SUPPORTING BUSINESSES ON THEIR JOURNEY TO NET ZERO

businesses that are creating worldbeating green-technologies, investing in low-carbon infrastructure, or helping to make our energy supply lower-carbon. It’s also why we’re helping the region’s housebuilders and housing associations to build more sustainably, and households across the North West to retrofit their homes to lower their energy needs and reduce our reliance on carbon.

What are SME’s saying to you about moving towards Net Zero?

One of the great benefits of my job is being able to meet and hear from businesses across the region and it’s clear that while many see the opportunities that Net Zero presents, SMEs face a degree of uncertainty and challenges to meet their sustainability goals.

We chatted to Liz Delahaye, North West Regional Development Director at Lloyds Bank about her role, and why Lloyds Bank is supporting SMEs on their journey to Net Zero.

What

is your role?

I’ve recently taken on the role of Regional Development Director for the North West at Lloyds Bank. This is a relatively new role to ensure we deliver our core purpose – to Help Britain Prosper – in ways that have most impact in this region. So I get to bring together different parts of the bank with the people and organisations that we need to partner with to create positive change. That includes some of the region’s business leaders, combined and local authorities, housing groups, academics, cultural institutions and others to look at new ideas and ways to use finance to stimulate investment and economic growth, while creating thriving communities where people want to live, work and stay.

Why is Net Zero important?

Achieving Net Zero by decarbonising our industries and households is critical to securing a more sustainable future for everyone. At Lloyds Bank, we recognise that we have a really important part to play to help deliver this transition. We’ve set some ambitious targets to support the change, targeting to be Net Zero for the activities we finance by 2050 or sooner, with our own operations being Net Zero by 2030.

But Net Zero also presents huge growth opportunities for the nation and this region. That’s why we’re backing local

So Net Zero has a lot of benefits – from helping lower people’s energy bills and tackling air pollution, through to creating new jobs, industries and economic growth for the region.

What is driving SMEs to make their businesses more sustainable?

In my experience, many small and medium sized businesses (SMEs) have a really clear purpose which often includes a desire to have a positive impact on their communities and the planet. For some this is driven by employees themselves, who are often more engaged and productive when they believe in the enviromental responsibility of their business.

Many SMEs are also responding to the demands of their markets as consumers and businesses increasingly seek more sustainable purchasing choices themselves or new markets open to deliver products or services in a more sustainable way. Of course, given that one of the biggest challenges SMEs are experiencing at the moment is rising costs, it’s perhaps unsurprising that many are making their businesses more sustainable to reduce their energy bills or the amount of raw materials they use.

Whatever the motive, it’s clear there are many reasons why it makes good commercial sense for businesses of all sizes to become more sustainable.

In our recent Net Zero Monitor, which polled businesses across the country on this issue, small business leaders told us they face challenges ranging from small day-today issues such as encouraging staff to recycle while at work, to more complex decisions which need to be made around their operations. Many talked about the high costs of making their business carbon neutral and finding it difficult to know how to reduce emissions outside of their own operations. Having confidence that the expenditure will have a measurable impact and struggling to justify expenditure with a low return on investment also featured.

Despite these challenges, SMEs are determined to reach the Net Zero milestone. According to our research, across the UK currently 69% are already at Net Zero or have a plan in place to reach it. In the North West, this is even higher at 73%. This is fantastic progress, but there’s still more work to be done.

The external environment has a big impact on how businesses prioritise their sustainability efforts. SMEs are experiencing pressure from many directions including inflation and the wider economic outlook.

However, sustainability-led decision making and action to reduce a business’ carbon footprint can often ease the burden of other everyday challenges. For instance, becoming more energy efficient and switching to renewable energy sources can insulate a business from the effect of rising fuel prices. Also, consumers and businesses are increasingly making purchasing decisions based on a business’s approach to sustainability - opening up opportunities to reach new customers and stand out from competitors.

What do you say to an SME business that’s not where they want to be on their Net Zero journey?

Firstly, you’re not alone. There’s a growing impetus when it comes to accelerating the Net Zero journey for SMEs. 90% of SMEs in the North West say that sustainability considerations are important to them - and for 82%, sustainability considerations have become more important in the last year. The growing awareness around sustainability issues is driving the topic up the priority list for SMEs.

Secondly, look for quick wins. For example, what actions can you take now such as switching energy provider or increased recycling? Then start to think about what longer term goals could work for your business such as shifting product design and exploring the sustainability of your supply chain?

Not every initiative will prove to be a success but taking quick actions are key when you begin to plan your Net Zero journey –and you can find lots of useful tools and guidance to help you along the way on the Lloyds Bank website.

As you look to do more, the next step is to combine these actions into a longer-term strategy and to plan and dedicate time and energy to meet these goals. A quarter of the respondents to our Net Zero Monitor say sustainability decision-making is now a core part of their day-to-day role, and just under half say they are one of several individuals in the business evaluating sustainability. This growing confidence, action and decision-making increasingly means that sustainability measures are incorporated into core business planning and activity on an ongoing basis.

What help is available?

Thankfully, there is lots of help available for SMEs – but we also know from our research that only half of small business leaders have actually used some of the resources available.

along the path to Net Zero are part of collaborative eco-systems with other companies.

As the number of SMEs reaching Net Zero increases, we see more and more businesses inspiring change in others. It is crucial to learn from the experiences of this group of businesses – who we are calling the ‘Heroes of Net Zero’. Their successes provide inspiration and practical problem solving for those following them along the path. Having been through the behaviour change needed to reach Net Zero themselves, they are now advocating for it and are proving themselves to be powerful change agents.

We’re trying to make it as easy as possible for the businesses we partner with to reach Net Zero, so we have a dedicated ‘Sustainability hub’ on the Lloyds Bank Business website. It has lots of information and resources to help businesses reduce their overall costs and energy usage with new Clean Growth Financing opportunities and green tools.

I also know how important it is for businesses to support one another and I’ve been really inspired by some of the examples of our customers joining forces to help each other reduce their carbon footprint. The journey to Net Zero can’t happen unless businesses come together and create greater change collectively across their sector, region or supply chain. Creating these networks means that specific problems can be shared, explored and lessons can be learnt around how to overcome challenges - we know that many SMEs who are further

I’m therefore delighted to announce that Lloyds Bank is partnering with 2030hub to create a new ‘Sustainable Business Accelerator’ programme to encourage and nurture a growing movement of local small and medium-sized businesses ‘Net Zero Heroes’ from across the Liverpool City Region.

Each selected business will receive - at no cost - three months of fully funded training, mentoring and on-site guidance that will result in a comprehensive carbon footprint management plan. Lloyds Bank will provide guidance and expertise with access to specialised financial services and resources. Applications are now open to businesses from across all sectors which will result in 10 businesses being selected to join the cohort programme. You can find out more about this on the 2030hub website.

You can read more about the findings from our Net Zero Monitor and information on making your business more sustainable at the Lloyds Bank Sustainability Hub.

Property Restoration Specialist Invests In Electric Vehicles To Slash Emissions

Forshaw Group, based in Liverpool for almost 75 years, works closely with insurance companies to repair properties damaged by fire and floods.

With the support of Lloyds Bank, Forshaw’s invested in five new electric vehicles (EVs) –making up 20% of its total fleet – as it focuses on introducing more sustainable practices alongside its continuing organic expansion.

Maintaining a hybrid model in the short-term, using a blend of traditional vehicles for longer journeys, and electric for shorter, local trips, it will gradually transition its full fleet to EVs. It is also set to install a series of solar panels to generate the power needed to charge the vehicles in-house.

Liam Hanlon, Managing Director of Forshaw Group, said: “Championing sustainability is becoming more and more important for every business in the UK, as the government pushes to reach its net zero targets. We are no exception, and this initiative is a key step in our drive to slash our emissions. The team at Lloyds has been incredibly supportive, helping us make investments that will support business growth over the long term while contributing to our own ESG commitments.”