Some businesses still misunderstanding what net zero means, research finds

Some businesses may still be misunderstanding what net zero means, researchers have found.

The UK Net Zero Business Census, a major new survey backed by the Government that aims to track the private sector’s progress, gathered responses from 2,005 UK organisations over the last few months.

Publishing the inaugural census results on Wednesday, the organisers said 66% of respondents said they have set some form of target, with a further 12% planning to set one within the next 12 months.

But the results also showed 24% of businesses said their target was to reach net zero within five years and a further 4% said they aimed for 2024 or earlier.

Reaching net zero involves reducing greenhouse gas emissions as much as possible before “offsetting” any remaining hard-to-abate emissions as a last resort, with many governments and organisations worldwide aiming for net zero by 2050.

It differs from carbon neutrality where all carbon emissions can be theoretically balanced out by buying offsets, which means putting money towards projects like reforestation, renewable energy or carbon-storing agricultural practices.

Andrew Griffiths, director of policy and corporate development at Planet Mark – which led the survey alongside the UK Business Climate Hub, said: “We did notice something within the data that suggested there may be still, understandably, a misunderstanding of what net zero means for an organisation.”

The researchers found 10% of those answering the 10-question survey on behalf of the organisation were sustainability professionals, while 90% were not.

“Within those that were not, there was a decent chunk who had said that their net zero target was 2024 or earlier, which would be impressive,” Mr Griffiths said.

“Compare that to the sustainability professionals reporting, none said it would be 2024 or earlier as a net zero target and only 1% had a net zero target before 2030.”

He said the research suggests sustainability professionals “were more likely to have “realistic and achievable” net zero targets.

“It shows the value of education and the role that sustainability professionals play within organisations,” he added.

The research found that large organisations with more than 250 employees were nearly twice as likely to have a sustainability professional responding compared to small and medium-sized enterprises (SMEs).

Martin Baxter, deputy chief executive at the Institute of Environmental Management and Assessment – which represents sustainability professionals, said: “There is definitely evidence within the census that some non-experts are setting targets without really knowing the level of change that is required, across a whole organisation, in order to achieve ‘credible’ net zero.

“Until they really delve into understanding the interdependencies and internal barriers that exist and need to be overcome – many of which are financial in nature – even sustainability experts often do not know the decarbonisation challenges within a business.”

To tackle the issue, the researchers recommended policymakers work with industry associations and others to improve access to training that can help organisations understand net zero requirements and build internal expertise.

They also said businesses, organisations and industry bodies should invest in educational support to enhance staff understanding of net zero goals.

Elsewhere, 73% of respondents reported net zero to be a strategic priority in the next 12 months.

However, more than half said they faced barriers, including high costs (59%), limited access to finance (52%), time constraints (52%), outdated infrastructure (53%) and regulatory uncertainty (50%).

The researchers recommended the Government work to establish clear, long-term regulatory timelines that can provide the private sector with stability and confidence for investment in net zero initiatives.

Ed Lockhart, convener of Broadway Initiative – who manage UK Business Climate Hub, said: “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.”

Mr Griffiths said: “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.”

The PA news agency has contacted the Department for Business and Trade for comment.