Many smaller employers are unsure of what they need to do to reduce their impact on the environment and boost their green credentials, it has been claimed.

According to the environmental guidance provider NetRegs and the Institute of Directors (IoD), a "great majority" of small firms are unaware of what they should be doing in terms of environmental policies.

Alexander Ehman, head of parliamentary and regulatory affairs at the IoD, said many small companies do want to reduce their carbon footprint and become more environmentally friendly.

But NetRegs spokesman Richard Martin explained: "They don’t have enough people to allocate to this sort of thing. They are very much into making sure that their cash flow is OK, they are looking at tax problems and health and safety and employment law, so environment tends to be a low priority."

According to, small businesses could cut their energy bills by 20 per cent if they encourage employee to switch off lights and computers in the evening and make the most of natural light during the day.