Study shows rise in environmentally sustainable economic growth

Joint research published by East Midlands Chamber and the University of Derby has found that ‘green growth’ activity in the region has tripled in almost a decade.

Environmentally sustainable economic growth from businesses in the East Midlands is three times higher than it was in 2015, according to the Green Growth Trends study.

The research tracks and analyses awareness and engagement with green growth, decarbonisation, and the uptake of nature-based solutions, based on responses from businesses in the chamber’s Quarterly Economic Survey.

Findings for 2024 reveal a seven per cent increase from 2023 in East Midlands businesses achieving turnover from the supply of green goods and services, while more than 45% businesses in the region invested in decarbonisation initiatives over the past 12 months, an increase of six per cent since 2023.

The research highlights significant difference in green growth activity based on the size of a business.

Three quarters of large businesses in the region pursue green growth activities but only half of small businesses do, while for micro businesses the figure drops to four out of ten.

Richard Blackmore, director of policy and insight at East Midlands Chamber, said: “With COP29 just behind us, the publishing of this report is timely and gives assurance, on one hand that East Midlands businesses are prioritising playing their part in the journey toward Net Zero, while also highlighting how much further they still need to go.

“Smaller businesses tend to be behind larger businesses, according to the findings of this research, where fewer staff and more limited resources may create a greater challenge, but it’s important that firms keep going with that mission toward becoming more sustainable and reducing their carbon footprint.”

Dr Polina Baranova, associate professor of strategy and sustainability at the university’s Derby Business School, said: “Seeing a seven per cent lift in East Midlands businesses benefiting financially by actively pursuing green growth is really encouraging, especially as there’s limited support nationally for businesses on their green growth journey.

“Larger businesses are well on their way, but micro businesses are lagging behind with just four out of ten embracing green growth.

“It’s important that businesses resist ‘climate fatigue’ and don’t pull back from their effort to embrace and gain from green growth.

“With 10% fewer businesses engaged in green growth than in 2023, the need to keep it high up the list of priorities is clearly underlined.”

To view the Green Growth Trends report in full, visit https://www.emc-dnl.co.uk/wp-content/uploads/2024/11/Green-Growth-Trends-Report-2024-final.pdf.