British green industries are outperforming other sectors, so why does net zero appear to be deprioritised? Here, Amy House, Director of Green Economy reiterates the case for net zero, for UK prosperity, for business growth and for quality, local jobs.

I don’t think I am alone in noticing that the urgency in which we discuss net zero has lessened. Rather than a global race to net zero, language has softened, reference to green has decreased and policymakers appear quieter on the threat of climate change.  

In recent months we have seen Rachel Reeves, Chancellor of the Exchequer announce her spring budget with no mention of climate investment, energy efficiency, or energy security; the US, one of the world’s biggest emitters, withdraw from the Paris Agreement and UN climate deadlines being missed by signatories. 
 
And yet, last year saw global temperatures rise beyond the 1.5 degree threshold with impacts including wildfires, flooding and drought across the globe, impacting communities, supply chains, business continuity and livelihoods. Which begs the question – is this the time to decelerate action? 
 
The UK Net Zero sector continues to grow at pace bringing with it innovation, industry and job creation, whilst sustainability action enables business to secure their energy, boost productivity and seize a competitive edge.  

Environmental responsibility and economic growth  

An efficient economy is one that manages its resources and impact. Both fall under the bracket of environmental responsibility.  
 
The Porter hypothesis, first familiarised in the 90s, claims that well-designed environmental regulations stimulate innovation which, by enhancing productivity, increases private benefits for businesses. Acting in accordance with regulations designed to preserve the environment will not only inspire a redirection of business strategy towards positive impact, but it will stimulate efficient management of resources and innovations which stand the test of time.  
 
As economies and businesses grow, they must also adapt. Systems of management that may have been effective decades ago are not necessarily the correct route of action today, and forward-thinking leaders consider the shifting landscape of global issues, attitudes, and responsibilities.  

Blame game: how impactful is the business sector? 

The industry sector was responsible for 14 per cent of UK emissions in 2022, consumer expenditure was responsible for 26 per cent in 2021, and while the instinct may be to point the finger at the UK’s largest organisations, small businesses are responsible for around half of UK business emissions as of 2021.  
 
Widespread accountability and regulations designed to encourage a collective movement towards net zero are essential for progress, otherwise each time one segment takes a backseat, others are tempted to follow suit. How often do we hear that there is no point in acting if other parts of the world are not? 
 
But business leaders are squeezed particularly in small or medium enterprises – the driving force of local innovation. Impactful and stringent regulations and a well communicated purpose are vital to ensure organisations adapt and reprioritise, acting on net zero not out of fear of scrutiny, but out of desire to build a resilient, green, innovative economy.  
 
We recently hosted a roundtable with BusinessDesk and GM Business Growth Hub, bringing together leaders from North West businesses. The panel spoke about enjoying improved competitiveness, access to new markets and increased customer loyalty as a result of developing robust environmental plans. While businesses called for financial support to accelerate action, they also welcomed the prospect to more robust legislation to drive action across the wider business community.  

Read about it here.

Skills and prospects  

One of the key areas of growth for net zero is the skills sector. Net zero offers up a range of skilled and well-paid jobs across various disciplines with strong career prospects. It isn’t limited to academia and science-led innovation.  
 
According to PwC’s green skills barometer, between 10,000 and 66,000 new tradespeople are needed each year to meet the UK’s growing retrofit demand, across both commercial and domestic properties. Digging deeper into all jobs associated with building retrofit alone, the sector could support as many as 580,000 jobs annually if energy efficiency and green technology maintain or increase their priority.  

Build a forward-thinking business 

Being environmentally aware and actively working towards solving climate issues shouldn’t need to be a hard pitch to business leaders and government decision-makers, but it is. Transitioning to net zero is about innovation and preservation, continuing as we have done for decades will probably do fine for the profits of the few, but limit the chance of a prosperous future for the many.