Results from the first UK Net Zero Business Census have found high costs, policy uncertainty and skills gaps are key barriers for firms to outline their net-zero path.
Some 73% of the 2,005 organisations – representing all sizes and sectors – reported net zero is a strategic priority over the next 12 months, with the results of the census exploring the current priorities, plans, barriers, opportunities and actions to decarbonise being used by organisations on their journey to net zero. The research was conducted by the UK Business Climate Hub in partnership with Planet Mark and more than 50 of the largest business associations, banks and corporates.
Ed Lockhart, convener of Broadway Initiative, who manages UK Business Climate Hub (UKBCH), 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.”
Responding organisations cited several significant barriers hindering progress on net zero. These included high costs (59%), limited access to finance (52%), time constraints (52%), outdated infrastructure (53%), regulatory uncertainty (50%) and lack of trusted information sources (46%).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, according to the report.
It further argued 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.
“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 like the UK Business Climate Hub. Such measures are crucial for ensuring a smooth and effective transition towards a net zero economy,” continued Lockhart.
Andrew Griffiths, director of policy and corporate development at Planet Mark, added: “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 that 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 has a unique opportunity to deliver. We look forward to continuing to collaborate with UKBCH to make net zero accessible to all organisations.”
