According to new academic research, the UK government should be doing more to support small and medium-sized businesses to decarbonise. Small and medium-sized firms account for approximately half of UK emissions, but the government’s current policy has been criticised for a failure to deliver sustained emissions cuts.

The government’s existing approach is described as focusing on “low-hanging fruit”, small initiatives such as changing lightbulbs to LEDs. According to the new report, published in the Energy Research and Social Science journal by researchers at the University of Exeter Business School, policies should instead aim to deliver “systemic” change.

There are currently more than 5.6 million SMEs in the UK and, according to the report, they are responsible for an estimated 43 to 53 per cent of UK emissions. Researchers argue that the government could do more to facilitate systemic change through means such as technical support, financial incentives and advice specific to SMEs.

According to the report, many SMEs lack the resources, expertise and technology required to effectively decarbonise and the government should invest in advising SMEs on “long-term decarbonisation”. Researchers say this could be achieved by training accountants, trade bodies and energy advisers to work with small businesses and that local authorities and NGOs could help to deliver this additional support.

The report urges the government to improve reporting and monitoring on SME decarbonisation activities, as smaller companies typically lack standardised reporting frameworks and metrics.

According to researchers, SMEs often self-report decarbonisation information in surveys. As this information is usually not externally verified, the report argues, it “may not be meaningful or sustained”. The report suggests government-funded digital platforms could provide small businesses with access to tools to track emissions, peer benchmarking and best practice.

Describing the government’s current approach as “frustrating”, Steffen Boehm, professor of organisation and sustainability at the University of Exeter Business School, says: “We look at the big power sector, which successive governments have done really well to decarbonise. This is because there was a long-term strategy based on the Climate Change Act 2008. Given that the vast majority of companies in this country are SMEs, we’d like to see similar leadership and a long-term strategy for the sector.”