A recent survey undertaken by YouGov and commissioned by the University of Cambridge’s Institute for Sustainability Leadership (CISL)[i] has found that the majority of business leaders polled believe net zero regulation is needed for both their net zero ambitions and for economy-wide decarbonisation. The study surveyed c-suite respondents from the following countries: the UK, the US, Germany, Brazil, Japan, India, and South Africa. Just over half of the businesses represented had 1,000 or more employees, and all respondents had over 250 employees.
The research asked business leaders whether they had some form of a plan to reach net zero, and seven in ten responded in the affirmative. Interestingly, 9 in 10 South African businesses said they had a plan in place, compared with just half (5 in 10) of German and Japanese businesses. Overall, eight in ten businesses said that they agreed government policies are necessary to deliver economy-wide change in tackling the climate crisis. This was most strongly supported by those in South Africa (89%) and least supported in Germany (just 56%). Contrastingly, almost all Indian business leaders surveyed (93%) said they believed businesses would drive the change required; this was compared to just 48% of UK business leaders and 58% of German leaders.
Q: To what extent do you agree or disagree with the following statements in relation to tackling the climate crisis: Government policies are necessary to bring about economy-wide change. Base: 702
Source: YouGov, CISL
Clare Shine, Director and CEO at CISL, has said: “Since Paris, there has been a wave of business ambition and commitment to addressing net zero and nature restoration, to the extent that this is now widely acknowledged by most businesses as central to the health of our economies, populations and environments. But in a world of competing pressures and crises, voluntary action can only progress us so far and to get us over the next line, where implementation at scale and pace can progress, it is great to see businesses across the world supporting the regulation needed to transform global economies and national sectors. These findings point to a situation where many large businesses feel they have the investment and plan to get them to net zero, now they need the right government policies.”[ii]
The survey uncovered a number of divisions between the industry sector of a company and its size (in terms of employees). For example, the manufacturing sector saw 7 in 10 respondents state that they have a net zero plan in place, yet just 5 in 10 said the same about the transport sector. The research also shows that larger businesses (1,000+) are more likely to have a net zero action plan in place than smaller organisations.
Q: Within your business, do you currently have a net zero action plan in place across your organisation? Base: 702
Source: YouGov,CISL
The study also uncovered some potential issues with businesses’ net zero plans. Just over three-quarters of survey respondents said that their net zero plans rely on technology innovations not yet available in the market. This figure was even greater in India at 87%, where interestingly, 9 in 10 respondents also said they believed that technology will deliver the required solutions to tackle the climate crisis.
Overall, more than three quarters of companies (77%) said that their net zero ambitions rely on changes in the policy and regulatory landscape that are not yet in place. Further concern lies in the financial backing to reach proposed net zero goals- just under a third of companies (31%) said that they had the investment required to achieve their net zero ambitions. When looking specifically at businesses whose net zero plans are dependent on technology that is not available in the market yet, just 3 in 10 mostly have the investment they need.
When assessing potential funding options available to aid businesses in reaching their net zero goals, less than half are clear as to what is available to them, demonstrating an opportunity for Government to clarify this and inform businesses moving forwards. Lastly, evaluating the drivers for companies shows that they are more driven by the opportunity climate change poses, than the risk.
Q: To what extent Is your company driven by climate change risk vs the opportunity? Base: 702
Source: YouGov, CISL
[i] Net Zero survey (cam.ac.uk)
[ii] New poll indicates strong business appetite for net zero regulation | Cambridge Institute for Sustainability Leadership
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
