Businesses shouldn’t have to choose between profit and purpose. At PE, we see them as a flywheel: profit enables purpose; purpose makes profit more resilient. This guide pulls together the latest data to show where the two reinforce each other – and how SMEs can act now.

Why this matters (in numbers)

• SMEs are the backbone of the UK economy: at the start of 2024 there were 5.45 million small businesses and 37,800 medium-sized firms; SMEs make up 99.8% of all UK businesses.
• Collectively, UK SMEs are responsible for around half (43–53%) of business-related emissions—so small actions at SME level add up to big national impact.
• Consumer demand is shifting: in 2024, people said they would pay ~9.7% more for sustainably produced or sourced goods. Products with sustainability claims are also growing faster than peers.
• Talent cares: in LinkedIn’s 2024 Workplace Learning report, 7 in 10 people said learning improves their connection to the organisation and 8 in 10 said it adds purpose to their work—both linked to retention.

The business case: purpose drives profit

• Studies continue to link purpose and performance: companies improving sustainability while growing tend to outperform peers in shareholder returns. Purpose-driven cultures also correlate with higher engagement and productivity.
• Customers and big buyers are asking for data. 37% of UK SMEs received a request in the last 12 months to supply carbon-emissions data for tenders or customers. Public procurement has also tightened: for major central government contracts, suppliers must publish a Carbon Reduction Plan and commit to Net Zero (PPN 06/21).
• Energy costs remain a structural pressure for many SMEs. Government support under the Energy Bills Discount Scheme ended on 31 March 2024, which means efficiency and smarter purchasing now matter even more.

Bottom line: purpose isn’t a “nice to have”—it’s becoming a route to revenue protection (winning tenders), margin (efficiency), customer preference, and retention.

Quick wins that pay back (fast)

If you only do three things this quarter, do these:

1.Measure the baseline (lite): Capture your electricity/gas/vehicle use and major purchased goods/services. Even a simple year-on-year view helps you spot the biggest levers—and prepares you for customer data requests (Scope 3 can be 70%+ of a company’s footprint).

2.Fix lighting first: In retail, hospitality and offices, lighting can be up to 50% of electricity use. Switching to LEDs and better controls can cut lighting energy by 65–85% with quick paybacks.

3.Low-/no-cost behaviours: The Carbon Trust has long found SMEs can save 20–30% on energy bills with simple actions (switch-off routines, controls, maintenance) plus targeted tech upgrades.

Beyond quick wins: make purpose operational

• Procurement readiness: If you sell to the public sector or larger corporates, align early with PPN 06/21 (publish your Carbon Reduction Plan, commit to Net Zero). It de-risks tenders and shortens sales cycles.
• Employee proposition: Link learning with your sustainability roadmap (e.g., carbon literacy, energy-saving best practice). This builds purpose and supports retention.
• Marketing that matches reality: With consumers willing to pay a premium for sustainable goods, make your improvements visible—but evidence-based (publish your fuel mix, reduction projects, certifications).

How PE can help (practical, transparent, SME-friendly)

• Clarity on tariffs & energy mix: We’ll help you choose the right contract for your risk profile and goals, and we’re transparent about what makes a tariff “green”.
• Energy Saving Guides & site walk-throughs: Identify fast-payback measures (LEDs, controls, timers, HVAC tuning). We prioritise actions with the strongest £/kWh impact first. (Carbon Trust guidance shows these typically deliver substantial ROI.)
• Simple measurement & reporting: We’ll help you track usage and build a light-touch footprint you can share with customers or tenders (aligned to the expectations behind PPN 06/21 and supply-chain Scope 3 requests).

 

A practical 30-60-90 plan for SMEs

• Days 1–30: Collect last 12 months’ bills, list major energy uses, pick two quick wins (e.g., LED pilot, timer schedules).
• Days 31–60:Roll out LEDs/controls across priority areas; train staff on switch-off and setpoint discipline; start a simple usage dashboard.
• Days 61–90: Publish a one-page Carbon & Energy Action Plan (targets + actions); capture supplier/customer requests for emissions data; line up the next investment (e.g., refrigeration/HVAC optimisation).

Profit vs purpose is a false choice. With tight margins and rising buyer expectations, purpose-led efficiency is one of the fastest ways to protect cash flow and win business.