A survey of businesses in London is suggesting that sustainability and environmental issues are slipping down the priority list of small and medium sized enterprises (SMEs).

The survey was carried out earlier this year by business improvement district Better Bankside among its 900 members in the bankside area of the capital. Three in five of those surveyed are SMEs.

When asked to rank their top priorities sustainability and the environment achieved only sixth place, down from third spot when Better Bankside asked members the same question in 2022.

The survey also asked businesses to detail the main challenges they face, with more than half citing economic uncertainty and rising costs as chief concerns.

“It seems sustainability’s fall may be related to the sharp focus required for issues relating to business survival,” said Better Bankside, which notes that other recent surveys have also shown a dip in sustainability as a priority for SMEs.

"Our latest Member Survey is further evidence that sustainability is becoming more entrenched as an out of reach deliverable for SMEs,” said Better Bankside chief executive Nicole Gordon.

“When many are fighting for survival, its de-prioritisation is understandable but far from ideal – given not only the government’s net zero targets, but also the fact that operating in a more sustainable way will save SMEs money.”

She added: “We are calling on the government to reframe the discussion from education on data, decarbonisation and reporting to investment in small-scale, high-impact SME sustainability support.

“Incentives need to be urgently introduced, such as sustainability-linked business rates relief, and it is time for a national sustainability toolkit for SMEs to be developed.

“With the right support, SMEs can play a far greater role in meeting the UK’s net zero ambitions while strengthening their own competitiveness in a challenging economic climate.”

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