UK SMEs urgently need decarbonisation support

London Business Improvement District, Better Bankside, has secured a further £252,000 in funding from the UK Shared Prosperity Fund (UKSPF), to continue its Southwark Climate Collective (SCC) programme – providing targeted sustainability and decarbonisation support to Southwark SMEs. The funding acknowledges the success of the project so far, in responding to the urgent need for a scalable model of support for SMEs to become more sustainable. 

According to the UN backed SME Climate Hub, SMEs need urgent support to decarbonise their business operations, hampered by a lack of skills and knowledge (63%), funding (48%) and time (40%). SMEs are vital for achieving London’s net zero target, accounting for over 90% of the business population and approximately 40% of the UK’s non domestic emissions. With economic headwinds putting additional financial pressure on SMEs, more support than ever is needed to overcome the barriers to SME business decarbonisation. 

Launched in 2023, Better Bankside's Southwark Climate Collective (SCC) programme has equipped more than 140 SMEs with the tools, skills and technical support to cut their emissions. The programme, led by Better Bankside, and supported by partner organisations (including Southwark Council,) focuses on overcoming significant barriers faced by SMEs in decarbonisation, such as limited resources, knowledge and capital investment – recognising the need for a tailored solution, and collaborating with a network of partners to deliver against four key SME decarbonisation streams; waste, freight, energy and supply chains. The £252,000 in new funding from the UK Shared Prosperity Fund (UKSPF), will allow the SCC programme to continue to build capacity (through bespoke training) within SMEs, as well as providing targeted technical support to assist businesses to implement workable decarbonisation plans. Better Bankside's overall aim for the project is to find a proven, scalable model of support for SMEs that can be rolled out across London, backing the objectives of the Mayor of London’s growth and net zero strategy.

Nicole Gordon, CEO of Better Bankside, commented: ‘The Southwark Climate Collective has demonstrated that SMEs are eager to act on climate change when given the right support – and with SMEs making up 90% of London's business population, investment in this area is critical to achieving the capital's net zero targets. Key to SCC's success is its design as a scalable model of business support that brings together local expertise, public and private partners, and community networks to drive climate action from the ground up. It shows the power of Better Bankside and its local network, to deliver replicable solutions to issues that can serve the rest of London and beyond. Our ambition to energise businesses into climate action is more important than ever as we close in on the capital's climate deadline.’

With initial UKSPF funding of £653,000, the SCC programme has supported 140 Southwark SMEs with bespoke audits, training and action plans across four critical decarbonisation streams: energy, freight, waste and supply chains. Importantly, each SCC stream targeted practical operational areas where SMEs could realistically implement meaningful changes.