ESG action downgraded as a priority by SMEs

By Azets

11 May 2022

●        71% of SMEs are not currently acting to reduce their carbon emissions

●        85% of SMEs are not currently measuring their carbon footprint

 Almost three quarters (71%) of SME businesses are not currently acting to reduce their carbon emissions, as Environmental, Social, and Governance (ESG) performance is downgraded and digitalisation, employee wellbeing, cost inflation, and recruitment take priority.

The latest Azets SME Barometer Spring 2022, which surveyed 1,093 SMEs from all sectors in the UK, Denmark, Finland, Norway, and Sweden, reveals ESG is on most company radars but specific action lacks urgency, with sharper focus on people, technology, and cost amid economic turbulence.

Over half of SMEs agree they have a good understanding of what ESG means (57%) and have the skills and competencies in the business to address it (52%).

However, 53% do not think ESG will have a big impact on their business in the next two years.

On reducing carbon emissions specifically, 71% are not currently acting and 85% are not currently measuring the carbon footprint of their business.

Meanwhile, over half (54%) of SMEs say they will increase digitalisation in the year ahead, whilst employee wellbeing has risen to be SMEs’ second highest priority, after securing their financial health.

Cost inflation and recruitment are SMEs’ biggest day-to-day challenges, with knock-on effects on cash flow and the time spent on administrative work.

Almost two-thirds (64%) of SMEs are struggling to recruit talent with the right skills.

All of this leaves little bandwidth and urgency for ESG.

Graham Rigby, Joint Regional Managing Partner at Azets in the North West, said: “The SME Barometer shows that many businesses want to focus on ESG and sustainability to a far greater extent than before. But it also highlights an alarming number that do not keep climate accounts today. There is a clear focus on digitalisation, cyber security, wellbeing, and costs, leading to a downgrading of ESG as a priority. This is the result of instability in the market forcing companies to prioritise differently than just a year ago.

“For some SMEs rooted in their local community, ESG appears as common sense. For others it poses challenges in terms of cost and the expertise and resources required to implement it. Given current pressures on SMEs, a basic challenge can simply be finding the time to bring ESG to the fore when there are more pressing matters to deal with.

“However, ESG represents a great potential and opportunity for SMEs. With legislation coming down the track for EU SMEs on sustainable products, and funding likely to be harder to come by as banks increasingly look at sustainability and ESG policies as a condition of lending, ESG is set to become an increasingly important theme. Businesses should be thinking ahead and taking specialist advice.”

ESG will be a key theme at the inaugural Global SME Leaders Growth Conference on 12 May 2022, which welcomes SME leaders to explore current challenges and opportunities. The Global SME Leaders Growth Conference will be hosted by Azets Group CEO Chris Horne and MD Azets Finland Ulla Nikkanen, with guest keynote speakers from Wired Magazine, The Gender Index, Bremont, and Digital Workplace. Register to join here.

Latest news

1

PM+M welcomes ten new apprentices for 2025 intake Lucy Field, Kate Walsh, Ellie Fisher, Zainab Aswat, Reece Jones, Aisha Bibi Patel, Finley Vila, Uzair Zariwala, Richard Prest, and Charlie Harrison

PM+M welcomes ten new apprentices for 2025 intake

11 Sep 2025

2

ROCCIA strengthens commercial division with senior appointment Andrew Grove

ROCCIA strengthens commercial division with senior appointment

11 Sep 2025

3

Final call for investors: Rossendale community solar project must hit target by November Gary McEwan managing director of Interfloor

Final call for investors: Rossendale community solar project must hit target by November

10 Sep 2025

4

Lancashire Combined County Authority unveil plan to Get Lancashire Working Lancashire Combined Authority

Lancashire Combined County Authority unveil plan to Get Lancashire Working

10 Sep 2025

5

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration Collaboration between BAE Systems FalconWorks and Lockheed Martin Skunk Works

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration

09 Sep 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

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

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

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

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

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

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

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

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

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