How to leverage the right technology to make your business more environmentally friendly.
Enhancing sustainability practices is now a core part of how modern SMEs plan strategy, growth and long-term success. By leveraging green technologies to reduce costs and boost efficiency, you too can thrive like Brandauer.
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Aligning their values by adopting sustainable practices and innovative tech solutions could help SMEs gain a competitive edge and reap economic benefits.
To succeed, they need to stay alert and adapt to the changing preferences of their customers, who are increasingly aware of their environmental impact.
In the West Midlands, SMEs are increasingly recognising the importance of leveraging technology to enhance their environmental impact. While many have taken some positive steps, SMEs can go further by taking advantage of regional funding mechanisms and other support to invest in technology to propel them towards a more sustainable and efficient future.
Cost, availability of information, and competing priorities.
Cost
Economic conditions are challenging. Some 45% of UK SMEs have cited prohibitive cost as the main barrier to implementing sustainability measures. To address this challenge means investing in technology solutions such as renewable, energy-efficient and eco-friendly initiatives.
According to NatWest’s quarterly Sustainable Business Tracker, SMEs are working hard to find efficiencies in 2024 and “that may mean sustainability initiatives slide down the priority list for some, but investments in energy efficiency will make even more sense for others”.
The information gap
SMEs often lack the expertise to implement and maintain green technologies effectively, which can lead to inefficiencies and higher costs in the long term. Environmental regulations add another layer of complexity, as staying up to date requires continuous learning and adaptation.
The opportunity for training, resources and support is a vital tool that could enable SMEs to improve their environmental practices. Gaining access to funding, grants and additional support to implement and maintain tech solutions to reduce their environmental impact is a key challenge.
Competing priorities
Many SMEs find they simply lack time to set up a plan or understand their options even if they are keen on becoming more sustainable. The need to invest in digital technology for payments, administration and e-commerce – fast-tracked by Covid-19 – arguably took centre stage for many SMEs in the recent past. A survey of 5,000 SMEs by Sage in mid-2022 found that 92% of respondents depended on technology for “business survival” rather than using it to look towards learning, adaptation and further development such as eco-friendly technologies.
Accessing the right information, funding, and expert help.
Adopt the right tools for the right reasons.
Growing a business and implementing an eco-friendly strategy need not be at odds with each other. On the contrary, research shows that 90% of SMEs want to tackle the issue but are unsure how or where to start to find the right solutions to reduce their environmental impact.
Why?
It is becoming clear that SMEs that invest in advanced technological solutions can not only reduce their environmental footprint, but also benefit from improved economic and operational performance.
Many potential customers nowadays expect to be able to choose a firm that aligns with their own views regarding environmental impact. According to UK Business Climate Hub research, 85% of consumers prefer to buy from a business that focuses on sustainability issues.
If an SME decides to invest in implementing green technological solutions, doing it successfully can be a driver of long-term growth, customer trust, sustainable development, and economic efficiency. And for the firm’s brand reputation, a clear commitment to sustainability may lead to further beneficial partnerships down the line.
How?
No two SMEs will have the same roadmap towards reaching their sustainability goals. But technology solutions essentially boil down to implementing energy-efficient systems and smart resource management. Simple steps can reduce energy consumption and save money. Adoption of digitally controlled renewable energy systems, recycling programmes, green supply chains, sustainable packaging and zero-waste policies can help reach the twin targets of carbon footprint reduction and economic growth.
The result? A modern, forward-looking business well placed to meet the challenges of a changing consumer world with one eye on the regulation of the future.
Brandauer is a Birmingham-based precision metal stamping and tooling firm with around 60 employees.
It leveraged technological investment to implement a comprehensive energy management strategy that not only managed to reduce its carbon footprint, but also boosted its overall business efficiency.
Brandauer’s initiatives included installing an advanced monitoring system, a new compressed air system with smart controls, an upgraded LED lighting system, and replacing hydraulic moulding machines with an electric injection system.
They were able to do this by partnering with local institutions that offered specialist knowledge and support, collaborating with local green tech experts, and using localised resources and funding through the #MakingADifference initiative. These included the Midlands Engine Investment Fund, data analysis from the University of Birmingham, and technical expertise from the Manufacturing Technology Centre (MTC).
Pursuing this strategy helped reduce Brandauer’s energy consumption by 25 per cent within the first year and lower carbon emissions by around 100 tonnes annually. Not only did operational costs fall – with over £50,000 per year saved on energy bills – but production efficiency improved by 15%.
A dedicated “Green Team” oversees ongoing sustainability efforts and has implemented a continuous improvement programme for energy efficiency. Plans include investment in on-site renewable energy generation, and ideas for circular economy practices in their manufacturing process.
Seek local support networks for guidance on sustainable practices
Explore grant opportunities
Conduct energy audits
Leverage local expertise by signing up for #MakingADifference
Don’t neglect to identify your business’s emissions impact
Don’t ignore the growing importance of environmental sustainability
Don’t exclude employee training on sustainable practices from your business plan
Don’t forget to tell your customers, partners and suppliers about what you are doing
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