25 Feb 2021

Net zero explained for businesses in new Chamber briefing paper

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A new briefing paper designed to raise awareness of 'net zero ' and what it means for businesses has been released by Greater Birmingham Chambers of Commerce.

'Net Zero and the Business Community ' details why net zero is important for businesses, the economic and commercial opportunities it presents, as well as outlining some of the legal and compliance obligations.

It also explains some of the business support programmes available in the region.

The paper is released as the Government, the West Midlands Combined Authority (WMCA) and Birmingham City Council have set net zero targets.

The UK is hosting the international Conference of the Parties 26 (COP 26) in November, where additional climate action is likely to be agreed.

The WMCA is set to release its first five-year plan this year, which requires a regional decarbonisation effort of 25 per cent by 2026.

According to a survey released by the British Chambers of Commerce, many West Midlands businesses recognise the need to reduce their environmental impact and are planning to, or have taken action.

The top reasons for doing so are: cost savings (54 per cent), competitive advantage (42 per cent), differentiation (29 per cent) and increased customer demand (28 per cent).

However, the survey also highlighted that many firms feel more financial support is needed to maximise the effectiveness of the business transition to net zero.

Financial circumstances are a barrier for up to 33 per cent of businesses (relating to low carbon technology, lack of financial subsidies and capital).

In addition, there is still work to be done to ensure a successful net zero transition for businesses.

Research from Llibertat and The Broadway Initiative found many do not have the time or resources to identify how aspects of net zero policy will apply to them, or what measures to take to reduce their environmental impact.

Will Hargreaves, policy advisor at Greater Birmingham Chambers of Commerce, said: “Business and industry are recognised as key sectors to decarbonise and achieve net zero targets - this briefing paper raises awareness of this agenda and highlights what it means for businesses in the region.

“It is essential businesses experience a successful transition to net zero, especially given the current difficulties from the pandemic. Therefore, it is important that consideration is made on how net zero impacts business, but equally, that they are informed of relevant support ”

“In the run up to COP 26, local businesses have a great opportunity to showcase the actions they are taking to contribute to net zero and demonstrate local climate leadership.

“As a Chamber, we will continue to work closely with businesses across Greater Birmingham to inform them of the upcoming opportunities and challenges on the horizon. ”

See the Net Zero and the Business Community Briefing Paper here.