A new 2025 study by Novuna Business Finance has revealed that 88% of small businesses now prioritise certain aspects of sustainability more than they did at the start of last year.

However, financial constraints remain a barrier to fully realising these sustainability objectives.

During the 2024 period between Christmas and New Year, Novuna Business Finance surveyed a representative group of 255 small business owners to identify which aspects of sustainability had grown in importance for their businesses compared to the previous year.

Leading the findings was a focus on energy consumption, with many businesses prioritising the review of their water usage, heating systems, and opportunities to increase reliance on renewable energy sources.

Other key environmental priorities highlighted in the research included adopting greener transportation options (29%) and investing in updated equipment and sustainable infrastructure (18%).

Beyond environmental and net zero concerns, many small businesses take a holistic approach to sustainability.

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Nationally, 27% reported that enhancing working conditions and employee contracts—ensuring fair treatment for all staff—has become a greater priority compared to a year ago.

Other sustainability priorities for this year included creating local job opportunities (32%), investing in local suppliers and contractors (16%), and fostering a positive social impact within their immediate communities (27%).

While the scope and variety of sustainability goals set for 2025 were considerable, many small businesses expressed concerns about the challenges they face in achieving them. 

The main barriers to investing in sustainable initiatives in 2025 were high energy costs (55%), rising fuel prices (47%), the potential for increased inflation and interest rates (40%), and the economic effects of government policies such as changes to National Insurance (48%).

More than 70% of small businesses (77%) expressed concerns about the potential ripple effect of the Trump presidency, fearing it could negatively impact the outlook for UK small businesses in 2025 and beyond.

As per the research, 26% expressed concerns that the new US administration may prioritise climate change less, potentially reducing the pressure on businesses to contribute to net zero goals.

The potential for increased market volatility affecting the UK was another significant concern, with 33% of small businesses worried about its impact on economic growth forecasts and interest rates while 22% expressed fears over its effect on their trading relationships.

Across the UK, small businesses in the East Midlands, West Midlands, and the North have shown a particularly strong commitment to sustainability for 2025.  

In contrast, small businesses in Wales placed less emphasis on many sustainability initiatives, consistently falling below national averages.

Novuna Business Finance’s head of insight Jo Morris said: “It is positive to see so many small businesses starting 2025 with a positive commitment to sustainable projects and for the vast majority to rate sustainability as more important than it was a year ago.

“Small businesses are doing more than attempting to be green in 2025 – they are true leaders in the sense that they are actively engaging with sustainability in the full meaning of the word. We will share more small business stories on sustainability through our podcast this year – a project that shines a light on inspiring small business success stories from around the UK.”