SMALL firms in Yorkshire that have yet to grasp the business opportunities created by “going green” are missing out on a potential £5.7 billion of economic growth in the next three years.

That is the conclusion of new research from Lloyds TSB Commercial which questioned 125 Yorkshire businesses with a turnover of less than £15 million. It discovered most of the region’s small firms (91 per cent) had taken some steps towards becoming more environmentally sustainable.

And almost a third (30 per cent) of small and medium-sized enterprises (SMEs) had already seen their business grow by an average of 13.25 per cent over a three year period solely as a result of green initiatives.

But the research also indicates that those SMEs that have not embraced the sustainability agenda (nine per cent) could be missing out £5.7 billion of economic growth in the region.

John Robson, regional director for Lloyds TSB Commercial in Midlands and North, said: “It’s no secret that smaller, private-sector firms will be one of the main drivers of the economic recovery this year.

“However, many Yorkshire and Humber businesses may not have realised the wealth of opportunities open to them by becoming a more sustainable business.

“As well as reducing overheads and operating costs, becoming more sustainable will give many firms in Yorkshire and Humber a competitive edge, enable them to pitch for contracts with strict environmental criteria and enhance their reputation. It may also mean they can target new markets and consumers, or develop new products and services.”

He described as “fantastic” the fact that most firms had taken some steps. “But it is a worry that some businesses have shunned the idea altogether. As the economy begins to recover, those SMEs that do not assess their environmental policies and the opportunities in the green marketplace could miss out on their slice of billions of pounds of growth.”

Out of the 91 per cent of small businesses that have taken some steps towards becoming more sustainable, in Yorkshire most had improved efficiency by reviewing energy usage (74 per cent). The second most popular step (72 per cent) was to implement new company policies and 58 per cent of firms questioned provided employee training in sustainability.