Nearly a third of UK middle market businesses have not yet invoked a sustainability plan or strategy despite the new government’s clean energy and net zero pledges.
Scotland has some of the most ambitious net zero goals in the world, pledging to reach net zero emissions by 2045. The UK government, on the other hand, has a goal to reach net zero by 2050.
According to new research from RSM UK, nearly a third (30%) of businesses still do not have a sustainability strategy in place, with a quarter planning on creating and implementing one in the next 12 months. However, 5% say they have no intentions to create any formal sustainability strategy.
The report also found that a quarter of businesses (24%) have yet to set net zero targets to reduce their businesses’ emissions, even though they could benefit from efficiencies and cost savings.
While nearly three quarters of businesses (74%) have set net zero goals, about a fifth (21%) have not put a strategy or plan in place to reach these targets.
“Our survey shows that almost a third of businesses lack a sustainability plan or strategy, which highlights the need for clarity from government on the transition to clean energy and the role of businesses in supporting this,” Grant Morrison, partner in Aberdeen and head of oil and gas at RSM, said.
“It’s complex, so embedding the energy mix, infrastructure, skills and investment will be key to its success.
“Aberdeen has cultivated a skilled workforce and infrastructure and using this experience to deliver clean power generation will help support the ambitious aims of the recently-established GB Energy, making it the logical choice for the initiative’s headquarters.
“Retraining, up-skilling and deploying the city’s workforce, while drawing on its strategic location, research institutions and current renewable projects, presents an opportunity for Aberdeen to be a pivotal part of the UK’s energy transition.
“Although the government has established a climate change strategy, what’s missing is a wider industrial strategy which outlines how the key energy sources and investment framework, including R&D and tax incentives, will deliver change in conjunction with GB Energy.”
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Rich Hall, partner and head of sustainability at RSM, said conflicting green strategies could be behind the delay in setting net zero plans.
“The delay in formalising a plan for many businesses could be due to sustainability fatigue,” he said.
“Globally, there are different levels of proactivity around the green agenda, and when you combine this with inconsistency in strategy both here in the UK and across the globe, the complexity can be exhausting, and in some cases, lead to paralysis.
“With upcoming legislation that will require businesses to disclose not only climate, but broader sustainability risk, businesses need to create a comprehensive strategy, underpinned with a funding plan, that is embedded at board level, throughout the business and its supply chain.”
