As a financial services provider to both UK Small and Medium Enterprises (SMEs)1 and commercial landlords, Barclays sees first-hand where some of the major barriers and enablers are holding back investment in energy efficiency improvements to business premises.
The built environment contributes significantly to the UK’s carbon footprint, accounting for 25% of emissions2. Commercial premises are a key contributor, estimated to represent nearly a quarter (23%) of built environment carbon emissions3, the majority of which (where data exist) are occupied by SMEs with less than 250 employees4.
Given that 56% of UK commercial property is estimated to be tenanted5, SMEs are also likely to be tenants rather than the owners, which can impact their ability to make material changes to the premises under their lease agreement.
Combining a review of Barclays’ insights from previous market research with new quantitative data from the Barclays Business Prosperity Index survey, Barclays has identified four key insights which shed light on the causes of the UK’s slow progress to date, including cost barriers and data availability.
To drive faster progress in reducing built environment emissions, Barclays has used these insights to inform six policy recommendations to the UK Government, each designed to incentivise investment in energy efficiency improvements to SME business premises.
