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Financial pressures force SMEs to shelve green projects

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5th Aug 2009
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Many UK firms are neglecting efforts to be more environmentally friendly, according to research from the UK200Group.

The organisation, which represents over 110 independent accountancy and law firms, teamed up with the University of Middlesex to quiz 181 small- and medium-sized businesses across a variety of sectors.

While 80% of firms surveyed thought environmental issues should be a high priority, issues such as energy cost and waste reduction fell behind concerns such as keeping up to date with skills and training (a priority for 51%) and health and safety (listed by 46%). In fact, 58% of those questioned admitted that they did not currently have an environmental policy in place.

Just over half (53%) agreed that increased legislation would ensure environmental improvement, although 42% disagreed with this.

Perhaps surprisingly, 45% of firms agreed that green taxes were a good way to encourage environmental improvements in business, but the question of the use of the revenue was raised several times.

Despite growing public awareness of environmental issues, there appeared to be little pressure from clients on businesses to go green, with most firms estimating fewer than 10% of their customers had enquired about environmental performance. The danger of a firm that invested in its environmental performance being undercut by one that had not was also highlighted.

UK200Group chairman Kevin Dickens said:“The cost/benefit analysis is never clear cut and decisions will continue to be made on feelings and instinct. Continuing to raise awareness and engage in discussions about the issues must be encouraged”.

To see the full survey report, visit www.uk200group.co.uk.

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By draycir
06th Aug 2009 15:52

Green projects can SAVE you money
I would have thought that the main priority for many SMEs at the moment is reducing overheads, cutting costs and saving money.  It’s all about cash flow.

Yet, it’s here that green issues can actually be at their most powerful.  But, perhaps it’s all about how you pitch it and how it’s perceived? Often wrongly, businesses mistake being 'environmentally friendly' with expense when in fact it can seriously cut costs and save money. 

Just look at the benefits from going paperless where a typical SME using paperless software such as Spindle Professional can expect to get paid quicker and save thousands by sending information such as invoices out electronically.

When encouraging SMEs to be more environmentally friendly perhaps the green message should play second fiddle to the primary cost savings message.  If the knock-on benefit from cutting costs is being more environmentally friendly perhaps it will only help to sweeten the deal and ensure that green projects aren’t shelved.

Richard Reaveley
Director
Draycir
http://www.draycir.com/spindle
http://twitter.com/reaveley

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