Description
Five years on from COP26 in Glasgow, it is timely to reflect on progress since that event. In particular, it is useful to refresh our understanding of where the UK’s large and diverse population of 5.5 million smaller businesses are on their transition journey, particularly those in higher-emitting sectors, so that we and others can support them in progressing further and faster.
This British Business Bank-authored report explores smaller businesses’ understanding of and progress towards net-zero, based on a sample of 1,783 SMEs surveyed as part of the 2025 UK Net Zero Business Census. This complements the main Net Zero Census report findings by providing more information on the specific barriers and perceived benefits of moving to net-zero amongst smaller businesses, which make up 99.8% of the UK business population.
Key findings:
- SME greenhouse gas (GHG) emissions are concentrated in a few carbon-intensive sectors: the 14% of UK SMEs that operate in these sectors emit around 84% of total UK SME emissions.
- Transitioning to net-zero is a low priority for most SMEs over the next 12 months (59%), including most of those in high-emitting sectors.
- Placing a low priority on net-zero has not, however, deterred most SMEs from taking at least one action towards it, and SMEs have already taken on average three of the 14 actions covered in the Net Zero Census.
- SMEs generally perceive that there is at least one benefit to the organization of progressing towards net-zero.
- The perception of barriers to net-zero progress is more widespread amongst SMEs than the perception of benefits.
