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Climate for SMEs

Climate change is and will continue to affect businesses of all sizes. ICAEW is aiming to cut through the noise by providing tools and resources for small to medium sized businesses to build resilient business models. Here you will find guidance on where to start, how to mitigate the effects of climate change and adapt into the future. The stages outlined below will ask you simply: why, what, how and apply.

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Chris Stark interview
An interview with Chris Stark, Chief Executive of the Climate Change Committee, on the importance of businesses in driving the outcomes of COP26 and beyond.

An interview with Chris Stark

Chris Stark, Chief Executive of the Climate Change Committee, talks about the importance of businesses in driving the outcomes of COP26 and beyond.

Learn more in this report from the CCC

Why is climate change an issue for your business?

Over the past year, what has happened that has affected the ways in which you do business? Many of you will have felt the impacts of flooding, transport systems failing, and supply chain disruption in your organisations. Supplier and customer expectations are also changing; what is your value chain asking of you? Customers are increasingly asking businesses what their green credentials are. We mustn't forget there are huge opportunities that come with considering climate in your business strategy with potential new markets to tap into and attracting talent.

IPCC Atlas
  • Website
  • IPCC
Want to find out more about physical risks? Check out this interactive map provided by the IPCC. This will help visualise regional impacts of climate change showing different temperature scenarios.
A strategic imperative
  • Article
  • ICAEW
Being able to embed climate change and wider sustainability issues into business strategy is essential to future-proof your organization. Read this article to learn more about your role as a chartered accountant in business.
Definitions: can you tell your LCA from your carbon footprint?
  • Article
  • ICAEW
Need help to understand some climate jargon? Reducing and measuring climate impacts involves getting to grips with new terms and methodology. We look at common, related terms and what they actually mean.
What next after COP26?
  • Podcast
  • ICAEW
Want to know more about why climate is a business issue? This podcast explores what happened at COP26 and what it means for business and the accountancy profession.
Green Taxes and Incentives Tracker
  • Website
  • PwC
PwC’s Green Taxes and Incentives Tracker helps you discover climate and carbon-related tax matters where your company operates, covering more than 800 taxes and 600 green incentives in 88 countries and regions around the world that can affect critical business strategies and operations.
Non-financial reporting requirements
  • Hub page
  • ICAEW
Head to ICAEW’s non-financial reporting hub for the latest updates on reporting requirements, standards and regulations affecting your business.

What matters to your organisation?

What do you want to achieve in the short and long term? Are you looking to stay ahead of regulatory changes, keeping up with market demands, looking to adapt to ensure business continuity? It may be useful to undertake a SWOT analysis at this stage to understand what is affecting your business/industry specifically. Be sure to include broader stakeholder perspectives e.g. funders, employees, customers, suppliers, and what their expectations are.

Regulation changes
  • Video
  • ICAEW
New regulatory requirements are developing on non-financial reporting. Although TCFD is not mandatory for SMEs, you may be hit with supply chain pressures to disclose your sustainability practices. Watch a recording from ICAEW’s Climate Summit looking at how to integrating climate disclosures into reporting using the TCFD recommendations.
Journey to Net Zero for SMEs
  • Helpsheets and support
  • The Carbon Trust
The Carbon Trust have created a guide for SMEs explaining what is net zero and what opportunities are there for you to reduce your carbon footprint. This is useful for those right at the beginning of your journey and sets out simple changes you can make across your business.
BEIS SME Climate Hub
  • Hub page
  • BEIS
The SME Climate Hub has a useful tool to filter resources based on your business objectives. Filter through the pillars such as Strategy & Governance and actions on logistics or waste and whether you need help on measuring or reporting. The tool library has resources in the form of webinars, reports, articles and more.
Energy crisis catalysing decarbonisation
  • Article
  • Innovation Forum
With energy prices at an all time high, is now the time to accelerate the shift away from fossil fuels to renewables? Reducing Scope 1 and 2 will lead to significant cost savings.

How do I do this?

You’ve decided what your first steps should be, now find out how to measure your impact, what support is available and training opportunities. It is worth noting that data around emissions is not perfect but is continuously evolving as more data becomes available.

Carbon Trust Emissions Calculator
  • Website
  • The Carbon Trust
Carbon Trust has developed a simple emissions calculator using your last 12 months of data covering fuel consumption, energy consumption and tops up to air conditioning units. This can be a useful tool to get you started.
GHG Protocol Emissions Calculator
  • Website
  • GHG Protocol
For a more advanced calculator, the GHG Protocol uses an Excel tool to input your data and provide an estimate of emissions. This does not include Scope 3 but there is a supplementary tool if you wish to use it.
Resilience Self Assessment Tool
  • Website
  • Resilience First
Resilience First have developed a tool to help you understand your current organisational resilience status, identifying areas of strength and improvement whilst allowing you to benchmark your position against your industry peers. Those with less than 50 employees can join the small and micro business membership level for free in order to have access to the self-assessment tool. You will need to create an account to gain access.
TCFD Knowledge Hub
  • Website
  • TCFD
Is there a knowledge gap on climate-related disclosures? The TCFD Knowledge Hub is a great, free resource with courses that take between one and three hours to complete. Simply sign up to get started.
Zero Carbon Business
  • Website
Find information on transitioning to net zero, including guides on reducing waste, renewable energy technology, case studies events and access to funding across the UK.

Applying this in practice

Now you know how climate change is impacting your organisation, what your priorities are and how they can be measured, it is time to put this into practice. Make a climate strategy, set targets and milestones to keep your organisation and stakeholders accountable. Report on what you are doing to show not only investors how you are responding but also to encourage others to do the same.

10 actions to get started
  • Helpsheets and support
  • ICAEW
We know time and resources are limited. We’ve pulled together a list of simple things you can do to start reducing your business’ climate impact.
Climate Readiness Check
  • Website
  • Chapter Zero
For those in medium sized organisations you may need to make a case to your board. Chapter Zero have a useful toolkit to aid those conversations considering you current state, risk and target state.
Paris-aligned accounts
  • Hub page
  • ICAEW
ICAEW explores how accountants in business and practice can align corporate reporting to the Paris Agreement objectives. Find out more in our Paris-aligned accounts hub.
Trade skills and green growth
  • Article
  • ICAEW
Lynn Oxborrow of Nottingham Business School discusses the challenges and opportunities for SMEs as we emerge from the pandemic, taking advantage of trade, skills and green growth.
Case study: Eosta
  • Report
  • We Value Nature
Eosta valued the true cost of various fruits and vegetables through developing an integrated profit and loss account of these products based on true cost accounting. It was the first SME in the food & agribusiness to do so.
We want to hear from you

We aim to develop this page to provide the most up-to-date and relevant information to our members and would love to hear your feedback. If you think there are areas you think need further signposting, please do get in touch.