Tim Rook, Chief Markets Officer at Clade Engineering Systems, the foremost producer of air source and propane heat pumps in the UK, applies 16 years of expertise in the industrial and renewable energy sectors to tackle the challenge of decarbonisation. In this article, Rook explores the ways in which firms can contribute to the journey towards net-zero emissions and circumvent the “bystander effect” impeding progress.
The Federation of Small Businesses (FSB) reports that SMEs account for 99.2% of the business landscape in the UK, half of the private sector’s turnover and three-fifths of the workforce. These figures highlight the vital role SMEs have in combating climate change and moving towards renewable energy and decarbonisation.
As it stands, most SMEs are eager to fight climate change and integrate sustainability within their business models. Regrettably, however, these same businesses often face financial limitations and, in some cases, a general lack of knowledge around the support that is available to them. Climate initiatives, business grants, and knowledge on renewable technologies like commercial heat pumps or solar panels are accessible, yet many remain uninformed or unable to afford the financial bump incurred.
Financial constraints and a lack of awareness are barriers that can be overcome with time and resources, yet a greater threat looms within the UK’s decarbonisation efforts – the “bystander effect,” which could severely constrain strides towards Net Zero.
What is the bystander effect?
In social psychology, the bystander effect proposes that in emergency situations, the greater the number of witnesses, the less likely it is that someone will intervene or offer help. The principle suggests that in a collective, individuals assume that others will act, leading to overall inaction. You’ve most likely seen this yourself, when someone is being hassled in the street; many people will simply walk by – either through a sense of self-preservation, or because they imagine someone “more capable” will deal with the situation.
Applying this to the global climate crisis and the inertia among SMEs concerning decarbonisation, the risks of the bystander effect become apparent.
The bystander effect and climate change
It’s understandable for people to feel daunted by the magnitude of climate change, questioning the effect of individual actions like recycling at home. Yet, these small lifestyle alterations do have a broader impact.
For businesses, enacting significant operational changes presents additional challenges, especially given the short-term financial costs and the difficulties in changing staff and customer habits. Change requires time, resources, and finances.
Small business owners may reassure themselves that their individual decarbonisation efforts are inconsequential compared to larger enterprises, leading to a justification of inaction. If compliance costs are prohibitive, an SME may rationalise that while they can’t afford it, others can, and thus changes are not necessary on their part.
The real peril of the bystander effect is its cumulative nature, as this mindset becomes widespread, severely hindering progress.
Support for small businesses
It is crucial for small business owners to overcome the bystander effect and proactively engage in decarbonisation. The government has established a sustainability hub to assist 5.5 million small businesses.
The UK Business Climate Hub provides support for SMEs to shift their energy use to renewables, like air source heat pumps, and to cut energy costs, which is vital as energy prices rise. The hub offers advice on cost-effective climate initiatives, carbon credits, sustainability training, waste reduction, green procurement, and business grants.
Low carbon heat pumps as a commercial solution
Commercial heat pumps, particularly air source ones, are a significant step towards sustainability and decarbonisation, contributing to the government’s target of Net Zero by 2050. The widespread adoption of renewables, including heat pumps, is crucial for this goal.
Heat pumps offer low-carbon heating for commercial and residential properties, reducing carbon emissions and energy costs. The benefits are clear, and it is puzzling why some businesses hesitate to adopt this technology.
The business benefits of Net Zero
Climate change’s impact is global, and reducing carbon emissions is a longstanding political goal. For SMEs, this involves sustainable products and practices, using eco-friendly materials, improving insulation, promoting public transport, adopting green logistics, and utilising renewables like heat pumps.
The benefits for SMEs pursuing Net Zero include:
Enhanced reputation: Consumers favour brands with sustainability commitments.
Lower energy costs: Renewables can lead to significant savings.
Investor attraction: Investors seek out environmentally conscious businesses.
Process stability: Moving to electric vehicles and renewables can increase energy independence and reduce market volatility.
In conclusion
While interest in Net Zero is high among UK businesses, the bystander effect can deter initial steps, particularly when renewable energy remains underutilised. What’s needed is more influence and incentives from policymakers, along with collaboration with renewable energy providers, to encourage businesses towards sustainable practices.