Business climate change toolkit

Climate change, energy prices and environmental regulations affect all organisations, creating opportunities and risks as the economy goes through a green transition.

This toolkit aims to help smaller businesses, who likely have fewer staff, less in-house expertise and smaller budgets to work on these issues.

Ways to take action today

Small businesses can speak to our Green Team for a free green business review for impartial advice to help get ahead in the green transition. The team develop bespoke reports with practical recommendations for cutting carbon and cost saving, with signposting to grants and tax exemptions.

Request a free green business review

Going green is good for business, here are five simple steps to save you money and energy.

Implement energy saving tips for small businesses

In 2024, UK small and medium-sized enterprises saved around £450 on bills when they put in energy-saving measures. Save your business money today and reduce your energy usage by:

• Replacing lights with LEDs and installing motion sensor light bulbs
• Improving insulation in your business buildings and monitoring energy use
• Unplugging equipment when it isn't in use and when replacing check energy efficiency labels
• Closing doors to keep heated or cooler air inside
• Driving company vehicles efficiently braking and accelerating smoothly, keeping tyres inflated and turning off idling engines to save fuel and cut carbon

Under the latest government regulations, landlords of non-domestic properties must ensure they have a minimum energy performance certificate rating of E. Check the EPC for your building (GOV.UK).

Review your energy tariff and consider a ‘green’ supplier

Where you choose to spend your money truly makes a difference.

• Switch to a green energy tariff to reduce your carbon footprint
• Generate your own heat and electricity, grants and tax relief are available for heat pumps, solar panels and electric vehicles
• Electric vehicles offer savings on fuel expenses. Businesses can save between 80% and 90% on ongoing fuel costs when switching from petrol or diesel vehicles to electric vehicles due to the lower cost per mile of electricity compared to fossil fuels (Source: RAC)
• Opting for greener banking services and making sure your business insurance covers extreme weather events can help protect both your business and the planet.

Buy less, buy local and reduce waste

If you’re responsible for purchasing and disposing of items for your business, you can save money, strengthen your supply chain relationships, and reduce your carbon footprint by:

• Replacing appliances and IT only when necessary and when you do, choosing the most energy-efficient options available.
• Sourcing from suppliers offering the most sustainable products and encouraging your suppliers to verify and improve the green credentials of their own products.
• Promoting the principles of reduce, reuse, repair, and recycle (in that order) among your staff, such as minimizing printing, repairing IT equipment, recycling paper and other materials at work.
• Selecting lower-carbon food options if your business caters events or operates a canteen.

Engage your staff on the green agenda

Your staff are not only your greatest advocates but often one of your largest expenses. Engaging your team to take pride in your business’s green credentials and empowering them to share this with customers can:

• boost employee spirit
• improve staff retention
• enhance your reputation
• help win new business

Three effective ways to engage your staff in your green initiatives:

• Encourage energy-saving habits by asking staff to turn off lights and appliances when not in use and to report issues like dripping taps, helping save money on utilities.

• Train and empower by educating your team about your green commitments and inspire them to confidently communicate these benefits to customers.

• Promote green travel by supporting sustainable commuting options such as carpooling, public transport or electric vehicles for your fleet.

Stay up to date with emerging environmental regulation

Environmental regulation affects businesses of all size. Businesses need to manage waste and reduce packaging.

Businesses not managing regulations will be fined and will struggle to win contracts with bigger companies.

Take a look at the regulation section for more information.

Access grants and tax breaks to help business go green

Enhanced capital allowances

You can claim enhanced capital allowances (a type of 100% first year allowance) for the following equipment, which must be new and unused:

• electric cars and cars with zero carbon emissions
• plant and machinery for gas refuelling stations, for example storage tanks, pumps
• gas, biogas and hydrogen refuelling equipment
• zero-emission goods vehicles
• equipment for electric vehicle charging points
• plant and machinery for use in a special tax site in UK Freeports or Investment Zones, if you’re a company

Find more information about claiming capital allowances (GOV.UK)

Boiler upgrade scheme

The owner of the property used for your business can apply for the boiler upgrade scheme. This scheme provides a grant of £7,500 towards an air or ground source heat pump to replace your fossil fuel heating system. If you are off-gas and in a rural location, you may be eligible for £5,000 towards a biomass boiler.

Find out more about the Boiler Upgrade Scheme (GOV.UK)

Workplace charging scheme

The scheme covers up to 75% of the total costs of the purchase and installation of electric vehicle charge points in parking facilities associated with business premises.

It provides up to £350 per socket for a maximum of 40 sockets. These chargers are to be used for staff or fleet vehicles but may be used for local residents outside of office hours.

Find more information about the Workplace charging scheme (GOV.UK). Applications close at midnight on 31 March 2026.

Electric vehicle infrastructure grant for staff and fleets

This grant provides funding for small and medium-sized businesses to buy and install electric vehicle (EV) charge points and supporting infrastructure for use by staff and fleet vehicles. The work can be for sockets you want to install now and in the future for things such as wiring and posts.

The grant covers 75% of the cost of the work, up to a maximum of £15,000. You can get up to £350 per charge point socket installed and up to £500 per parking space enabled with supporting infrastructure. You can receive up to five grants across five different sites.

Find more information about the electric vehicle infrastructure grant for staff and fleets (GOV.UK). Applications close at midnight on 31 March 2026.

Other grants and support to install electric vehicle charging points

Find out about Hampshire County Council’s support for EV charger installation

Further grants information for greener commercial vehicles and charging (Energy Saving Trust)

Solar Together

A group-buying scheme to increase the accessibility of purchasing solar panels. Typically, under this scheme, solar panel systems are offered at 30% to 35% less than the average market price. Homeowners, small or medium-sized businesses, and tenants (with a landlord’s permission) can apply for the scheme.

Find out more and register your interest with no obligation with Solar Together

Basingstoke and Deane Workforce Development Grant Scheme

This local grant scheme provides funding to local micro businesses and small to medium-sized enterprises to train and upskill their workforces. The aim is to give employees the knowledge they need to support business growth and organisational resilience and continue their professional development.

Applications are prioritised if they target green skills.
Find further details and how to apply for the Workforce Development Grant Scheme

Further grant and funding support for SMEs

More information about support for small businesses can be found on the finance and support page of the UK Business Climate Hub.

Innovate UK – UK Research and Innovation (UKRI)

Grants that support start-ups and SMEs to develop innovative ideas. To be used for research and development, prototyping or scaling innovation. For more information visit Innovate UK

Made Smarter

Offers up to £20,000 or 50% match for SMEs adopting digital technology used for for automation, data or AI integration. For more information visit Made Smarter

Growth Guarantee Scheme (GGS) | British Business Bank

Supports access to match-funded debt finance such as loans for UK smaller businesses to use for working capital, growth, investment in assets or expansion. The scheme provides the lender with a 70% government backed guarantee

Find more information about the Growth Guarantee Scheme (GGS) | British Business Bank

UMi Get Funding

Supports UK businesses of all sizes, although eligibility varies. Connects business to grants, loans and investment to help fund growth, innovation, sustainability and business development.

Find more information at UMi Get Funding

Catalyst Funding Hub

This is a portal for multiple funders with various funds available. Open to UK non-profits, charities and social enterprises. Supports community, innovation, environmental and social impact projects.

For more information visit the Catalyst Funding Hub

Knowledge Transfer Partnerships (KTPs) | University of Portsmouth

This partnership brings eligible businesses together with academic teams from Portsmouth University to co-develop solutions. Grant-funded, it supports innovation, tech adoption and staff upskilling via live projects.

Find more information at Knowledge Transfer Partnerships (KTPs) | University of Portsmouth

Knowledge Transfer Partnerships | University of Southampton

Partnership where SMEs collaborate with Southampton University. Funding covers project costs to be used for product development, innovation and embedding academic knowledge in business.

Find more information at Knowledge Transfer Partnerships | University of Southampton

Funding finder (GOV.UK)

Government portal to help find funding to help your business become greener. Keep an eye on it for updates.

For more information visit Find funding to help your business become greener (GOV.UK)

Apprenticeship levy

The apprenticeship levy funds the recruitment and training of apprentices. It can be accessed through Hampshire County Council.

Find more information through the Hampshire Growth Hub Team

Local business networking and support groups

North Hampshire Sustainable Business Network
A network organised by local businesses, local authorities and the Hampshire Chamber of Commerce offering free half-day workshops and a website with expert information for small to medium sized businesses. Visit the Sustainable Business Network website for more information and to sign up for free monthly updates and online sessions

Stay ahead of environmental regulations

There are several environmental and climate-related regulations that businesses in the UK need to act on. Being ready will help a business avoid reputational, financial and climate related damage.

Regulations to be aware of:

• Workplace recycling in England requiring businesses to separate waste and recycling (plastics, metals, glass, paper, card and food waste) before being collected. If you have fewer than 10 full-time employees, then you have until 31 March 2027 to do this, all other businesses must comply now. Find out more information about Simpler recycling (GOV.UK)
• Single-use plastics bans and restrictions where businesses must not supply certain single-use plastic items in England. Find out more information about single use plastics bans and restrictions (GOV.UK)
• Biodiversity net gain (BNG) requirement to ensure projects by developers in England result in at least a 10% net gain in biodiversity compared to the pre-development state. Find more information about understanding biodiversity net gain (GOV.UK)
• Extended Producer Responsibility (EPR) where businesses producing or importing packaging materials are responsible for the costs associated with recycling and disposing of that packaging. Small businesses with a turnover of at least £1 million and handling over 25 tonnes of packaging annually must register and submit detailed packaging data. Find more information about Extended Producer Responsibility
• UK Sustainability Disclosure Standards (SDS) require large companies to report on their environmental impact and sustainability efforts. SMEs are encouraged to begin assessing their carbon emissions and sustainability practices as the government have indicated plans to extend to them. Some businesses already participating in UK SDS also require their suppliers to report on their sustainability efforts. Find out more about the UK sustainability reporting standards

Keep up to date with environmental regulations that may affect your business by taking a look at:

• our environmental legislation for businesses webpage
• the government’s webpage about environmental taxes, reliefs and schemes for businesses

Protect your business reputation

Business closure or outage because of extreme weather caused by climate change is a risk.

• Flooding can damage premises, stock, and equipment, leading to costly repairs and business interruptions.
• Heatwaves may affect employee health, productivity, machinery performance and increase cooling costs.

Many SMEs lack the resources to recover quickly from such disruptions. According to the Environment Agency, flooding alone costs the UK economy £1.3 billion annually, with small businesses often bearing the brunt.

Making sure the risks caused by climate change are understood, managed and mitigated against is good business practice.

Boost your green credentials and attract new business

Consumers are willing to pay more to greener businesses
Over one-fifth of consumers are willing to pay a premium for sustainable products and services and 45% of consumers consider a company's environmental reputation as a primary factor when choosing where to shop.

Supply chain opportunities
Many large organisations and government bodies require their suppliers to meet specific environmental standards. SMEs that obtain certifications like ISO 14001 or B Corp can gain a competitive edge by qualifying for contracts and partnerships. Suppliers of major contracts to public bodies will need a carbon reduction plan in place.

Environmental credentials attract investors
85% of investors said they consider environmental, social and governance (ESG) factors as influential in their assessments. Businesses with poor corporate sustainability evidence may be seen as risky investment propositions or business partners.

Measuring and reporting greenhouse gases for business
Reporting is a good way to demonstrate a business is managing its greenhouse gases. The Greenhouse Gas Protocol provides standards and reporting guidance on greenhouse gases.