A sustainable future – Why the small business community is critical to reaching net-zero

Small businesses with a big impact

Small businesses play a vital role in tackling the climate crisis. They are usually agile and innovative and often able to move quicker than larger organisations to tackle problems that need urgent attention. Small businesses are normally driven by founders dedicated to an important environmental issue and are full of energy to take bold risks on new ideas. They are also able to identify niche problems that larger organisations may consider too costly and time-consuming to solve. They play a key role in creating competition within the net-zero industry by placing pressure on larger organisations to evolve, proving that sustainable solutions are possible only possible but can also be profitable. 

Meanwhile, according to the Federation of Small Businesses, SMEs make up 99.8% of the UK’s business community and research from Sage found that they account for 44% of the UK’s non-household emissions. SMEs also make up a huge proportion of the UK business community, so it is even more important that when we are looking to cut business emissions across the board, SMEs are a key part of this.

Their role in our mission to achieving net-zero cannot be overlooked and that is why the Northern Powerhouse Investment Fund II (NPIF II) is dedicated to providing the access to finance that enable these businesses to achieve growth.
 

Empowering climate businesses across the North

Since the launch of NPIF II last year, our fund managers have collaborated closely with many net-zero focused businesses in the North, which provide a wide-range of products and services from flattened rolls of solar panels to sustainable packaging.

In the Fund’s first year in operation, it has supported a rapidly growing plant-based food company through an equity investment to boost sales through further product development as well as international expansion. Based in Newcastle, Tiba Tempeh was launched by Alex Longton to help people move away from meat consumption by providing a new sustainable and healthy meat-free solution. The business produces meals made with organic and 100% natural ingredients and is healthier than other existing options in the market.

While it is important that businesses are providing consumers with sustainable products and offerings, on the services side, it is also important that companies are able to monitor their assets' own energy consumption. Monitoring efficient energy use is critical for reducing costs, improving sustainability, and meeting environmental regulations. 

An NPIF II-backed business that is doing this is Preston-based Origin Control Solutions (OCS). Securing a six-figure investment in March, the firm specialises in smart buildings and remote monitoring solutions, which helps its clients have total control over their energy consumption, while giving them the insights to turn their workplaces into intelligent, sustainable environments.

Businesses like Tiba Tempeh and OCS empower their customers to think twice about their impact on the environment by offering products and services which give them the option to make better and sustainable choices.

As we look ahead, it’s clear that the journey to net-zero cannot be led by government policy alone, but by the ingenuity and determination of businesses, especially the small business community across the North that are driving change from the ground up. NPIF II remains committed to backing those bold enough to challenge the status quo, innovate with purpose, and put sustainability at the heart of their mission. In supporting these businesses, we’re not just investing in growth, but we’re investing in a greener, more resilient future for us all.