LONDON, 21 June 2010: Despite the UK aiming to reduce its carbon emissions by 34% by 2020 (1), a new study from GE Capital today reveals that UK small and medium-sized enterprises (SMEs) are less focused on reducing carbon emissions today than they were prior to the recession.
According to the latest research, there has been a large (23%) increase in the proportion of UK SMEs doing "little or nothing" to reduce emissions since 2007. The research shows an increase from 30% in 2007 to 37% in 2010 for companies saying that they are investing little or nothing, with just 9% of them now putting any significant amount of investment into doing so.
John Jenkins, CEO, GE Capital UK said: "There is no doubt that the recession has had a major impact on SME's attitudes and strategies towards green investments. Many firms may have chosen to defer or halt any further outlay into energy and CO2 efficient equipment, preferring to consolidate their financial positions instead. With UK businesses accounting for 15% (2) of emissions, the only saving grace for the climate was the reduction in output caused by the recession which contributed to the lower emissions witnessed over the period"
However, not all sectors have shown the same apathy towards green investments. Encouragingly, SMEs in manufacturing, IT, telecoms, media and construction have all continued to focus on reducing their emissions. However it does not come as much of a surprise to learn that the hardest hit sectors through the recession (such as retail and leisure) have decreased their focus.
When it comes to changing behaviour SMEs are firmly of the view that the carrot is better than a stick with 42% putting better tax breaks and 34% more help with funding as the most popular measures to support them to do more. In contrast, only 13% put more regulation as an effective measure. Despite the high profile of climate change many firms are still struggling to understand why they need to change behaviour with a fifth (21%) citing a need for a better understanding of the environmental impacts of what they do today and a fifth (21%) wanted better education on the benefits of new investments.
On a positive note, when it comes to considering micro generation (solar panels, wind turbines or combined heat and power) in order to reduce emissions and lower fuel costs, 4% of SMEs have recognised the economic benefits and already invested and one in seven (14%) of UK SMEs are considering doing so.
John Jenkins, CEO, GE Capital UK continued: "As the economy starts to recover it is vital that this plateau in attitudes is reversed, particularly if SMEs are to make their full contribution to reducing emissions while still supporting economic growth. Being part of one of the companies at the forefront of efforts to help reduce greenhouse gas emissions, through our Ecomagination (3) programme, GE Capital is actively working with government and manufacturers of micro renewable energy systems to build innovative funding solutions to make it easier for SMEs to invest in greener technology."
Notes to Editors
GE Capital commissioned an independent market research company, the Survey Shop, to interview 500 owner managers of SMEs based in the UK. The research was conducted anonymously by phone during March 2010.
1. Governments CO2 emission target to reduce emissions by 34% from 1990 to 2010
2. DECC estimates, March 2010
3. GE Ecomagination -- Ecomagination is a business initiative to help meet customers' demand for cleaner and more energy-efficient products and to drive reliable growth for GE. Ecomagination also reflects GE's commitment to invest in a future that creates innovative solutions to environmental challenges and delivers valuable products and services to customers while generating profitable growth for the company.
About GE Capital in the UK / EMEA
GE Capital is one of the leading commercial finance providers in the UK with major operations in asset-based, fleet, leasing and healthcare financial services. GE Capital has major offices in Bristol, Manchester, Sale and the London area and focuses on providing leasing and lending solutions, from working capital and investment finance through to fleet management and equipment leasing to mid-market customers.
GE Capital is also leading provider of specialist finance throughout the EMEA region, providing a wide range of solutions including: accounts receivable management, inventory finance, ABL, cross-border financing, leveraged finance, European leasing/vendor finance and fleet management. GE Capital focuses on sectors where it can share GE's 130+ year heritage with customers - energy, healthcare, media, transportation and industrial - and has a major footprint in EMEA, including an exciting $8 billion commercial finance joint venture with Mubadala in Abu Dhabi.
About GE Capital globally
GE Capital, headquartered in Norwalk, CT, is a global provider of financial products and services to businesses, retailers and consumers. It finished 2008 with net income of $8.6 billion and total assets in excess of $572 billion.
About GE
GE is
Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing and media content, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
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Louise Willcox
Lansons Communications
020 7294 3676
Will Spiers
Michael Goodbody
GE Capital EMEA
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