Only 15% of UK Small Businesses Have Measured Their Carbon Footprint, Report Finds

Carbon Accounting

Written by Onye Dike

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Published May 29th, 2025

2 min read

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A new report by the Federation of Small Businesses (FSB) and Zurich UK highlights a pressing challenge in the UK’s journey to net zero: a widespread lack of understanding about carbon accounting among small business owners.

Findings from the FSB Net Zero Survey, presented in the New Growth report, show that only 15% of small businesses have measured their carbon footprint. Among those that have been asked to do so, 74% do not understand key terms such as Scope 1, Scope 2, and Scope 3 emissions. Of the businesses that haven’t been asked, 56% believe providing emissions data would be difficult or very difficult.

To tackle these challenges, the report recommends establishing a standardized carbon accounting framework, promoted by the Cabinet Office and Net Zero Council. It also calls for Ofgem to require energy suppliers to include greenhouse gas emissions data on bills, while urging larger companies to invest in decarbonizing their supply chains. Local authorities should also replicate successful models like the Carbon Clinic workshops in Hull (delivered by BACB Renewables) providing SMEs in with practical, tailored support.

Beyond carbon accounting, the report outlines several other key findings:

Only 26% of small firms believe they have the knowledge to transition to net zero, and just 14% say they have the time.
Cost remains a key barrier, with 38% citing lack of capital as a major issue and many relying on personal savings to fund green upgrades.
Just 16% use zero-emission vehicles, with high costs and limited infrastructure seen as major deterrents.
Awareness of government support schemes remains low. For example, only 16% of firms know about the Workplace Charging Scheme.

With small businesses making up over 99% of the UK’s business population, the report stresses that targeted, accessible support is critical if the UK is to meet its 2050 net zero goal.