Almost eight out of 10 larger companies see net zero as a “strategic priority” for the year ahead, despite political pushback on this issue.
This research also found that more than a third (35 per cent) of SMEs see this as a priority, despite facing fewer regulatory pressures around action on this issues.
This Net Zero Business Census covered over 2,000 businesses in the UK, and was supported by a number of business organisations including the British Business Bank and the British Chambers of Commerce.
The report into attitudes by corporate leaders shows that companies believe progress on net zero can go hand in hand with value creation. Only 3 per cent of large organisations believe net zero has no business benefits, rising to 25 per cent among SMEs.
As businesses step up their net zero commitments, a greater emphasis is being put on collecting emissions data throughout supply chains, as a critical first step to identifying and implementing meaningful reductions.
This is reflected in the reports, with over half of large UK organisations (51 per cent) having received requests for carbon data from customers or as part of tender applications, rising to 62 per cent among those exporting to international markets.
Even among SMEs, 37 per cent of medium-sized businesses, 20 per cent of small businesses and 8 per cent of micro-businesses have been asked by customers for carbon data in the last 12 months.
The report also identified a number of “persistent roadblocks” that are holding back business progress on net zero.
These include costs, cited by 80 per cent of respondents and regulatory uncertainty, mentioned by 70 per cent of respondents as an issue. A similar proportion (69 per cent) also mentioned the lack of finance or grants to help with green adaptations.
Based on these survey findings, the report sets out clear recommendations to ensure businesses can play their part in delivering the UK’s 2050 net zero target.
It calls on policymakers for greater regulatory clarity and standardisation, including the swift publication of UK Sustainability Reporting Standards and Streamlined Energy and Carbon Reporting updates and reference to upcoming international standards such as the ISO net zero standard (ISO 14060).
The report also calls for expanded access to financial mechanisms – such as grants and proposed “Help to Green” vouchers – to support SMEs in starting carbon reduction projects. Capacity building with SMEs could also be achieved through government and industry partnering on a major communications campaign to raise awareness with SMEs of trusted guidance like the UK Business Climate Hub, while investment in targeted training can build carbon emission measurement and reduction capabilities across SME workforces.
The report has been delivered by the UK Business Climate Hub in partnership with Planet Mark, Sage, and a coalition of more than 50 leading business organisations, including the British Business Bank and the British Chambers of Commerce.
Planet Mark policy director Andrew Griffiths says: “Although the political consensus on climate action is destabilising, British businesses are still clearly committed to net zero. When leaders look at the evidence and think about long-term strategy, it is becoming increasingly apparent that the businesses that act today to enhance efficiency, reduce emissions and build resilience to environmental impacts are setting themselves up for success in a more sustainable future.
“These landmark reports show how the private sector can lead the net zero transition in the UK. It also highlights how small and mid-size companies that can demonstrate their action on climate change can gain a competitive advantage, as committed larger businesses find ways to tackle their supply chain impacts.”
Sage senior climate manager Henrik Mics adds: “It is positive that the data illustrates progress towards net zero action amongst businesses, but it also highlights the significant challenge that still exists to align with a 1.5-degree world. As a result, this dataset provides vital information to support the drive for faster and more targeted policies and action.”
