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Over 2,000 organisations took part in the UK Net Zero Business Census, which found that high costs, limited access to finance, and time constraints are barriers to decarbonisation for 59%, 52% and 52%, respectively.
Outdated infrastructure, regulatory uncertainty, and lack of trusted information sources are further constraints for 53%, 50%, and 46%, particularly for small and medium-sized enterprises (SMEs).
Despite these barriers, 73% of respondents reported that net zero is a strategic priority in the next 12 months, with 65% having set targets to reach net zero by 2050, and 48% aiming for 2035.
Martin Baxter, deputy CEO at IEMA – which partnered with the UK Business Climate Hub and over 50 other organisations for the Census – said that some non-experts are setting targets without really knowing the level of change that is required to achieve 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," he continued.
"For example, contracts that you are already locked into for products and services in your supply chain that may be linked to fossil fuels, or decisions about whether a business chooses to shorten the asset life of a fossil fuel dependent process.
“On the plus side, decarbonisation is not necessarily a linear progression, you can take big steps to make significant emission reductions when contracts end or you can make investments in renewable energy or clean technology.”
To overcome the barriers uncovered by the study, 92% of organisations said improved government support would be beneficial.
By working in partnership with business and finance to establish clear, long-term regulatory timelines, government can provide stability and confidence for investment in net zero initiatives, further helping to address many organisations’ policy uncertainties, the researchers said.
This support is particularly needed by SMEs that are being indirectly affected by carbon disclosure regulations cascading down to impact them via supply chains, with 37% having been asked for carbon data by a customer, compared to 55% of large organisations.
However, Baxter said: "The net-zero target date may be reliant on external forces for which you have little control, such as the decarbonisation of the UK electricity grid or the lack of electric vehicle charging infrastructure in a part of the country where you have a significant workforce.
“My advice to businesses is to start by making the relatively small investment in green upskilling within your workforce, weaving sustainability skills throughout the business – much like the way digital skills spread across businesses over previous decades – and harness the insight employees will then be able to provide on where to prioritise your bigger investments.
“Unlocking the potential of existing employees provides a platform for businesses to implement low-cost or no-cost opportunities to reduce carbon emissions, cut costs and boost employee recruitment and retention."
Image credit: Shutterstock
Chris Seekings is the Deputy Editor of IEMA’s Transform magazine, which is published biomonthly for IEMA members. Chris’s role involves writing sustainability-related news, features and interviews, as well as helping to plan and manage the magazine’s other day-to-day activities.
