Small and medium-sized businesses are cutting back on environmental measures because of the recession, according to a survey of 7,000 firms by NetRegs.gov.uk.

The survey revealed that only one in four small businesses plan to invest in improving their environmental performance next year and found a 75% drop in the number of businesses with an environmental management system (EMS) in place.

This is despite evidence that organisations with green credentials are more likely to win new business.

"Many companies in the supply chain now include specific environmental questions in their tender forms, so by building measures into your business plan, training your staff and taking an environmentally responsible stance throughout your business, you will reap the rewards of winning more work," said Debbie Chatting of NetRegs.gov.uk.

The survey also found that just 7% of companies questioned thought their business undertook activities which harmed the environment, despite evidence showing that the actual figure is actually 46%.