SME Nature-Positive Finance Achieving benefits for the environment through environmental investment and reporting

Business development is a dynamic landscape and securing external financing is often a crucial stepping stone for growth. Encouraging greener investment can embed the environment as a key driver in encouraging positive outcomes by investing in the future.

The SME Nature Positive Finance project is aimed at supporting Small and Medium-Sized companies (with 1 - 249 employees) and their investors to incorporate nature-positive principles, practices and measurements into their decision-making. Our research found that in many cases, SMEs don't have the in-house resources that larger organisations have (e.g. an in-house sustainability or compliance officer). Meanwhile, financiers and SME support organisations are not yet aligned on what nature-positive investment means. More awareness is required to encourage better support and financing to fund SME innovation on net-zero and nature-positive.

Here you can access the case studies from the NERC-funded research project SME Nature-Positive Finance. Our case studies shed light on:

  • Early-stage SMEs journeys in obtaining external financing
  • SMEs navigating challenges in accessing finance for nature-positive innovation
  • Aligning with environmentally conscious investors through shared metrics
  • The evolution of SME investors in becoming 'nature-positive'

In collaboration with:

SME Nature-Positive Case Study Sectors

What can we learn about how SMEs innovating around nature-positive business models operate. Insights from our case study different sectors:

  • Novel approaches in finance
  • Agri-food
  • Freight and Logistics
  • Planning and Construction (BNG)
  • Fashion and textiles
  • Environmental measurement and tech services

Agri-food cases

East Hall Farm, Hertfordshire

East Hall Farm utilises regenerative agriculture for food production that provides nature benefits for nature. The farm was the UK's first certified B Corp and is Leaf Marque certified.

Freight and logistics case studies

BioTrain, West Midlands

Ultra-Light Rail Partners (ULRP) BioUltra Railcar/Tram design was funded through three Innovate UK grants; it is the successor to the previous PPM innovative vehicles. In 2020, ULRP successfully completed an IUK grant project to convert a tram to run on Biogas and a subsequent grant to design a 120-passenger BioElectric railcar/tram, using biomethane to generate green electricity. ULRP offers a unique combination of skills to meet the challenges of clean transportation, addressing climate change low emissions and biodiversity through the elimination of ‘Oslo Effect’ tyre particulate emissions.

Oxwash, Oxford

Oxwash is a logistics-centered laundry service. Initially, involving low-carbon electric bike collection and delivery services to address net-zero, the company has extended to an EV fleet and the use of hi-tech dry-cleaning equipment and AI to extend garment life cycle, reduce water use, waste and energy use, increase renewable energy proportion, reduce chemicals and eliminate microplastics.

Frisco Bikes

This venture has a mission to assist national grid renewable energy solutions within urban locations and employ ex-offenders. The sustainability concept is inspired by increasing requirements for efficient e-bike rental solutions within urban areas, which will support the grid network. This is achieved through their patent pending wireless e-bike docking station which has solar panels and battery storage and will support, rather than burden, national grid energy supply - offering a renewable energy solution. Docking stations contain lockers with helmets, to comply with any future legal safety requirements.

Kymarail

Specialising in Overhead Line Electrification (OLE) transition to meet Net Zero for UK Network Rail, Kymarail uses new tech approaches and looks at what can be done better using software and hardware. The company’s sustainable innovative approach utilises AI to deliver more efficient railway infrastructure design and incorporate environmental elements into their design measurement.

Environmental measurement and tech services

Here we showcase some of the leading-edge tech innovations that can help you measure and report your nature impacts.

Nature Metrics (eDNA)

Nature Metrics provides of scalable nature intelligence, powered by environmental DNA (eDNA) surveys, metabarcoding and other methods.

Case study coming soon...

EnrichGeo

The company’s niche role is to develop technical applications and solutions to facilitate more economically efficient and environmentally sensitive farming practices in emerging African economies (e.g. Cameroon, Kenya, Ghana and Nigeria). This includes the use of geospatial satellite information, drone footage and soil testing to provide clear guidance on the most suitable crops for the soil, terrain and climate. Currently, they work with 200 farms but have plans to roll out their pilot work to 4,000 farms in Nigeria in 2024. A critical issue is to reduce food waste and secure more stable cash crop international markets, notably by supporting exporting between Nigeria and the UK. However, this will require the development of a verifiable and traceable green supply chain which supports regulatory requirements for the production, storage and delivery of perishable food products.

Our research questions

RQ1. What is the current understanding amongst SME investors regarding approaches to measuring and reporting on biodiversity?

RQ2. How do SME innovators who are developing new business models for nature positivity and net zero currently report on their impacts?

RQ3. How do SME innovators who are developing new business models for nature positivity and net zero currently report on their impacts?

RQ4. What are the effective ways to assist SME investors and investees seeking nature positivity and net-zero? How do investors collaborate to develop common approaches that reverse biodiversity depletion?

Contact details

If you are interested in knowing more about the project or want to discuss ways the research team can work with your organisation in nature-positive SME financing solutions, please contact Robyn Owen (PI) r.owen@mdx.ac.uk or Amy Burnett a.burnett@mdx.ac.uk