Most businesses are reframing their communication on their net zero action to focus on resilience and risk mitigation in response to climate skepticism in media and politics, yet a large majority remain committed to their climate actions, with most anticipating risk and opportunity benefits, and also expect net zero to return as a political priority in the future, according to a new survey by professional services and standards company BSI.
While the survey found that businesses broadly remain committed to climate action, however, it also indicated that most companies admit that policy uncertainty around net zero makes it difficult to invest, and some businesses have revised their transition plans and targets.
For the report, “G7 Net Zero Temperature Check,” BSI polled more than 7,000 business leaders across the UK, U.S., France, Germany, Italy, Canada, Japan.
The report found that a large majority of businesses remain committed to their climate initiatives, despite the less supportive political environment, with 78% of respondents reporting that they will continue to pursue net zero regardless of political uncertainty because it is good for business, and a similar proportion (76%) saying that they are driven by customer or client expectation. Overall, 83% of respondents reported being committed to achieving net zero by their national target.
Notably, 69% of respondents reported that their businesses had actually increased their level of net zero action over the past 12 months, compared with only 4% reporting a decrease, and 38% said that they were confident that they will increase their investment in net zero over the next 12 months, compared with only 25% anticipating a reduction.
The continued commitment to net zero comes as business leaders view climate action as business leaders see upside and strategic value in positioning for the climate transition, according to the survey, with 75% of respondents agreeing that net zero is important for their future business resilience, and 74% reporting that they view the risks of not transitioning to net zero as greater than the risks of transitioning. Additionally, nearly three quarters (73%) of respondents agreed that their business’ continued net zero efforts would give them a competitive advantage if their competitors scaled back action.
Notably, four out of five (79%) of respondents agreed that net zero will be a political priority again in the next decade, leading them to continue to work towards it.
The survey also found that most business leaders are shifting their messaging, with 61% reporting that their businesses had changed the way in which it communicates their net zero initiatives in response to climate skepticism in media and politics, with a shift away from environmental messaging, and towards a focus on resilience, risk mitigation and long-term preparedness.
Despite a broad continued commitment to climate action, the survey did indicate that the political environment was having an impact on many businesses, with 32% of respondents reporting that they have revised their net zero plans, and 33% saying they have reevaluated their targets, including 13% that had dropped their targets, while 76% said that policy uncertainty around net zero makes it difficult to invest confidently. Additionally, 76% of respondents agreed that their businesses will continue to take steps to reduce emissions, but will place less emphasis on a net zero target due to political uncertainty.
While political uncertainty has emerged as a key barrier to companies’ net zero action, it continues to rank below other challenges, with the top issues reported by respondents as an obstacle to progress including cost (26%), lack of available financing to invest in green tech (25%), and a lack of internal skills and knowledge (23%).
Susan Taylor Martin, Chief Executive at BSI, said:
“Recent geopolitical events have brought into stark focus the need for energy security and the important role played by renewable and low carbon energy. They have also shown the importance of adopting a resilience mindset when it comes to climate change, focusing on risk mitigation, supply chain management and future preparedness. What’s clear is that many business leaders are already thinking this way, and have recognised that the cost of not investing in net zero could threaten their operations in the long term.”
Click here to access the report.
