New research by Novuna Business Finance finds that 89 percent of small businesses would check the sustainability credentials of a business in some way before deciding whether to partner with them.
It comes as no surprise as businesses worldwide are recognising the many benefits of embedding business sustainability and purpose in their organisations. Some of these benefits include meeting customer demand and increasing trust and loyalty.
Additionally, attracting investors and new talented team members. Not to mention, building a stronger workplace culture whereby employees better push initiatives that have a positive impact on the planet and society.
Who are Novuna Business Finance?
Novuna Business Finance works with its customers to help them succeed. They provide small to medium enterprises (SMEs) and big corporate multinationals with innovative finance solutions. They pioneer sustainability and are a leading advocate for zero-emission vehicles.
Their market-leading fleet decarbonisation solutions are driving the transition to electric vehicles, delivering environmental and cost advantages for their customers. Their green bond proceeds are also directing the flow of finance to sectors that are working to limit greenhouse gas emissions.
The report findings
More than 1000 small business leaders were surveyed for the Small Business Sustainability Report 2023. The report also shared that 76 percent of small organisations said they intended to ‘green’ their supply chain in 2022. Additionally, 58 percent of small businesses would look for information to confirm a supplier’s sustainability efforts, such as official accreditation, listings, and certifications.
However, 64 percent of leaders of bigger businesses with up to 250 team members were more likely to look for official accreditation versus 53 percent of businesses with less than 100 employees. When asked about assessing a company’s green practices and policies on an organisation’s website, 34 percent of small businesses said they would look into these.
Another 31 percent said they would analyse mission statements and reports which outline sustainability aims. Approximately 28 percent of the participants said they would ask representatives about the company’s attitude to sustainability as part of the process to determine whether or not to partner with them.
When asked about a cursory search, 35 percent of participants said they would carry out one on the business both on social media and the internet to seek out other opinions on the company’s eco credentials. Another 22 per cent said they would request close contacts of the business to determine a partner’s reputation as an environmentally friendly business.
Summary – what does this mean?
After reading the findings from the research, it poses the question: what exactly does all of this mean? It’s a positive sign that small businesses are recognising the power they hold in helping us to secure a greener globe. In addition, sustainability is being taken seriously by businesses big and small across the world.
Whilst small businesses generally have less available funds and resources, they know they need to act urgently. They are not simply taking action by improving their operations but assessing their entire supply chain to partner with like-minded businesses who too seek positive change.
