SMEs and the environment - relationship reviewed
A consultancy report carried out by Ecotec for the European Commission's environment directorate claims that the EU still needs to do more to understand how much pollution is caused by small and medium sized enterprises (SMEs). Questionnaires were sent out to Member States in February 1997 following the Informal Environment Council on SMEs in April 1997 under the Dutch presidency. The final report, which was completed in February 2000, concludes that targeted programmes which emphasise how businesses can save money through pollution reduction work best. SMEs' awareness of environmental issues is low, 'even in the more 'advanced' Member States', the report finds. This is in spite of evidence that SMEs make a considerable contribution (around 50 per cent) to pollution and waste in the EU. The main barriers to SMEs introducing environmentally friendly improvements include: -lack of time/staff resources -lack of financial resources -lack of understanding of environmental problems and risks -lack of understanding of the potential benefits of environmental improvements -economic short termism -lack of expertise/confidence lack of access to appropriate information -the view of environmental activity as peripheral to the core business -initiative fatigue/overload. According to report, the EU should prioritise consistent collection of data, test future environmental legislation for ease of use by smaller firms, and offer them specific assistance to improve their performance. It also recommends that future environmental legislation is tested on its user-friendliness, allowing SME issues to be given due consideration, and providing incentives for cost-savings so that enterprises, including SMEs can improve their competitiveness. The report stresses that most Member States have not collected data on SME pollution, though both Eurostat and the European Environment Agency are trying to improve the situation. Although the survey indicates dissatisfaction with the EU's SME and environmental policies, attention should be drawn to the fact that only six Member States replied to the questionnaires. The information provided therefore, whilst useful, gives a very incomplete picture of the SME situation in 1997.