The UK Net Zero Business Census has found that organisations recognise net zero as essential, but high costs, policy uncertainty, and skills gaps are leaving many unsure about the path ahead.
The report of 2,005 organisations across all sizes and sectors has been produced by UK Business Climate Hub (UKBCH) in partnership with Planet Mark and 50+ of the largest business associations, banks and corporates, including CBI, Make UK, Institute of Directors and the British Chambers of Commerce. The results explore the current priorities, plans, barriers, opportunities and actions to decarbonise being used by organisations on their journey to net zero.
With 73% of respondents reporting that net zero is a strategic priority in the next 12 months, the census provides recommendations for policymakers, organisations, industry bodies and researchers to help propel the UK economy towards its legal requirement of reaching net zero by 2050. To support this commitment, 65% of respondents had set targets to reach net zero by 2050, with 48% aiming to achieve net zero within the next decade, before 2035.
Despite this, organisations report significant barriers hindering progress, including high costs (59%), limited access to finance (52%), time constraints (52%), outdated infrastructure (53%), regulatory uncertainty (50%) and lack of trusted information sources (46%).
To overcome these barriers, 92% of organisations said improved government support would be beneficial. By working in partnership with business and finance to establish clear, long-term regulatory timelines, government can provide stability and confidence for investment in net zero initiatives, further helping to address many organisations’ policy uncertainties. This support is particularly needed by small and medium-sized enterprises (SMEs), who are being indirectly affected by carbon disclosure regulations cascading down to impact them via supply chains, with 37% of SMEs having been asked for carbon data by a customer, compared to 55% of large organisations.
Ed Lockhart, Convener of Broadway Initiative who manage UK Business Climate Hub said: “The leadership shown by many UK organisations in the census is deeply inspiring, helping accelerate our collective progress towards a more sustainable future. Despite these significant strides, substantial challenges remain, particularly for small and medium-size enterprises who often lack the same access to resources available to larger organisations. To address these disparities and drive collective action for all, we recognise the need for greater partnership between government and business to develop sector-specific decarbonisation pathways and guidance, as well as enhanced financial mechanisms and expanding trusted information resources such as the UK Business Climate Hub. Such measures are crucial for ensuring a smooth and effective transition towards a net zero economy.”
Andrew Griffiths, Director of Policy & Corporate Development at Planet Mark said: “With 73% of respondents saying net zero is a priority for their business strategy within the next 12 months, UK businesses have made their intent clear. At Planet Mark we see this every day through our 800+ Member organisations who we support to measure and reduce their carbon emissions annually, so seeing this commitment reflected nationally is extremely positive. The findings also send a clear message that targeted support and a stable policy environment is critical for them to implement effective net zero strategies, which the Labour government have a unique opportunity to deliver. We look forward to continuing to collaborate with UKBCH to make net zero accessible to all organisations.”
A free download is available from The UK Net Zero Business Census Report or The UK Business Climate Hub.
Businesses can also access a free library of government-backed resources and guidance on net zero at UK Business Climate Hub here.
Photo: Net Zero Business Census Report.