Address ESG or lose funding, warns SME accounting expert

By Azets

30 Nov 2021

graham-rigby.jpg

An SME accounting expert with UK Top 10 firm Azets, the largest regional accountancy firm and business advisor to SMEs, is urging businesses to address Environmental, Social, and Governance (ESG) policies or risk losing their funding line.

Graham Rigby, office managing partner at Azets in Manchester says climate change and ESG is already starting to have a significant impact on funding decisions and those too focused on the short-term could be putting the future of their businesses at risk.

He warns that lenders, suppliers, customers, and employees will demand a roadmap to a net zero strategy going forward and failure to address ESG could be catastrophic.

The warning follows a poll by Azets of 235 SME business leaders, which revealed a significant number of SMEs have not reviewed their business model in the past year, and just one in ten believe ESG will have an effect on their long-term plans.

According to the poll, 63 per cent of businesses have reviewed their business model in the past 12 months, whilst almost a quarter of SMEs (23 per cent) have not. Just 10 per cent of businesses say climate change and ESG is most likely to have an effect on their business model moving forward, with staffing (34 per cent), economic recovery (27 per cent) and digitisation and technology (19 per cent) currently understood to be the most important factors.

Graham Rigby said: “In the midst of a global pandemic, a quarter of businesses having not reviewed their business model for more than a year is an alarming figure. We would expect more frequent forecasting to make sure business models remain fit for purpose, particularly as the real impact of Brexit and Covid-19 may not yet have been felt, and with the growing awareness and importance of sustainability.

“A sharper focus on the short-term is perhaps to be expected as SMEs focus on immediate recovery and growth, with ongoing concerns over staffing levels, economic instability, and digitisation an ever-present issue. However, with funding likely to be harder to come by and banks increasingly looking at sustainability and ESG policies as a condition of lending, businesses should also be thinking ahead.”

Graham Rigby is urging businesses in the North West to take more of a proactive approach to ESG as part of regular business model reviews.

Graham Rigby concluded: “ESG will keep growing in significance and will impact decision making by lenders, suppliers, customers, and employees. We urge SME businesses in the region to seek professional advice to ensure they are tackling short-term challenges and planning appropriately for long-term ESG requirements.”

Latest news

1

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 2025

2

First speakers confirmed for Lancashire Business Day Dave Walker with Richard Slater at Lancashire Business Day

First speakers confirmed for Lancashire Business Day

08 Oct 2025

3

Hemmings steps down as PNE chairman as hunt begins for new investors Craig Hemmings

Hemmings steps down as PNE chairman as hunt begins for new investors

08 Oct 2025

4

Chamber calls for three council county Lancashire County Council County Hall

Chamber calls for three council county

08 Oct 2025

5

Victorian Plumbing reports strong financial performance Victorian Plumbing Leyland

Victorian Plumbing reports strong financial performance

07 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Empowering Franchise Growth in the North West
Empowering Franchise Growth in the North West event
LBV Hub Seminars
09 Oct 2025 - 09 Oct 2025

Empowering Franchise Growth in the North West

Forbes Solicitors, Sceptre Way, Walton Summit Centre, PR5 6AW, PR6 6AW

08:00 - 10:00

Empowering franchise growth in the North West
TFA Event - Empowering Franchise Growth.jpg.jpg
LBV Hub Seminars
09 Oct 2025 - 09 Oct 2025

Empowering franchise growth in the North West

Forbes Solicitors Sceptre Way Walton Summit Centre , Preston, PR5 6AW

08:00 - 10:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin