A new government backed review has issued ten new recommendations to help UK small businesses unlock the ‘transformative’ growth opportunity from embracing sustainability.
The Willow Review is a new independent review which aims to show how sustainability is financially beneficial for the UK’s 5.5 million small businesses, by demonstrating how adopting sustainable practices can drive profitability, innovation, and long-term growth.
At the heart of these recommendations are calls to simplify small business sustainability action plans, champion a more positive, solutions-focused narrative and improve access to finance, as well as pooling best-practice expertise and resources.
“Sustainability is great for the small business bottom line and brings tremendous potential to transform growth for small firms and the wider UK economy, as well as being vital for the planet too, said Michelle Ovens CBE, Founder of Small Business Britain and co-chair of The Willow Review.
“These new recommendations by The Willow Review are a critical step forward in supporting small businesses on this journey to unlock the opportunity of green growth. We look forward to working with businesses, government, and financial institutions to drive positive change.”
Gareth Thomas, Minister for Small Business and co-chair of The Willow Review, said: “Small businesses are the engine of the economy helping to drive growth, which is why this review is an important step towards providing the right support for smaller businesses looking to expand and thrive.
“Through our Plan for Change, this government is committed to further and faster growth, with SMEs at the heart of that, and sustainable initiatives can help get us there.”
SMEs account for approximately 50% of all UK business-driven emissions, according to the British Business Bank, yet uptake of sustainability initiatives across small businesses remains limited due to perceived lack of financial advantages, and concerns about upfront costs.
Since launching in November 2024, The Willow Review has undertaken comprehensive research into the factors driving this. Ahead of a final report in June 2025, it is initially proposing ten far-reaching recommendations across financial service institutions, government and the UK’s small business community, to encourage a ‘mass shift’ in small business sustainability adoption over the next five years.
Following these initial recommendations The Willow Review will continue further research, driven by specific Taskforces to be established ahead of the publication of a final report in June 2025. This will include fuller recommendations and outline the financial case for sustainability, supported by real-world data and practical insights.
To help smaller firms easily identify cost savings and adopt changes that will boost their growth, The Willow Review is set to develop a recommendation to create a simple ‘five-point sustainability plan for small businesses’.
Further recommendations also include how action by government, financial services and business support organisations can facilitate SME Sustainability Networks to help small firms share best practice through mentoring programmes and peer networks.
The Willow Review is exploring the role for financial institutions to boost support for small businesses to help them understand the commercial advantage of going green, including the role for greater sustainable business planning and education around green finance, as well as exploring future financing innovations in this area as SME demand grows.
The Government is also being called upon to support access to finance by improving visibility, accessibility and provision of sustainability grants. This includes simplifying existing application processes and signposting, as well as considering adapting current funding initiatives, such as extending ‘Start-Up Loans’ to encompass new ‘Green-Up Loans’ to support small businesses to make necessary transitions.
In addition, The Willow Review also recommends the government reframes current sustainability messaging to better engage SMEs, with a more positive focus on growth, competitiveness, and profitability rather than compliance, as well as encouraging uptake of existing resources, such as the UK Business Climate Hub.
Greater grassroots support is also proposed to provide tailored support for SMEs, with suggestions to establish local council sustainability champions to help forge local connections, such as around funding. This would also include supporting SMEs in transitioning to green energy usage by engaging landlords as facilitators.
The Willow Review highlights the importance of Government developing long-term consistency and clarity around policy and regulation as it impacts SMEs, ensuring that they can have confidence in their sustainability efforts.