Most UK businesses still view net zero as an important part of their strategy, despite global uncertainty and rising costs, according to the latest Net Zero Business Census.
The research – carried out by the UK Business Climate Hub in partnership with Planet Mark – gathered responses from more than 2,000 organisations across the UK. The findings suggest that while many larger firms are maintaining momentum, smaller businesses are encountering more barriers to progress.
Larger firms stay committed, but smaller ones are struggling
The Census found that 79% of large UK businesses consider net zero a strategic priority for the year ahead. Among SMEs, that figure falls to 35%.
Most respondents said they still see value in taking action on climate. Only 3% of large firms and 25% of SMEs said they saw no benefits to net zero.
Requests for carbon data are also becoming more common across supply chains. More than half (51%) of large UK businesses said they had been asked for emissions data as part of tender applications, rising to 62% for those working internationally. Among SMEs, 37% of medium-sized, 20% of small, and 8% of microbusinesses said clients had requested carbon data in the past year.
Costs and regulation remain key barriers
While many organisations say net zero remains a focus, the path forward isn’t straightforward. Regulatory uncertainty was cited by 70% of respondents as a challenge, while 80% said costs were a key barrier. A lack of financial support, such as grants or funding, was raised by 69%.
These difficulties are particularly pronounced for SMEs, which often have fewer resources or specialist knowledge to draw on.
Recommendations from the Census
The report sets out several recommendations for policymakers, aimed at helping businesses make progress towards the UK’s 2050 net zero target. These include:
- Clearer and more consistent regulation
- Improved access to financial support, such as grants or proposed ‘Help to Green’ vouchers
- Better awareness of reliable guidance, such as resources available through the UK Business Climate Hub
The Net Zero Business Census is supported by the Department for Energy Security and Net Zero (DESNZ), the British Business Bank, Planet Mark and more than 50 other partner organisations. It is currently the largest national survey of business progress on net zero.
SME progress and opportunities
A related report from the British Business Bank, SMEs and Net Zero, offers a more detailed look at smaller firms. It found that 77% of SMEs have started taking steps towards net zero, and 63% reported organisational benefits from doing so.
Andrew Griffiths, Policy Director at Planet Mark, said:
“Although the political consensus on climate action is destabilising, British businesses are still clearly committed to net zero. When leaders look at the evidence and think about long-term strategy, it is becoming increasingly apparent that the businesses that act today to enhance efficiency, reduce emissions and build resilience to environmental impacts are setting themselves up for success in a more sustainable future.
“These landmark reports show how the private sector can lead the net zero transition in the UK. It also highlights how SMEs that can demonstrate their action on climate change can gain a competitive advantage, as committed larger businesses find ways to tackle their supply chain impacts.”
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