There are several key barriers preventing small and medium-sized businesses (SMBs) in Australia and New Zealand from implementing sustainability strategies:
Cost and Financial Concerns
- Perceived high costs of sustainability initiatives
- 59% of SMEs identified cost as a barrier to taking climate action
- 82% of SMEs have seen their overhead costs increase in the past year, by an average of $1,490 per month
- Difficulty proving return on investment, with 38% of Australian businesses citing this as a barrier
Lack of Time and Resources
- 82% of interviewees said SMEs struggle to find the time to research and implement changes
- Limited awareness and education about sustainable practices and their benefits
Data and Measurement Challenges
- 83% of Australian businesses are not completely satisfied with their ability to accurately measure their environmental impact
- 55% of SMEs find it challenging to find the right information or advice on sustainability
- 30% of Australian businesses rely solely on assumptions and estimates to screen their supply chain’s environmental impact
Strategic and Operational Barriers
- 34% of Australian businesses point to a lack of environmental strategy as a barrier
- Complex supply chains make it difficult to implement sustainable practices across the entire business ecosystem
- Lack of collaboration and knowledge sharing within the manufacturing sector
Regulatory and Government-Related Issues
- Limited government support and incentives for sustainability initiatives
- Lack of clarity from governing bodies, cited as the top barrier by 50% of ANZ businesses
Short-term Focus
- Prioritization of immediate financial concerns over long-term sustainability goals due to current economic challenges
- Consumer Scepticism
73% of consumers surveyed are worried that businesses are involved in social and environmental issues just for commercial reasons
Fear of greenwashing accusations holding businesses back from communicating their sustainability efforts
Addressing these barriers will be crucial for increasing the adoption of sustainability strategies among SMBs in Australia and New Zealand. This may involve providing more targeted support, improving access to information and resources, offering financial incentives, and creating clearer regulatory frameworks to guide businesses in their sustainability journey.
