Net Zero: a bumpy ride for UK SMEs?

net zero uk smes

If you’ve sensed a shift in how businesses talk about sustainability, you’re right. The conversation is shifting from sustainability as an environmental motivated strategy, to sustainability to ensure stronger supply chains, a more efficient use of resources and overall, better business performance.

The 2025 BSI Net Zero Barometer reveals that while timelines are being reviewed, most UK business leaders now see net zero as part of long-term business resilience.  Firms are focusing on manageable steps that build capability, credibility and resilience – all to secure the future of their business alongside the future of the planet.

Fair enough.

What this means for SMEs

For construction firms, architects, contractors and service providers, the challenge is to make sustainability stick. High energy costs, regulatory uncertainty and limited incentives create friction, but they also sharpen the need for smart, phased decision-making.

We’ve seen SMEs starting with lower-cost measures (LED lighting, building controls, insulation), alongside monitoring important metrics such as energy and waste more closely. We often hear that sustainability measures are at risk when budgets are under pressure, so the sustainability elements of a design have to be shown to deliver on price and performance alongside environmental benefits. There’s also an increase in practices building internal systems for measurement, reporting and continuous improvement.

By doing so, these companies preserve optionality: when incentives, grants or regulations change, they’re already in a stronger position to scale up.

Sustainability grants for SMEs

While investment is sometimes necessary, some very practical levers exist. One especially useful option is that smaller firms can sometimes access free or subsidised audits through local councils or business support programmes. These audits can diagnose energy, waste or water inefficiencies and help you prioritise actions that offer the best return.

If you’re unsure what’s available in your area, start here:
GOV.UK – Find business energy efficiency grants and schemes
That page helps you explore national and local programmes. Also check your local council’s “business support” or “sustainability / environment” pages.

Turning advice into action

Once you have an audit in hand, you’re better placed to make investment decisions with confidence. Some recommended steps:

  1. Prioritise “no-regret” measures — things with short paybacks (lighting, controls, behaviour changes).

  2. Bundle projects — grouping several upgrades can lower per-unit costs and simplify financing.

  3. Seek match funding or grants — many programmes will match a proportion of your capital spend.

  4. Phase your investments — don’t try to transform everything at once. Start with high-impact elements.

  5. Track and communicate progress — even modest gains in energy or carbon performance can be powerful when shared with clients, supply chain, local authorities.

  6. Stay alert to policy changes — as regulations, incentives or standards evolve, being ready means you can move quickly when opportunities open.

Those SMEs in the built environment sector that can lean into the lower-hanging fruit, access free/local support and build a culture of continuous improvement will be best placed when momentum returns.

At Brace For Impact, we help our clients use their sustainability story to win more work – whether that’s through a Sustainability Report, Grant & Tender reponses or SEO-optimised web copy. If you’d like help mapping your next steps, get in touch.