A new survey from waste management firm, Biffa, has found that almost half (42 per cent) of SMEs in England are unaware that Simpler Recycling legislation, which is due to launch in March 2025, will impact their business.
Biffa states SMEs will face extra challenges from the scheme compared to corporate businesses – like finding space for new bins, separating all recycling into material type and training staff – compounded by the risk of a fine if not implemented, adding for many, it will be the first time doing so.
That said, 58 per cent of English SMEs ‘do’ believe Simpler Recycling will affect their business. When it comes to wider UK policies, affected SMEs anticipate Extended Producer Responsibility (53 per cent), Digital Waste Tracking (52 per cent) and the existing Plastic Packaging Tax (51 per cent) having the greatest impact.
Focusing on sustainability
It comes as SMEs report sustainability being a greater business priority in 2024 compared to last year – the third highest (36 per cent) following cost efficiency (45 per cent) and revenue growth (39 per cent). When Biffa issued a similar survey in 2023, sustainability was the lowest priority for small businesses.
What’s more, four in five (80 per cent) see waste management and recycling as important to sustainability, with three in 10 (29 per cent) saying the two are ‘very important’.
They prevalently measure and report on the reduction of general waste (67 per cent) in their efforts to be more sustainable – a significant rise on 39 per cent last year. SMEs are also vigilant on the recyclability of products and packaging they purchase or produce (60 per cent). Perceptions from customers or employees also matter, as over half (56 per cent) track this compared to just a fifth (22 per cent) last year.
In fact, nine in 10 (91 per cent) SMEs have a formal sustainability strategy either in place, planned or in progress. Four in five (82 per cent) also say their business is focused on being part of Britain’s circular economy – compared to just half (52 per cent) in 2023 – but, crucially, nearly all (98 per cent) say that more support is needed for their business to be sustainable.
Financial incentives (42 per cent) are the type of support SMEs need most in order to be sustainable, which according to Biffa is understandable given that – as in 2023 – the cost (45 per cent) of making changes is their biggest barrier to sustainability, followed by increased expenses of products and or services (38 per cent). Monetary concerns are compounded by a lack of clarity on sustainability metrics (30 per cent).
Two-fifths (42 per cent) of SMEs seek advice on the best options available. They also want to find new ways to be sustainable, desiring investment in innovation and technology (39 per cent), product life cycle, and circular supply chain analysis (37 per cent).
Commenting on the findings, Maxine Mayhew, Chief Operating Officer – Specialist Services and Collections, Biffa, said: “Being more sustainable is not always simple or cost-free, but more SME decision makers are prioritising sustainability than ever. Our research shows that small and medium sized businesses are capable and motivated to make positive change.
“This change and growing commitment to sustainability, through what have been incredibly tough trading conditions for many, has not been driven by government regulation alone. SMEs are not currently mandated to have a sustainability strategy; businesses have taken the initiative to drive change. They want to do their part in tackling climate change because it is important to them, their customers, and their colleagues.
“Our sector has a duty to help SMEs by providing clarity and guidance around waste legislation. Working together – with the waste industry and across the supply chain – will be crucial for SMEs going forward to reduce waste and recycle more. As will stable legislation, which will give businesses confidence to invest further in sustainability.”
To read Biffa’s latest SME Sustainability Survey report click here.
To find out more about the Simpler Recycling regulations click here.
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