New insights from the UK Net Zero Business Census highlights 46 per cent of organisations, including 37 per cent of SMEs, having received requests for carbon data from customers.
Despite this, the census uncovered a growing amount of engagement with net zero among businesses, but progress towards target setting and achieving is varied. The growing demand for accurate carbon data from customers emphasises pressure on organisations to demonstrate accountability and awareness of their associated emissions across Scope 1, 2 and 3.
The survey, which interviewed over 2,000 UK businesses of varying sizes, uncovered just 33 per cent of respondents having currently measured a full baseline of their carbon footprint. Without understanding the scale and source of your organisation’s emissions, implementing impactful net zero strategies is significantly hindered.
Financial and regulatory barriers
59 per cent of respondents cite high costs as the most common barrier to net zero initiatives. Despite this, only 25 per cent of organisations reported having accessed government grants and funding designed to support corporate net zero transitions, demonstrating a lack of information encouraging the uptake of these resources. Whether it’s awareness or ability that prevents access isn’t clear, but campaigns raising awareness of these resources is essential for bridging the gap and encouraging businesses on their net zero journey.
In terms of the solution, the Census highlights government-backed low-interest loans and grants, particularly those related to energy efficiency technology, would be a key support mechanism.
In addition, the establishment of succinct, long-term regulatory frameworks would instil confidence in organisations to act on net zero, creating the impression of a more stable initiative. In total, 50 per cent of organisations claim policy uncertainty is a moderate to significant barrier. In particular, investment in renewable energy and efficiency measures is the most common action identified, with 59 per cent of organisations having already made steps in this category.
Carbon footprinting and information tools
A clear grasp on Scope 1, 2 and 3 emissions is likely to promote urgency and action among organisations aiming to instigate net zero plans. 52 per cent of organisations claim to have already established at least a partial baseline, with 29 per cent “planning to do so” in the next 12 months.
Accessing the right education and skills in order to deliver on this is a key tool for progress. Organisations with dedicated and skilled teams working on gathering accurate carbon data are more likely to develop and deliver impactful strategies and report on them transparently.
Get to grips with your carbon data. Enrol on one of our Journey To Net Zero Cohorts today. Find an example of how we gave Swiscot the confidence to report on their emissions and take action here.
As for the UK’s progress, UK territorial emissions sat at 836 MtCO2e in 1990, down to 423 mtCO2e in 2023 with a target of 268 MtCO2e by 2030. The energy sector plays a key role in this, driving the majority of emissions reductions over the past decade. According to the UK government, renewables generated a record 48 per cent of the nation’s electricity in the first quarter of 2023, an increase of 7 per cent on 2010 figures.
Improving the quality and availability of information related to renewable energy technologies and how organisations can implement these into their supply chains is a necessary step to enhance the potential of these resources. Overall, appetite for these technologies is high, but application still lags behind.
