Nearly half (42%) of SMEs in England don’t know that upcoming Simpler Recycling legislation will impact their business, according to a new survey from waste management experts Biffa.
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. For many, it will be the first time doing so.
That said, 58% 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%), Digital Waste Tracking (52%) and the existing Plastic Packaging Tax (51%) having the greatest impact.
It comes as SMEs report sustainability being a greater business priority in 2024 compared to last year – the third highest (36%) following cost efficiency (45%) and revenue growth (39%). When Biffa issued a similar survey in 2023, sustainability was the lowest priority for small businesses.
What’s more, four in five (80%) see waste management and recycling as important to sustainability, with three in 10 (29%) saying the two are ‘very important’.
They prevalently measure and report on the reduction of general waste (67%) in their efforts to be more sustainable – a significant rise on 39% last year. SMEs are also vigilant on the recyclability of products and packaging they purchase or produce (60%). Perceptions from customers or employees also matter, as over half (56%) track this compared to just a fifth (22%) last year.
In fact, nine in 10 (91%) SMEs have a formal sustainability strategy either in place, planned or in progress. Four in five (82%) also say their business is focused on being part of Britain’s circular economy – compared to just half (52%) in 2023 – but, crucially, nearly all (98%) say that more support is needed for their business to be sustainable.
Financial incentives (42%) are the type of support SMEs need most in order to be sustainable. That’s understandable given that – as in 2023 – the cost (45%) of making changes is their biggest barrier to sustainability, followed by increased expenses of products and or services (38%). Monetary concerns are compounded by a lack of clarity on sustainability metrics (30%).
Two-fifths (42%) 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%), product life cycle, and circular supply chain analysis (37%).
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. We’re committed to supporting businesses through this period of policy change, so their waste management remains compliant and cost-effective.
“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.”
For more information on SME attitudes towards the circular economy, sustainability and recycling, visit: https://www.biffa.co.uk/biffa-insights/Biffa-SME-sustainability-survey-report