Sustainability remains a priority for UK SMEs, Novuna finds

Almost one in three UK small businesses (31%) place sustainability at the heart of their business culture and planning, according to new research from Novuna Business Finance.

A further 38% of small businesses say they are taking practical steps to improve sustainability this year, highlighting the continued importance of environmental considerations in business decision-making despite challenging economic conditions.

The findings, published alongside the latest season of the Novuna Sustainable Business Podcast, suggest that sustainability continues to influence how smaller businesses operate, from their use of materials and technology to customer relationships and long-term investment decisions.

To explore how businesses are putting sustainability into practice, Novuna spoke to three businesses operating in construction, events and food production, with their experiences brought together in a new report.

In the construction sector, Lambert Home Builds and sustainable building advocate Eco Renovation Home discussed the role of natural materials in improving energy efficiency and helping properties cope with rising temperatures.

Both highlighted the importance of educating the next generation of builders about sustainable construction techniques and materials.

Events company Your Scene shared its journey towards becoming a certified B Corp, explaining how its sustainability ambitions developed following COP26. The business emphasised the importance of reducing the environmental impact of events while recognising the continued value of in-person experiences.

Meanwhile, artisan coffee company Blue Turaco discussed its work to promote Ugandan coffee in the UK and encourage sustainable farming practices, highlighting the importance of fair financial returns for growers investing in more environmentally responsible production.

Environmental concerns influence AI adoption

Novuna’s research also suggests that environmental considerations are influencing small businesses’ attitudes towards emerging technology.

A nationally representative survey found that 31% of UK small business owners are using artificial intelligence to support their operations.

Among those using AI, 22% expressed concerns about the technology’s consumption of energy and natural resources.

The findings suggest that businesses are weighing the potential operational benefits of new technology against its environmental impact.

Jo Morris, Head of Insight at Novuna Business Finance, said: “At Novuna Business Finance, these insights shape how we support businesses.

“Our conversations continue to show that sustainability means different things to different organisations depending on their priorities, customers and ambitions. That’s why we take a flexible, practical approach, adapting the support we provide to help each business achieve its own goals.”

The research highlights how sustainability is increasingly being incorporated into everyday business decisions, with SMEs balancing environmental objectives against financial pressures, operational requirements and opportunities for growth.