Sustainable Future_Are NI businesses taking more action than GB
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<strong>Sustainable</strong> future<br />
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
savanta.com<br />
1
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong><br />
working towards a<br />
sustainable future?<br />
The UK Government is currently committed to reaching<br />
net zero by 2050 and expects <strong>businesses</strong> to play a<br />
crucial role in reaching this target by <strong>taking</strong> positive<br />
<strong>action</strong>. In turn, the government aims to offer support in<br />
the form of various policies, incentives, and funding<br />
opportunities.<br />
Savanta recently asked <strong>businesses</strong> in Northern Ireland<br />
whether they had taken any specific <strong>action</strong>s to make<br />
them <strong>more</strong> sustainable and how much influence this<br />
had had on their decision-making policies.<br />
The same research had been carried out with <strong>GB</strong><br />
<strong>businesses</strong>, and Savanta was keen to understand any<br />
differences between <strong>businesses</strong> in Great Britain and<br />
Northern Ireland.<br />
Savanta has used one of its surveys to better understand if <strong>NI</strong> <strong>businesses</strong> have<br />
taken <strong>more</strong> sustainable <strong>action</strong> <strong>than</strong> <strong>GB</strong> <strong>businesses</strong><br />
MarketVue Business Banking from Savanta: A continuous survey of 15,000<br />
financial decision makers in UK <strong>businesses</strong> and over 10 years of historical data<br />
savanta.com<br />
2
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
<strong>Sustainable</strong> <strong>action</strong> appears to<br />
be lower on the <strong>NI</strong> agenda<br />
Businesses in Northern Ireland are less likely to have undertaken any sustainable<br />
<strong>action</strong> compared to <strong>GB</strong> and this difference is significant (55% vs 70%).<br />
The most common sustainable <strong>action</strong> taken by <strong>NI</strong> <strong>businesses</strong> is choosing<br />
responsible and sustainable suppliers. This also leads for <strong>GB</strong>, but the<br />
proportion of <strong>NI</strong> <strong>businesses</strong> is significantly lower. <strong>NI</strong> <strong>businesses</strong> are also<br />
less likely to have conducted an audit or certification <strong>than</strong> <strong>GB</strong> <strong>businesses</strong>.<br />
They do appear to take <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong> <strong>businesses</strong> in relation to<br />
investment in new technologies and switching to renewable energy<br />
suppliers, although these differences are very small.<br />
Over 4 in 10 (45%) claim to have undertaken no sustainable <strong>action</strong>.<br />
Actions taken to make the business <strong>more</strong> sustainable<br />
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
55%<br />
45%<br />
NET: Any sustainablity<br />
70%<br />
NET: No sustainablity<br />
Chosen responsible and sustainable suppliers<br />
Invested in new technologies to drive sustainability<br />
Switched to a renewable energy supplier<br />
Conducted an energy efficiency audit<br />
24<br />
23<br />
16<br />
19<br />
36<br />
34<br />
45<br />
54<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
<strong>NI</strong><br />
<strong>GB</strong><br />
30%<br />
Conducted a carbon audit<br />
Become carbon neutral certified<br />
7<br />
9<br />
4<br />
5<br />
0 10 20 30 40 50 60<br />
<strong>NI</strong> <strong>GB</strong><br />
savanta.com<br />
MVBB: Q3 2023 (SU EST £0-1bn <strong>GB</strong> and <strong>NI</strong>). Base: All excluding DK<br />
MVBB: Q3 2023 (SU EST £0-1bn <strong>NI</strong>). Base: All excluding DK<br />
3
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
Number of sustainability activities undertaken<br />
16<br />
13<br />
<strong>NI</strong><br />
8 2 0<br />
45<br />
22<br />
11<br />
<strong>GB</strong><br />
2 1<br />
5<br />
30<br />
0<br />
1<br />
2<br />
3<br />
4<br />
5<br />
16<br />
29<br />
6<br />
Mean no. of <strong>action</strong>s: 1.32<br />
Mean no. of <strong>action</strong>s: 1.43<br />
Just over 5 in 10 (55%) of <strong>NI</strong> <strong>businesses</strong> have completed at least one<br />
of these six sustainable <strong>action</strong>s compared to 7 in 10 (71%) for <strong>GB</strong>.<br />
Fewer <strong>NI</strong> <strong>businesses</strong> have undertaken at least one (16%) or two<br />
<strong>action</strong>s (13%) compared to <strong>GB</strong>, but a significantly greater proportion<br />
have undertaken 3 <strong>action</strong>s compared to <strong>GB</strong> (16% vs 11% respectively).<br />
savanta.com<br />
MVBB: Q3 2023 (SU EST £0-1bn <strong>GB</strong> and <strong>NI</strong>). Base: All excluding DK<br />
MVBB: Q3 2023 (SU EST £0-1bn <strong>NI</strong>). Base: All excluding DK<br />
4
Business profiles in <strong>NI</strong> impact<br />
sustainable <strong>action</strong> too<br />
In Northern Ireland just over half (51%) of limited companies said they had<br />
taken <strong>action</strong> to make the business <strong>more</strong> sustainable, however this is<br />
significantly less <strong>than</strong> what we saw for <strong>GB</strong> <strong>businesses</strong> (71%). A similar<br />
proportion of <strong>NI</strong> limited <strong>businesses</strong> have taken no <strong>action</strong> (49%).<br />
Amongst self-employed/sole trader <strong>businesses</strong> in <strong>NI</strong>, almost 6 in 10 (59%)<br />
have taken no <strong>action</strong>, which is higher <strong>than</strong> for limited <strong>businesses</strong> (49%) and<br />
significantly higher <strong>than</strong> <strong>GB</strong> <strong>businesses</strong> (37%).<br />
Actions taken to make the business <strong>more</strong> sustainable<br />
100%<br />
<strong>GB</strong> <strong>NI</strong><br />
<strong>GB</strong> <strong>NI</strong><br />
80%<br />
60%<br />
29%<br />
49%<br />
37%<br />
59%<br />
NET: No<br />
Sustainability<br />
40%<br />
20%<br />
71%<br />
51%<br />
63%<br />
41%<br />
NET: Any<br />
Sustainability<br />
0%<br />
Limited companies<br />
Self-employed/ sole trader<br />
savanta.com<br />
savanta.com<br />
MVBB: Q3 2023 (SU EST £0-1bn <strong>GB</strong> and <strong>NI</strong>). Base: All excluding DK<br />
5
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
What does the future<br />
of sustainability<br />
look like?<br />
All <strong>NI</strong> <strong>businesses</strong> were asked to consider<br />
the influence sustainability and climate<br />
change will have on their decision-making<br />
policies in the next year or so…<br />
Sustainability and climate change<br />
will have <strong>more</strong> influence on future<br />
<strong>NI</strong> decision-making policies<br />
Almost half (47%) of <strong>NI</strong> <strong>businesses</strong><br />
anticipate sustainability and climate<br />
change will have <strong>more</strong> influence on<br />
their future decision-making in the next<br />
year and this is significantly different<br />
to what <strong>GB</strong> <strong>businesses</strong> considered<br />
would be the impact (40%). However, a<br />
similar proportion (46%) of <strong>NI</strong><br />
Businesses say there will be no change<br />
(but significantly lower <strong>than</strong> <strong>GB</strong>, 54%)<br />
46<br />
%<br />
<strong>NI</strong><br />
3%<br />
4%<br />
47<br />
%<br />
54%<br />
<strong>GB</strong><br />
2%<br />
More influence<br />
No change<br />
4%<br />
40%<br />
Less influence<br />
Don't know<br />
Those <strong>NI</strong> <strong>businesses</strong> who anticipate<br />
<strong>more</strong> influence in their future<br />
decision-making are <strong>more</strong> likely to be<br />
limited companies, those with a<br />
smaller number of employees and<br />
younger owners. In <strong>GB</strong>, larger<br />
<strong>businesses</strong> (11+ employees)<br />
predicted <strong>more</strong> influence<br />
41 % 66 % 60 %<br />
2-5<br />
Limited<br />
companies<br />
employees<br />
Owners aged<br />
up to 44yrs<br />
savanta.com<br />
MVBB: Q3 2023 (SU EST £0-1bn <strong>GB</strong> and <strong>NI</strong>). Base: All excluding DK<br />
6
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
Sustainability matters<br />
to <strong>NI</strong> <strong>businesses</strong> – but<br />
current take up is low<br />
While recognising the significance of<br />
integrating sustainable practices into<br />
<strong>businesses</strong> in Northern Ireland, it<br />
appears that they may not prioritise it to<br />
the same extent as <strong>businesses</strong> in Great<br />
Britain. Notably, a substantial 45% of<br />
<strong>businesses</strong> in <strong>NI</strong> have yet to take any<br />
sustainable <strong>action</strong>.<br />
Why might this be?<br />
The <strong>GB</strong> business sector is significantly larger and <strong>more</strong> diverse compared to<br />
<strong>NI</strong>, and with it being a larger economy, has a broader range of industries,<br />
which allows for a wider impact on sustainability practices. However, <strong>NI</strong> has<br />
its own unique industries, such as agri-food, tourism, and renewable energy,<br />
where sustainability efforts can be concentrated.<br />
The UK government's policies, including the Clean Growth Strategy and<br />
Industrial Strategy, have a broader impact on the business sector in <strong>GB</strong>.<br />
However, <strong>NI</strong> also has its own initiatives, like the Northern Ireland Climate<br />
Change Act and the Strategic Energy Framework, which can influence<br />
sustainability practices in its business sector.<br />
In line with the requirements of the Climate Change Act and the Executive’s<br />
commitment in the draft Green Growth Strategy, the target date for publishing<br />
<strong>NI</strong>’s first Climate Action Plan was set for the end of December 2023.<br />
We must also factor in the current economic climate. The UK business and<br />
economic environment is still in turmoil and so <strong>businesses</strong>’ main focus<br />
remains on the here and now. Savanta's MarketVue Business Confidence<br />
Index reveals a dramatic drop in Northern Ireland's business confidence for<br />
Q3 2023, plummeting from 47 to 36.<br />
Sustainability for business is not just a responsibility. It is also an<br />
opportunity to create long-term value. And despite these differences and<br />
barriers, the future for <strong>NI</strong> sustainability still looks positive, and with the<br />
implementation of the first Climate Action Plan, we would hope to see the<br />
take up of sustainable <strong>action</strong> increase in 2024.<br />
savanta.com<br />
savanta.com 7
<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
Savanta’s MarketVue<br />
Business Banking<br />
Based on a continuous survey of 15,000 financial decision<br />
makers in UK <strong>businesses</strong> and 10 years of historical data,<br />
MarketVue Business Banking is a highly reliable and detailed<br />
monitor of how banks are perceived by business customers.<br />
It is designed as a complete market overview covering<br />
market share, trends, brand health and customer experience<br />
to inform business strategy and provide tactical feedback for<br />
<strong>action</strong> planning. Interviewing is conducted continuously<br />
among a UK representative sample from start-ups, SMEs up<br />
to major corporates throughout the year and data/insight is<br />
delivered to clients on a quarterly basis.<br />
Savanta is a fast-growing data, market<br />
research and advisory company. With<br />
five global offices and 500+ staff, we<br />
inform and inspire our clients through<br />
powerful data, empowering technology<br />
and high-impact consulting. All designed<br />
to help our clients make better decisions<br />
and achieve faster progress.<br />
Savanta offers clients a full range of intelligence services,<br />
including:<br />
Data collection and analysis – access to consumer, business, wealth<br />
& youth respondents globally through a proprietary technology platform<br />
Research and Insight – tailored solutions built using specialists from<br />
Savanta’s Industry and Methodology Practices<br />
savanta.com<br />
Proprietary tech & products – instantly access digital intelligence<br />
about markets, brands and customers. It’s our own technology. And it’s<br />
fast and flexible.<br />
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<strong>Are</strong> <strong>NI</strong> <strong>businesses</strong> <strong>taking</strong> <strong>more</strong> <strong>action</strong> <strong>than</strong> <strong>GB</strong>?<br />
Team<br />
Stephen Palmer<br />
EVP, Financial Services<br />
Stephen has 25 years’ research experience across<br />
financial services and tech and leads the financial<br />
services team at Savanta. Prior to Savanta, Stephen<br />
was Head of Insight at Kantar Financial Services &<br />
Technology and responsible for delivering<br />
customer experience, brand and segmentation<br />
research. Stephen is a certified member of the<br />
MRS and has sat on the standards board.<br />
stephen.palmer@savanta.com<br />
Ben MacGregor<br />
Director, Client Services<br />
Ben has spent the last 25 years working in financial<br />
services, providing targeted support to some of the<br />
most recognisable global brands across banking,<br />
insurance, payments, wealth, and investment<br />
banking. Recently that has included support across<br />
the ESG journey – from strategies to reach Net<br />
Zero to corporate reputation work. Ben moved to<br />
Savanta at the end of 2021 to support the growth<br />
of the financial services business.<br />
ben.macgregor@savanta.com<br />
Helen Davey<br />
Director, Financial Services<br />
Helen has <strong>more</strong> <strong>than</strong> 20 years’ research experience gained<br />
agency side and has worked in the MarketVue Business<br />
Banking team since 2016. Helen has considerable<br />
experience in managing large scale complicated<br />
syndicated research<br />
helen.davey@savanta.com<br />
Shweta Bharati<br />
Senior Executive, Financial Services<br />
Shweta joined Savanta with 8 years of experience<br />
working in Market Research across all industry sectors.<br />
She previously worked for Dynata’s India Operation;<br />
mainly specialising in quantitative projects. She has a<br />
BSc (Hons) degree from Patna University in<br />
Biotechnology and a Masters in Business Management<br />
from JRE College of Institutions.<br />
shweta.bharati@savanta.com<br />
Philippa Whitham<br />
Senior Director, Financial Services<br />
Philippa has <strong>more</strong> <strong>than</strong> 20 years’ research experience<br />
gained agency side and has worked in the MarketVue<br />
Business Banking team since 2014. Philippa has<br />
considerable experience in managing large, complex<br />
continuous research programmes, with particular<br />
expertise in customer satisf<strong>action</strong>.<br />
philippa,whitham@savanta.com<br />
savanta.com<br />
9
etter.decisions@savanta.com<br />
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