The UK has pledged to achieve net zero greenhouse gas emissions by 2050. Yet as recently as 2023, the government’s independent advisors, the Climate Change Committee (CCC), warned that their ‘confidence in the UK meeting its medium-term targets has decreased in the past year’.

Businesses have a central role to play in the overall emissions reduction required. Since 2021, we’ve been surveying UK business leaders about their understanding of, and efforts towards, net zero targets – publishing the results in our annual Net Zero Barometer report.

For the recently released fourth edition, we surveyed over 1,000 key decision-makers from a range of UK based businesses. With previous editions revealing that commitment to net zero has not always been matched by action on the same scale, what’s changed this year?

What were the key findings this year?

1.      Climate-related risks are the primary driver of action for the first time

Achieving net zero is increasingly being seen as necessary for the continued existence of many organizations. This year, 24% of businesses cited climate-related risks like floods as the primary reason for taking action. Other important drivers included: regulatory changes (20%), client/customer pressure (15%), reputational risks (10%), and liability/legal risk (8%).

2.      Cost continues to be a barrier for action

As with previous years, cost emerged as a major obstacle to achieving net zero. 51% cited cost as a barrier to progress this year, compared to 44% in 2021. Perhaps unsurprisingly, smaller companies are finding cost a particular challenge. 47% of SMEs cited it as a significant barrier to progress, compared to just 32% of businesses employing more than 250 staff.

3.      Businesses are looking for clarity from government

After cost, the most significant obstacle cited by businesses over the last 12 months was uncertainty over the current government’s (38%) and the next government’s (35%) green commitments. Nine out of 10 businesses surveyed this year also looked for greater government support in reaching net zero, including financial incentives. And regardless of size or sector, most are not seeking preferential treatment, with 85% agreeing that all industries and organizations should play an equal role in achieving this goal.

4.      Businesses are taking action – but it’s not always being measured appropriately

Measurement is crucial to understanding progress towards net zero, and resources like the scopes laid out in the Greenhouse Gas Protocol provide a framework for getting it right. However, while a heartening 83% of businesses surveyed are taking action on net zero, only 23% of businesses surveyed this year fully measure their Scope 1 emissions. Only 22% fully measure Scope 2, whilst a mere 18% measure Scope 3 as fully as is possible.

5.      There is a growing gap in achievement between large and small businesses

Large firms are more likely to have set targets for net zero than SMEs (63% vs 52%). Only 48% of microbusinesses (those with nine employees or fewer) have a net zero policy detailing stages and actions compared with 72% of larger firms.

Larger businesses are also more likely to measure, at least in part, their Scope 3 emissions than SMEs (30% vs 18%). 66% of larger firms are measuring progress on achieving net zero in a standardized way compared with 48% of microbusinesses.

6.      There’s a gap in achievement based on sector

The UK government’s 2018 net zero commitment set interim targets to run a net zero electricity system by 2035 and to reduce overall national emissions by 78%. This year’s data shows that businesses affected by these targets are making the greatest strides towards achieving net zero. For example, 75% of businesses in quarrying, mining and utilities have reduced their energy consumption, compared to 67% in transport, 68% in accommodation and food services, and only 58% in retail.

The role of standards in helping businesses achieve net zero goals

It’s clear that significant obstacles remain for businesses on the road to net zero. Yet, as in previous years, there is a clear opportunity for those who get ahead. And, as the Net Zero Barometer concludes, standards are transparent and flexible tools that can help businesses begin the transition to net zero.

Standards specifically applicable to climate and environment include those for energy management, greenhouse gas management, carbon accounting, carbon neutrality and decarbonization of infrastructure. Others include specifications for improving energy efficiency in new buildings and retrofitting older ones.

A new BSI fast-track standard will be of interest if you are beginning your journey towards a net zero transition plan in the UK, particularly if you run an SME. BSI Flex 3030 is freely available to download. It is a code of practice with recommended steps towards net zero transition planning.

 For international policymakers and larger organizations, there are the PD IWA 42 Net Zero Guidelines, with which the Flex standard is aligned.

The IWA 42 Net Zero Guidelines are being converted into an international standard: BS ISO 14060 Net Zero Aligned Organizations. This will lay out the requirements for how any type of organization can demonstrate that their net zero strategy, including their targets and delivery to these targets, are compatible with reaching net zero, and that they are making credible and verifiable progress towards contributing to global net zero in line with the Paris Agreement.

The standard is currently going through drafting and should make its debut at COP30 in November 2025.

To read the 2024 Net Zero Barometer, please visit the BSI website to download the full report. Over the next few weeks, we’ll be publishing a series of articles exploring the report’s findings in more detail and examining the role of standards in helping businesses achieve net zero. Keep an eye on BSI Knowledge’s Net Zero topic page for more.

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