The proportion of businesses taking measures to conserve water is at its highest level in three years, according to the latest bi-annual Uisce Éireann SME Sustainability Sentiment Survey.
More than seven SMEs in 10 say they are conserving water – a 5% increase since 2022. There has also been a drop of 10% of respondents over the same period in the number who say it is ‘not on their radar’, from 31% in 2022 to 28% in Q2 ’24.
The top three areas where SMEs are most actively tackling environmental issues are reducing their energy use, waste and plastics.
SUPPORTS AND GRANTS
When surveyed on barriers to investing in sustainable practices, cost concerns remain the primary obstacle for almost 70% of SMEs. However, businesses citing a lack of information or Government supports has fallen considerably from 57% in 2023 to 43% in Q2 2024, indicating a desire to learn more about sustainability grants and supports, such as the Government’s Climate Toolkit 4 Business, an online tool providing SMEs with a pathway toward sustainable investment and practices.
EMPLOYEE AND CLIENT APPETITE FOR SUSTAINABILITY
While seven in 10 SMEs responded that cost savings is the primary driver in decision making on sustainable investment, employees, customers and clients have shown a growing desire for businesses to remain active in their sustainability efforts.
45% of SMEs surveyed see customer appetite as an influential driver of decision-making on sustainable investments, up from 31% Q2 2022. SME employees have shown a keen interest in their employers investing in sustainable measures, with over one in four SMEs citing employee interest as a driver in decision making, almost 25% up since the second quarter of 2023. This is the highest level to date since the survey commenced.
PLANNED SUSTAINABLE INVESTMENT
While Uisce Éireann’s survey revealed that 9 in 10 businesses still intend to maintain or increase their investment in sustainable practices in the coming year, overall there has been a slowdown in the number of businesses planning sustainability investments, falling from 20% in 2023 to 15% in Q2 2024. Similarly the number of businesses who increased their investment in the past 12 months, at 11%, was down from 20% in 2023. Overall, 75% of companies surveyed intend to maintain levels of investment, with 15% planning to increase it.
Despite the significant number of SMEs maintaining their investments, only 11% have accessed external expertise in the past 12 months. This trend has been consistent throughout the past two years. However, the proportion is higher among larger businesses, at 27%.
COSTS A SIGNIFICANT FACTOR
David Broderick, Director of the Small Firms Association (SFA), said: “Ireland’s small businesses are taking the issue of water conservation more seriously. The five percent increase in SME’s stating they are implementing water preservation is testament to the sector’s commitment to innovation and environmental sustainability.
“However, it’s worth noting that small businesses are still operating in a high inflation economy with 68% percent of SMEs claiming that costs remain a primary barrier to investment. The SFA’s recent Cost of Business Survey, showed that business costs increased by 16% compared to last year, with one in three businesses stating a loss of liquidity within six months.”
INITIATIVES
Uisce Éireann offers a suite of easy-to-access initiatives, helping SMEs reduce costs and become more sustainable when it comes to their use of water, including its world-first Water Stewardship Programme and Annual Membership Scheme.
