These days, you can’t move for companies proudly declaring how sustainable they are. Businesses are scrambling to become ESG compliant, B Corp-certified, and net zero. It’s the business world’s new symbol of success.
Going green matters. We all want cleaner air, less waste, and a future that looks a little brighter. But for businesses, especially smaller ones, the road to sustainability often involves a long check list, plenty of paperwork, and additional costs that can really add up.
Large companies are leading the way, with the resources to invest in renewable energy, electric vehicles, and carbon-tracking software. For these companies demonstrating environmental responsibility is good for investors, customers, and reputation.
But once they’ve made those major commitments, they often expect their suppliers to follow suit. That’s where things get complicated. If a major corporation has committed to reaching net zero by 2030, they’ll want proof that their suppliers are doing their bit too. Smaller companies are increasingly being asked for green credentials, from the sourcing of their products to how much waste they produce, and what steps they’re taking to cut emissions.
For a small business, meeting these expectations is a big ask. They don’t have sustainability departments or spare cash for consultants. Even something positive like B Corp certification can feel overwhelming. Although it is a fantastic scheme in principle, it’s also detailed, time-consuming, and expensive. For businesses already grappling with rising energy bills and wage pressures, an extra layer of compliance can shift the balance from manageable to unmanageable.
For larger firms, the initial expense of going green can typically be absorbed, with potential payoffs down the line in savings or reputational wins. Smaller businesses, however, run on tighter margins. Being asked to buy more sustainable (and often pricier) materials, or switch suppliers, can chip away at the limited cushion they have. In some cases, it could even push them towards insolvency – not because they’re failing at what they do, but because they’re struggling to keep up with the green agenda set by bigger players.
And this pressure is only set to increase. Regulators are tightening reporting requirements, banks are starting to ask about sustainability credentials before lending, and customers are becoming more switched-on about whether a business is genuinely sustainable or just “greenwashing.”
For smaller businesses, the future costs are likely to come from three directions: supply chain pressure, new compliance and reporting requirements, and tighter access to finance. In the short term, this could put even more strain on already narrow margins. In the long term, the businesses that adapt early and find cost-effective ways to reduce emissions will be best positioned to survive. The challenge is that not every small business has the breathing space to invest now.
There are practical steps smaller firms can take to keep up without breaking the bank:
- Start small – switching to LED lighting, reduce unnecessary printing, or moving to a renewable energy supplier.
- Talk to customers – being open about what you are doing (and where you plan to improve) often makes a bigger impact than staying silent.
- Collaborate – partnering with other businesses to share knowledge or spread the costs.
- Measure what matters – even a simple spreadsheet tracking energy or waste can show progress.
- Go for quick wins – make changes that save both money and emissions, like cutting waste or boosting efficiency.
None of these will single-handedly earn you a sustainability award, but they demonstrate commitment, build credibility, and, most importantly, don’t require selling off the office furniture to fund.
For me, the most important thing in all of this is seeing smaller businesses thrive. Working in Restructuring and Insolvency, I witness first hand how tough it is for them and how much determination it takes to keep going. When a small business not only survives but actually grows in a difficult trading environment, like the one we’ve seen over the past five years, it’s truly something worth celebrating. Sustainability should mean caring for the planet and creating conditions where small businesses can keep contributing to our communities. Finding that balance is what really matters.
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