A Government-backed review has been launched to support millions of small UK businesses to boost their bottom line through sustainability.
Campaign group Small Business Britain, which is spearheading the review, said it aims to identify and highlight the potential financial benefits that can be captured by bringing in green practices.
The initiative will be jointly chaired by small business minister Gareth Thomas, Barclays’ head of sustainable finance Nick Stace and Small Business Britain founder Michelle Ovens.
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The uptake of sustainability initiatives among the UK’s 5.5 million small businesses has been limited due to barriers and concerns around high costs and the uncertainty of financial benefits.
Yet this group of businesses account for an estimated 50% of all UK business-driven emissions, according to the British Business Bank.
A recent survey by the campaign group and BT also suggests that only 24% of small businesses currently recognise the financial benefits of sustainability.
Small Business Britain said the review will seek to reframe how firms think about greener practices by providing evidence of how they can improve profitability and long-term growth as well as reduce environmental impact.
It will also encourage collaboration between businesses, government, and financial institutions, the campaigners said.
Mr Thomas called small businesses the “driving force of our economy”, adding that they represent 99% of all UK businesses.
“Yet, we know many entrepreneurs face uncertainty about the financial benefits of adopting sustainability in business,” he said.
“The Willow Review aims to bridge that gap. I’m delighted to support this vital review, which will prove that sustainability isn’t just good for the planet — it’s great for business too.”
Ms Ovens said: “Small businesses stand to benefit hugely from sustainability, as well as having the potential to make a hugely positive impact on reducing the UK’s emissions.
“But while business owners are often incredibly mission-driven and see the social value of sustainability, few recognise the financial opportunity.”
The work will include research and an evidence-gathering exercise into the financial impact of sustainability practices, including a consultation of small businesses through surveys and focus groups.
The final report will be published in May 2025, outlining the financial case for sustainability and share actionable recommendations for government, industry and policymakers to support small businesses on their journey.
The review is also backed by a steering board of industry and government leaders, including representatives from the Energy Department (DESNZ), Barclays, British Chambers of Commerce (BCC), BT, Business Climate Hub, Federation of Small Businesses (FSB) and the Glasgow University.
