A survey commissioned by Uisce Éireann which published this week has found that costs remain both the primary driver and obstacle in SMEs taking sustainability action.
The survey, which interviewed the owners of more than 350 small- and medium-sized businesses, sought their opinion on the importance of investing in sustainability for their businesses and customers. It also examined the barriers that currently exist to investment in the area.
The survey found that for seven in 10 SMEs said cost savings is the primary driver in decision-making on sustainable investment, but cost concerns remain the primary obstacle for almost 70% of SMEs.
The survey also revealed that 9 in 10 businesses still intend to maintain or increase their investment in sustainable practices in the coming year, but there has been a slowdown overall in the number of businesses planning sustainability investments, falling from 20% in 2023 to 15% in Q2 2024. 75% of companies surveyed intend to maintain levels of investment, with 15% planning to increase it, but only 11% have accessed external expertise in the past 12 months.
Speaking about the survey findings, David Broderick, Director of the Small Firms Association (SFA), said: “it is worth noting that small businesses are still operating in a high inflation economy with 68% of SMEs claiming that costs remain a primary barrier to investment.”
The top three areas where SMEs are most actively tackling environmental issues are reducing their energy use, waste, and plastics. The proportion of businesses taking measures to conserve water is at its highest level in three years, with more than seven SMEs in 10 say they are conserving water, and a 10% decrease over the same period in the number who say it is ‘not on their radar’ (31% in 2022 to 28% in Q2 2024.)
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