The latest growth tracker from NatWest showed sustainability and decarbonisation have slipped down the priority list for SMEs. With SMEs making up [1]99 percent of the UK business population, this is worrying for the government’s national net zero commitments – the latest of which saw [2]Prime Minister Sir Kier Starmer aim for a 80 percent cut in emissions by 2035. However, new findings from Better Bankside’s Southwark Climate Collective (SCC) programme, have revealed that a targeted investment of just £5,000, combined with 20 hours of tailored support, could rapidly unlock the decarbonisation progress of the UK’s small businesses.
Better Bankside, the Business Improvement District for London’s Bankside area, has today published findings from the second stage of its SME sustainability programme, the Southwark Climate Collective (SCC). The programme, which was launched in October 2023, empowers Southwark SMEs to take practical action to reduce their carbon emissions and build a more resilient, sustainable business.
As rising costs and economic uncertainty force small businesses into survival mode, sustainability has slipped down the priority list for UK SMEs. Yet SCC’s work on the ground paints a more hopeful picture: when given tailored, hands-on support, SMEs are not only willing to take action to decarbonise their businesses – they do.
From audits to action: SCC second stage
The second stage of SCC was designed in response to learnings from its first phase, which supported 141 SMEs in 2024. While audits and recommendation reports were highly valued, evaluation showed that many businesses struggled to implement recommendations due to a lack of time and resources, difficulty securing senior management or landlord approval and challenges around maintaining engagement.
In response, the second stage shifted from a one-size-fits-all, audit-led model to a more flexible approach focused on capability-building and implementation. A select group of 24 SMEs received up to 20 hours of bespoke, one-to-one consultancy, alongside expert-led training, workshops and online resources made available to a wider cohort of SMEs.
Key findings from the Southwark Climate Collective’s second stage
· Small, targeted investment delivers results. An investment of approximately £5,000 and 20 hours of specialist, tailored support can unlock significant sustainability progress for SMEs.
· One size does not fit all. Effective sustainability support must be bespoke, delivered by specialists, and focused on what is most important for each business.
· Willingness is high, support is low. SMEs are motivated to act on sustainability but often lack clarity on where to start, what to prioritise, how to measure impact and need guidance on sustainability regulation.
· Resource constraints are the main barrier. Time, staff capacity and systems – not ambition – limit progress.
· ‘Greenhushing’ is widespread. Many SMEs are already doing positive sustainability work but are reluctant to talk about it, fearing reputational risk or saying the wrong thing. Clearer communications support can unlock commercial benefits, including improved tender success and faster client decision-making.
· Data challenges are universal. Many SMEs have fragmented or incomplete carbon data, while others have yet to set a baseline at all. AI-enabled tools can significantly reduce the administrative burden of data management and compliance.
In addition to the intensive support provided for 24 SMEs, the second stage of the programme also offered a suite of expert-led training sessions, workshops and online resources for 60 additional SMEs. Of these training sessions and courses, the most popular topics for SMEs were accredited Carbon Literacy Training, sustainability certifications, the circular economy and carbon emissions. SMEs can access a selection of the programme’s 2025/ 2026 webinars for FREE on a range of topics; from demystifying Scope 3 Emissions and how to reduce food waste to how to embed sustainability into procurement polices here: https://southwarkclimatecollective.co.uk/webinars/
About the new findings, Nicole Gordon, CEO of Better Bankside said; “It is not enough to simply provide SMEs with auditing tools, or decarbonisation knowledge. They need practical support to help them actually get things done.
“Most small businesses are time-poor and lack the internal capacity or expertise to deliver sustainability alongside day-to-day pressures. What surprised many of us, including the experienced consultants we brought into the project, was how willing SMEs were to engage deeply when the support was right..”
A model that can be scaled nationally
Long-term, the ambition is to scale a model of business support beyond Southwark. The programme has been designed to produce templates, tools and a replicable framework that other BIDs and local authorities can adopt.
The findings also point to a clear role for national government. While large organisations benefit from established reporting frameworks and guidance, SMEs face a policy and knowledge gap.
Better Bankside is calling on government to:
· Reframe the discussion from education on data/ decarbonisation etc. to investment in small-scale, high-impact SME sustainability support
· Introduce incentives such as sustainability-linked business rates relief
· Support the development of a national SME sustainability toolkit
With the right support, SMEs can play a far greater role in meeting the UK’s net zero ambitions while strengthening their own competitiveness in a challenging economic climate.
For more information about the Southwark Climate Collective, please visit: https://southwarkclimatecollective.co.uk/
