Green is good

Helping the environment and running a profitable business do not have to be mutually exclusive. Saving energy, recycling and reducing pollution can cut your operating costs; capitalising on their PR value can attract new customers. Yet the UK's small businesses are not picking up on the benefits of making small changes to the way they operate.

"There is a misconception among small firms that it's expensive to be a 'green' business," says Envirowise spokesman, Stuart Ballinger. "But there are lots of simple low-cost measures you can take, such as reducing your water use and testing for leaks, or installing energy-efficient light bulbs."

Cost savings

Unnecessary energy consumption can account for a quarter of a small firm's utility costs - and business is one of the UK's biggest polluters. "Business is responsible for 40 per cent of the UK's annual carbon emissions, so it's vital that SMEs reduce their energy use and cut carbon," says Carbon Trust director Hugh Jones.

"It doesn't need to be costly and the benefits can be almost immediate. You can save up to 20 per cent through no-cost and low-cost measures," he continues. "Turning down the heating by just one degree, can cut your annual bill by ten per cent. By encouraging staff to turn off lights, you can save up to 15 per cent on your bills."

PR benefits

Envirowise research has also found that two-thirds of consumers are more likely to buy from a company with a low carbon footprint. "Small firms should take advantage of the current swell of public opinion towards environmentally-friendly firms," advises Jones.

"Going green is a way of differentiating from your competitors. If you're making real efforts to cut carbon emissions, tell people what you're doing," he continues. "That way, potential customers can see the difference your company is making. Employees, too - people want to work for businesses that are taking steps to reduce emissions."

Preparing for the future

"Staff are more likely to buy into what you're doing if you include them in your efforts," agrees Ballinger. "Don't force them into being green as a cost-saving initiative, but allow them to participate and make suggestions on how your firm could help the environment.

"Sooner or later all firms will be legally required to make changes to their working practices to reduce their carbon footprint," he continues. "Businesses are already obliged to comply with some environmental laws - such as the WEEE regulations. It's better to make changes now and let your staff and customers know that you're a forward-thinking business, rather than just following a trend and making token gestures."