The proportion of Irish businesses taking measures to conserve water has risen to its highest level in three years, the latest Uisce Éireann SME sustainability sentiment survey has found.
Around 70% of SMEs said they are conserving water, up 5% from 2022, and the number of companies that said it is ‘not on their radar’ has declined from 31% to 28%.
Energy use, waste and plastics are the top three environmental areas where businesses are most active.
Cost concerns remain the primary obstacle for 70% of SMEs when asked what the barriers were to adopting sustainable practices.
However, the number of businesses citing a lack of information or government support has fallen considerably from 57% in 2023 to 43% in Q2 2024.
“Despite ongoing challenges related to cost, SMEs are steadfast in their commitment to maintaining and improving sustainability measures,” said Geoffrey Bourke, head of customer operations with Uisce Éireann.
“Uisce Éireann recognises the considerable effort businesses have made in improving their water conservation activities throughout the past 18 months and we want to support SMEs as the green transition accelerates.”
“It is clear from the survey results that employees and customers alike still have real appetite for businesses to take an active role in contributing to conservation.
“We offer a wide range of supports to aid SMEs on this journey, from our world-leading Water Stewardship Programme, to our sector-specific water conservation tips on water.ie/business.
“In addition, our team is always on hand to help our business customers, whatever their size, in managing their water use and make lasting, impactful change.”
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.
Some 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.
“Ireland’s small businesses are taking the issue of water conservation more seriously,” said David Broderick, director of the Small Firms Association.
“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.”
Nine in 10 businesses intend to maintain or increase their investment in sustainable practices in the coming year, but there has been a slowdown in plans for new sustainability investments.
Some 15% of businesses said they were planning for investment, down from 20% last year.
Similarly, the number of businesses that 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%.
Ipsos B&A surveyed the owners of more than 350 SMEs for the study.
Photo: Geoffrey Bourke. (Pic: Supplied)
