Green policy 'ignored' as small companies struggle

Small and medium sized enterprises are abandoning green business practices as they wrestle with recession, the Environment Agency has reported.

By Roland Gribben Published: 8:46PM BST 17 Aug 2009
A study covering 7,000 companies found a 75pc drop in those operating what the agency described as "a basic formal environmental management system". More than half said the system or environmental policy was of "no use" to their business in the current climate.
The agency, in a report out today, expressed disappointment at the low priority being given to green policies after earlier evidence of an improvement in business practices. It said that with half of all serious pollution incidents caused by small and medium enterprises (SMEs) and average fines running at more than £10,000, small businesses "ignore green legislation at their commercial peril".
In the past two years the number of small businesses reducing energy and water consumption had doubled, according to data collected by NetRegs, the environmental website, for the agency.
Almost 85pc were now recycling waste compared with 66pc in 2007 and overall 55pc had taken some action to reduce their contribution to environmental damage.
The research also showed a fall in the appreciation among SMEs about their impact on the environment. Just 7pc thought some of their business operations were harmful – but under further questioning the total jumped to 46pc.
Debbie Chatting, the website's strategy manager, said the survey had unearthed a "level of denial" among some small businesses and added: "SMEs make up 99pc of British business so their cumulative impact is huge. They simply cannot be apathetic or maintain indifference."
The website is also encouraging businesses to appoint "green ambassadors" – employees responsible for overseeing energy improvement programmes.