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Biffa SME sustainability survey report
Entrepreneurial spirit can help shift the dial on sustainability in the UK
Making progress on sustainability is not always simple and not always cost free, however SME UK decision makers are prioritising sustainability more than ever.
UK businesses of all sizes have been experiencing challenging trading conditions over recent years. Economy shrinkage, high inflation and increased interest rates have hit consumer and business spending. Global events have impacted supply chains, which have driven up energy and fuel costs.
Despite these challenges however, the UK’s entrepreneurial spirit has remained strong. As of January 2024, inflation has eased somewhat, business closures in the UK continue to fall with a 14% decline year-on-year, and business births are up 15% year-on-year. One of the contributing factors to these signs of recovery is UK businesses’ ability to adapt and innovate to weather the storm.
Biffa asked 1001 businesses about sustainability
Biffa is the sustainable waste supplier of choice for tens of thousands of businesses of all sizes in communities throughout the UK. Our local teams have seen first-hand the dedication and sacrifice that it takes to succeed through these trading conditions. Although there are some signs of recovery, certain sectors continue to face unique challenges, and the UK is far from out of the woods.
Just short of 70,000 businesses closed between the end of September 2023 and the beginning of January 2024, the majority of those businesses were SMEs. SMEs have a significant impact on the UK economy and are the largest employer accounting for 61% of total employment. They also make a big difference to waste reduction and recycling.
One third of all the mixed recycling volume Biffa processes in a year (including 10 billion plastic items at our Polymer facilities), comes from our SME customers. That represents tens of thousands of businesses taking the time to separate, sort and clean millions of tonnes of materials. This is critical to successful recycling as contaminated materials cannot be recycled. Just one item with remnants of food or liquid still in it has the potential to contaminate the rest of the material in a recycling bin.
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How business decision makers think and feel about sustainability and the circular economy is important. Working together has never been more critical to protect valuable resources, reduce carbon emissions and safeguard the planet for future generations. SMEs are integral to achieving this goal in the UK. That is why each year Biffa funds a survey to better understand their priorities and their approach to planning and measurement.
Our research shows that smaller businesses are stepping up their efforts, despite the challenging trading conditions. Our survey shows that 91% of businesses with 10-249 employees have a formal sustainability strategy either in place or in planning. This progress is not the result of government legislative intervention alone - most SMEs have planned and implemented a sustainability strategy because it is important to them, to their customers, and colleagues. Sustainability rose to the third highest priority for 2024 from the lowest priority in 2023.
The UK government’s waste and resources strategy is set to roll out in the coming months and years. When Simpler Recycling comes into force early in 2025, it will affect all companies in England. Businesses will need to make operational changes and invest in new equipment to ensure their waste and recycling is separated and collected compliantly.
Our research reveals that 42% of SME respondents in England are not aware that the imminent Simpler Recycling scheme will impact their business, with 36% stating it ‘will have no impact on my business’. Further to this, 50% stated they found difficulty sourcing separate food waste collections. This is where industry, government and waste experts can work together to meet those needs.
To support those businesses looking to improve sustainability through their waste management and prepare for Simpler Recycling, Biffa is offering a free waste audit. A local Biffa expert visits your business site and assesses your current approach to waste management and the materials flowing through your business. At the end you'll get a report which summarises the key areas for improvement and some practical actions you can take.
The next five years are going to bring unprecedented change in waste and resource management. Our research shows that UK businesses have the necessary skills and entrepreneurial spirit to adapt to the coming challenges and seize the opportunities to protect valuable materials, increase resource efficiency, and work together to combat climate change.
Biffa surveyed 1001 company decision makers with decision making authority on sustainability/environmental issues, including 552 companies with 10-249 employees. Download the full report.
You can learn more about Biffa's sustainability strategy which focuses on innovative sustainable solutions that promotes a circular economy and reduces environmental impact.