Where to find support to become a sustainable start-up

Help tackle issues such as climate change with our guide on where to find support to be a more sustainable start-up business.

Starting a sustainable business can be a rewarding experience, both commercially and positively impacting the environment and local communities.

With climate change, ethical working practices and plastic use at the forefront of consumers' minds, knowing where to look for support and funding is an important part of launching a sustainable business.

There are good reasons why start-ups should explore sustainable ways of working.

Smaller businesses account for around half of the total greenhouse gas emissions from all UK businesses.

It may make commercial sense, too. Smaller businesses can potentially recoup the money spent on making their business greener, such as switching to LED lightbulbs, within as little as one year, according to CPD data.

The type of support available for sustainable start-ups varies depending on your location and business type.

However, there are numerous grants, loans and support programmes that offer advice available to help your business become more environmentally friendly.

Learn with Start Up Loans and help make your business born sustainable.

Thinking of starting a sustainable business? Check out our free online courses in partnership with The Open University on environmental decision-making and how organisations impact the environment.

Our free Learn with Start Up Loans courses include:

Plus free courses on climate and sustainability, teamwork, entrepreneurship, mental health and wellbeing.

Support and advice for sustainable start-ups

There are numerous organisations and government-backed initiatives available for start-ups and smaller businesses and these include:

UK Business Climate Hub - developed by the UK government, this sustainability hub includes useful tools for businesses looking to reduce their carbon emissions. Businesses can optionally sign up to commit to taking action on climate change.

Carbon Trust - a dedicated hub for small businesses that provides tools to measure carbon emissions and advice on how to make changes, such as changing lighting or switching to electric vehicles.

Energy Saving Trust - dedicated to supporting communities, local authorities and businesses, the Energy Saving Trust provides practical advice on topics such as installing renewable energy and how your business can become more energy efficient.

YouGen - an independent resource for finding environmental suppliers suitable for small businesses, such as solar panel and wind turbine installers from across the UK.

Federation of Small Business - provides practical advice on small business operations, such as reducing water usage and transport emissions.

British Chambers of Commerce - with chambers operating across the UK, the British Chambers of Commerce network provides access to its Net Zero Hub, including green savings calculators, events and information about net zero for smaller businesses.

Learn with Start Up Loans - Start Up Loans has partnered with the Open University to deliver a free programme of online learning courses covering a range of environmental business issues, such as environmental decision making and sustainability in the workplace.

Financial support for sustainable start-ups

Several schemes offer loans and grants to help improve energy efficiency or to help introduce environmentally friendly schemes such as switching to electric vehicles.

Grants can be a great way for start-ups to access funding that helps pay for new technology or improve energy efficiency. Grants are a cash injection that, unlike loans, don't have to be paid back. There are usually strict criteria in place, such as where your business is located or what you can spend the grant money on, and you'll often have to go through an application process to be awarded a grant.

Grants and loans

There are numerous grant and loan schemes available, and the list below contains examples only and is not exhaustive. You can contact different financial institutions, local councils and organisations to find out what loans or grants are available. Always seek independent financial advice to help you determine the pros and cons of each potential option and whether either option is suitable for your business.

Ofgem - provides a one-stop summary of some of the UK-wide business energy schemes, loans and grants available, as well as specific grants and initiatives run by energy suppliers across the UK.

Local councils - many grants and loans are available for start-ups directly from local councils, and initiatives can vary depending on location. Use the government's local council finder tool to visit your council's website to see what local grants may be on offer.

Energy Saving Trust - a directory of up-to-date grants and loans that focus on green funding initiatives, such as financial support for small businesses in Scotland to purchase used electric vehicles.

Grants Online - specialist free-to-use sites such as Grants Online offer directories of grants and schemes that support smaller businesses, including a search tool so you can find grants available in your local area or by type of business.

Business Finance Support portal - operated by the UK government, this searchable portal lists nationwide schemes available for grants and initiatives designed to support business, including funding to increase energy efficiency or invest in lowering carbon emissions.

Boiler Upgrade Scheme - launching in Spring 2022 and operated by Ofgem, the government-backed scheme offers capital grants to businesses needing financial support to install heat pumps to replace fossil fuel heating systems.

Smart Export Guarantee - aimed at businesses using renewable energy and low-carbon energy generation technology, it allows businesses to export unused electricity back to the National Grid and get paid for the surplus energy exported.

Natural Environment Investment Readiness Fund (NEIRF) - operated by the Environment Agency, this fund provides businesses with grants of between £10,000 and £100,000 for projects that support the development of environmental projects within the UK.

Learn with Start Up Loans and help get your business off the ground

Thinking of starting a business? Check out our free online courses in partnership with The Open University on being an entrepreneur. Our free Learn with Start Up Loans courses include:

Plus free courses on finance and accounting, marketing, project management, management and leadership.

Disclaimer: The Start -Up Loans Company makes reasonable efforts to keep the content of this article up to date, but we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. This article is intended for general information purposes only and does not constitute advice of any kind, including legal, financial, tax or other professional advice. You should always seek professional or specialist advice or support before doing anything on the basis of the content of this article.

The Start-Up Loans Company is not liable for any loss or damage (foreseeable or not) that may come from relying on this article, whether as result of our negligence, breach of contract or otherwise. “Loss” includes (but is not limited to) any direct, indirect or consequential loss,  loss of income, revenue, benefits,  profits, opportunity, anticipated savings, data. We do not exclude liability for any liability which cannot be excluded or limited under English law. Reference to any person, organisation, business or event does not constitute an endorsement or recommendation from The Start-Up Loans Company, its parent company British Business Bank plc, or the UK Government. 

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