Businesses across the G7 – Canada, France, Germany, Italy, Japan, the UK and the US – remain committed to decarbonisation, but are ‘reframing’ how they talk about and approach net-zero strategies, a new report by the BSI has found.
The BSI’s research, which was undertaken in February of this year, found that more than four fifths (81%) of industry leaders are concerned about future costs and operational resilience if their business doesn’t prepare for climate change.
Future resilience
In addition, three quarters said that the cost of the transition was outweighed by the long-term benefits – even in the US, where the sustainability agenda has received political pushback, 74% of firms say that they are concerned about future costs and resilience.
Across the G7 countries, 83% of business leaders say that they are committed to achieving net zero by the national target, with 76% highlighting the importance of maintaining momentum. Close to four fifths (78%) say that even if targets are unattainable, decarbonisation should still be prioritised – rising to 84% in the US.
However, there are signs of a shift – one in four firms say that they plan to reduce spending on decarbonisation, while a third (32%) of all businesses say that they have revised their plans over the past year, and a similar percentage (33%) have reevaluated them.
A smaller percentage added that they have paused targets (14%), with 13% noting that they have dropped them altogether.
Political polarisation around decarbonisation is seen as an ‘unhelpful distraction’ by businesses – some 76% of G7 leaders (including 75% in the US), said policy uncertainty around net zero makes it difficult to invest confidently.
Allied to this, 83% of respondents said that they want their governments to encourage and support businesses when it comes to decarbonisation, while 79% anticipate that net zero will become a political priority again in the coming decade, even if it is not one today.
‘Stark focus’
“Recent geopolitical events have brought into stark focus the need for a societal shift towards renewable sources of energy,” commented Susan Taylor Martin, chief executive, BSI. “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. The next step is to bridge the gap between ambition and action through climate risk adaptation measures.”
She added that while uncertainty and disruption are increasingly permeating the global economy, the BSI’s role is to “provide clarity, consistency and trust through standards, as businesses globally grapple with the transition to a net zero future”. Read more here.
