But most still in denial about their environmental impact
Small agricultural businesses are waking up to their green responsibilities, with the number carrying out environmental assessments doubling in just two years.
The biennial SME-nvironment survey by environmental guidance website NetRegs.gov.uk reveals that 32% of small and medium-sized businesses (SMEs) in farming and agriculture have formally assessed the impact of their business on the environment, up from 16% in 2007. 33% have taken steps to cut down on water and energy use, up from 18%. Over half of SMEs in agriculture now have measures in place to reduce the harm they do to the environment – putting farming below the UK average but indicating that the sector is making strides in reducing its impact.
However, the recession now seems to be taking its toll on farmers’ green business practices, with just one in five planning to invest in improving their environmental performance over the next year. Despite government efforts to improve the UK’s green business credentials through formal environmental management systems (EMS), NetRegs’ study of 7,000 SMEs found a 75% drop in the number of agricultural businesses with such a system in place. Agriculture is the sector most likely to argue that an EMS or environmental policy is ’of no use’ to their business, voiced by a staggering 88% of those questioned, despite evidence from some farmers that this has reduced operating costs and improved customer relationships.
Most concerning for agriculture is the small proportion of respondents able to recognise key regulations applicable to their business. Just 17% are aware of environmental permits, required of many farmers operating in England and Wales, and 8% are aware of waste management licensing – despite 33% volunteering that they store waste on their premises. It is more than two years since the Environment Agency extended the deadline for Agricultural Waste Exemption certificates, but with this low awareness of regulations the NetRegs study suggests that many in the sector are still failing to keep up with changing laws.
To highlight the gulf between perception and reality of environmental harm, just 9% of agricultural businesses questioned by NetRegs thought their business undertook activities which harm the environment; the actual figure was far higher, with 68% storing chemicals, fuel or oils.
Debbie Chatting, Marketing Strategy Manager at NetRegs.gov.uk, comments: "It’s good to see improvement in farmers’ green business activities, but efforts are clearly starting to fall back in many areas. Our survey has unearthed a level of denial among some agricultural businesses who still don’t acknowledge the harm that they can do to the environment, nor recognise the business opportunity it presents to them. SMEs make up 99% of British business so their cumulative impact is huge; they simply cannot be apathetic or maintain indifference."
Falling awareness levels are a likely by-product of recession-driven cuts. Fewer agricultural businesses now have a nominated individual with environmental responsibilities or are following an environmental improvement programme, compared with two years ago, suggesting that the environment has slipped down the priority list of the UK’s 4.7 million SMEs.
NetRegs is now campaigning for all businesses to nominate a ’Green Ambassador’ responsible for reducing the firm’s effect on the environment.
Debbie Chatting explains: "Many companies in the supply chain now include specific environmental questions in their tender forms, so by building measures into your business plan, training your staff and taking an environmentally responsible stance throughout your business, you will reap the rewards of winning more work. And you’ll comply with the law.
She continues: "NetRegs has developed a simple online self-assessment checklist which is free and can help identify green measures that will save most businesses real cash. In fact businesses that receive the NetRegs’ free regular updates save around £2,600 a year*. Environment, profit and staff motivation go hand in hand."
SMEs ignore green legislation at their commercial peril. The Environment Agency’s most recent Spotlight report revealed that half of all serious industrial pollution incidents are caused by SMEs, with the average environmental fine now exceeding £10,000.
NetRegs.gov.uk is delivered in partnership with the Environment Agency and other regulators to provide free guidance to SMEs on how to comply with environmental legislation. The website explains exactly what businesses need to do to improve their green credentials, avoid fines and save money through greener business practices.