ONLY just over 40% of Scottish businesses have taken actions to decarbonise prompting calls for more financial support as Covid-19 restrictions ease.

And the new research commissioned by Citizens Advice Scotland (CAS) shows that while investment is needed in green moves, nearly one in three small businesses are worried about the their energy prices rising.

Concerns about rising energy costs increases to more than half (58%) of hospitality and leisure businesses.

In the year Glasgow is to host world leaders at the United Nations COP 26 climate summit CAS said progress towards net zero might stall if small business are not given more support to improve their energy efficiency.

Carried out by YouGov, the research found that almost half (48%) of small and medium-sized enterprises (SMEs) in the UK had had taken at least one step towards decarbonisation, but said CAS said more work should be done by government and regulators to help business transition.

The Herald:

Only just over 40% of Scottish SMEs, which employ and estimated 60% of the national workforce, had introduced decarbonisation measures while the research found that it was around 50% for businesses elsewhere in the UK.

CAS said this is likely to be partially due to Scottish businesses in the sample having a smaller turnover than business from other parts of the UK.

Most businesses who had not taken any action had not done so because they felt it was not relevant to their business (40%), it was unaffordable (16%), or because they had a general lack of knowledge on the subject (16%).

The Scottish Government’s climate change plan aims for net-zero emissions by 2045, with interim targets that include a 75% reduction from 1990s emissions levels by the end of this decade.

The Scottish Government’s draft Heat in Building Strategy set out a vision of having 50,000 non-domestic buildings using low and zero emissions heating systems by 2030 – in line with Scotland’s updated Climate Change Plan - to help meet the world’s toughest emissions reduction target for this date.

According to the research, Scottish SMEs, who will need to meet these ambitious targets, were slightly more likely than SMEs in other parts of the UK to indicate a need for advice and support to get started on decarbonisation.

CAS said there needed to be a "targeted, collaborative campaign" to help SMEs understand their contribution to meeting Scotland’s climate targets, and where to access advice, support, and funding could "increase confidence and encourage early action" on decarbonisation.

CAS Senior energy policy officer Emily Rice said: “Small businesses are the backbone of Scotland’s economy and they have shown a willingness to take the lead in the transition towards reducing emissions, with almost half taking at least one action.

“However, after the impact of the Covid-19 pandemic, it’s understandable that small business is concerned about the affordability of further investment in energy efficient measures after such a tough year.

“With one in three small business worried about rising energy prices, including more than half of SMEs in hospitality and leisure, we need to ensure business get the support they need to cut emissions and their bills at the same time.

“Everyone has a role to play to getting towards net zero emissions – what is essential is that it’s done in a fair way that creates jobs and doesn’t increase costs for people who are struggling to pay.”

Andrew McRae, policy chairman of the Federation of Small Business in Scotland added: “Local and independent businesses in Scotland have taken on billions of pounds of debt during the Covid crisis. Many of these firms have only recently been permitted to re-open to customers, so it is little wonder that they’re worried about rising overheads including energy bills.

“However, we also know that smaller firms want to play their part in tackling the climate crisis. That’s why we agree with CAS that extra help should be provided to help these businesses improve the energy efficiency of their premises. We must also ensure that local operators get a fair share of contracts associated with the transition to a low carbon economy.”

A Scottish Government spokesman said: “We are wholly committed to becoming a net-zero economy by 2045 at the latest – and to making that transition in a way that is fair to everyone and leaves no one behind – that is what we mean by a just transition. 

“We are clear that these principles are not an 'optional extra' – they are central to how we make choices about reducing emissions in order to end our contribution to climate change."