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

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London. The Rt Hon Jonathan Reynolds, the Rt Hon Christopher Luxon and the Rt Hon Steve Reed (L-R Front Row) David Hammond, and Daniel Knowles

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London.

30 Apr 2025

2

Northstone secures full planning permission for 50 new homes in Edenfield Edenfield housing development

Northstone secures full planning permission for 50 new homes in Edenfield

29 Apr 2025

3

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens Dovestone Gardens launch

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens

29 Apr 2025

4

PHX Training welcomes new business leader to drive learner success Louise Kirby

PHX Training welcomes new business leader to drive learner success

29 Apr 2025

5

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire Lidl

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire

29 Apr 2025

Pc Prestonmacan Gif980x120 March
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
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

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

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

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 Lbv121 Online Graphic
Subscribe now

Weekly news bulletin