supply chain?

Not every initiative will prove to be a success but taking quick actions are key when you begin to plan your Net Zero journey. ?As you look to do more, the next step is to combine these actions into a longer-term strategy. Having made the first steps towards Net Zero, now is about building a roadmap to measuring, monitoring and impact.

Our research also shows?growing confidence amongst SMEs about their role and the actions they can take to progress towards Net Zero. When it comes to being focused on how they will reach the Net Zero goal, 39% of SMEs have set a target with a deadline, 24% have set a target but not a deadline, and 13% have not set a target but are putting a plan in place.

Alongside having a plan in place, SMEs are taking more significant action on their journey to Net Zero.

The top actions taken by SMEs on the road to Net Zero are:

1. Recycling and reducing waste (62%)
2. Reducing energy consumption (60%)
3. Sourcing renewable energy (36%)

With Net Zero planning moving up the SME agenda and businesses starting to take action and build plans, confidence is growing. This confidence is driving them to take action and have sustainability-led decision-making embedded within their business from the top down.

25% of the respondents to the Net Zero Monitor say sustainability decision-making is a core part of their day-to-day role, and 44% say they are one of several individuals in the business evaluating sustainability. This growing confidence, action and decision-making increasingly means that sustainability planning and perspectives are incorporated into business planning and activity on an ongoing basis.?

Read more about the findings from our Net Zero Monitor .