Businesses in the dark over climate change  - Chamber

An alarming 40 per cent of UK businesses are struggling to understand net-zero targets in a stark ‘reality check’ to politicians on the eve of the United Nations Climate Change conference in Dubai.

The shortfall in knowledge amongst business leaders – particularly within SMEs – has been revealed following an extensive survey by the British Chambers of Commerce’s Insight Unit.

The survey found that seven per cent are not aware of the UK Government’s target at all, while 33 per cent are aware but know no details. Last year 13 per cent were not aware, and 48 per cent had no details.

Meanwhile, there is considerable business uncertainty around the impact of the UK’s net zero policy changes announced in September. Around a quarter (24 per cent) say the postponement of various targets will have a negative impact, while a third (31 per cent) say the postponement will have a positive effect on their business.

And around a quarter (24 per cent) of firms report some form of exposure to severe weather events.

Over 1,000 businesses were surveyed for the research, with 96 per cent of respondents SMEs. Similar research last year showed 61 per cent of firms either not aware or having limited knowledge of the Government’s targets.  

This latest data once again reveals wide divergences between smaller and larger firms in their understanding and preparedness for net zero. 43 per cent of firms with fewer than 10 employees say they don't know any details about the target compared to 26 per cent of firms with more than 50 employees. 

The research is published as the British Chambers of Commerce delegation of 60 businesses prepared to head to COP28. Led by Director General Shevaun Haviland and Chair Sarah Howard, the team will take part in a series of events working in partnership with the British Chamber of Commerce Abu Dhabi. The delegation will meet UK and global politicians and take part in policy discussions, including on energy transition.  

Representatives from several UK chambers will also be at the international climate conference.  

Shevaun Haviland, director General of the British Chambers of Commerce said:  “On the eve of COP28 our research should be a huge reality check to politicians.  

“There is a huge challenge ahead to raise awareness in the business community about the UK’s 2050 net-zero target. Many firms are simply unaware of it, or have only a cursory understanding. 

“Business must be at the heart of tackling climate change. The Chamber network is working hard every day to improve understanding among our members, but companies need clear leadership from politicians.  

“Firms are calling out for a consistent net-zero framework that is clearly explained to them. The transition to Net Zero provides businesses with huge opportunities to grow and diversify. But awareness is key. 

“From flooding to heatwaves, a significant number of companies are now telling us severe weather is having a real impact on their business. Standing still on tackling climate change is no longer an option.  

“We want three outcomes from COP28. We need clarity of frameworks to drive action. We need to see action to prepare for increasing exposure to severe weather events around the world. And finally, we want to see more support for the innovation and expansion of green technologies.”