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Green plans on hold for frugal firms

Oct 12 2010

SMEs are shying away from going green in favour of consolidation

A focus on consolidation has stalled businesses’ efforts to improve their green credentials.

According to a study of 539 small businesses by bank Lloyds TSB Commercial, only 38 per cent of businesses have taken steps to analyse environmental risks to their company.

More than half of respondents (51 per cent) cite cost as the principle barrier to pursuing environmental initiatives, despite 48 per cent believing that going green would result in a positive reaction from customers.

Other reasons include a lack of understanding of the risks and opportunities (19 per cent), a perception that customers are not interested and a belief that their business doesn’t face any increased risks (16 per cent).

Some 29 per cent say they are putting environmental improvement plans on hold until they have recovered from the impact of the recession.

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