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

Burnley aircraft firm sees profits soar Safran Nacelles

Burnley aircraft firm sees profits soar

19 Aug 2025

2

Lancashire marina bought by Aquavista Fettlers Wharf Marina

Lancashire marina bought by Aquavista

18 Aug 2025

3

Work starts on new business units at Enterprise Zone Danny Pinkus Cllr Mark Smith and Robert Pinkus at Phase Two Of Enterprise Court

Work starts on new business units at Enterprise Zone

15 Aug 2025

4

Preston City Council helps lift the weight of setting up in business Freya Wood (Female Body Workouts), Mayor of Preston, Cllr Sue Whittam, Becky Platt (FBW) and Nina Cowell, Project Manager at Selnet

Preston City Council helps lift the weight of setting up in business

15 Aug 2025

5

Digital drive helps five companies on one industrial estate to embrace technology for growth Mark Haworth MJH Joinery Paul Bimpson Reverse Engineering Andy Walsh Rustic Tubs Sarah Woodhams Made Smarter Steve Hill Surefit Lee Ellis And Mike Cripps CE Aluminium Systems

Digital drive helps five companies on one industrial estate to embrace technology for growth

15 Aug 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
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

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

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Tri-Site Survey Equipment Showcase
Linkedin Cover.jpg.jpg
LBV Hub Seminars
03 Sep 2025 - 03 Sep 2025

Tri-Site Survey Equipment Showcase

Harewood House , Leeds, LS17 9LG

09:30 - 16:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

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

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 LBV 123 Online Graphic
Subscribe now

Weekly news bulletin