Commissioned by Natural Environment Research Council (NERC)
Introduction:
This UK study examines the role of finance systems in changing business behaviour to reach Net Zero and Nature Positive environmental goals. Attention is on SMEs (<250 employee firms), which make up the vast majority of UK businesses and also contribute to a majority of pollution. The project anticipates the increasing financial reporting requirements of environmental impact performance by larger businesses in the UK and the likely supply chain impacts that this will have on SMEs.
Aims:
Greater understanding is required for how net zero and nature positive impacts by SMEs will be reported to investors and large businesses with SMEs in their supply chains. SMEs face challenges of newness and smallness, with less access to finance and fewer resources, that impinge on their ability to report on their biodiversity and carbon risks. Yet, SMEs can be nimble and provide the innovative source of forward-looking, purposeful and alternative business models that …