82% of UK business leaders say the energy crisis will impact their organisation’s ability to meet emissions reduction plans, according to new research by Schneider Electric, a specialist in the digital transformation of energy management and automation.
Of that figure, around half say they are delaying planned investment in sustainability and net zero plans (49%). Just over a third (34%) say they now have more immediate business challenges to meet, while more than a quarter claim that taking practical action to meet targets is difficult (27%).
The survey of more than 1,200 large organisations revealed that business leaders still recognise the importance of working to emissions reduction targets, as 39% believe that climate change and net zero ambitions will become more of a priority over the next three years. Only 12% believe national net zero commitments will be diluted in that time.
Kelly Becker, zone president, Schneider Electric UK and Ireland, said, “Business leaders tell us that the energy crisis should be seen alongside the many other challenges they have faced over the last twelve months, including economic pressures, cyber security and skills shortages. Yet our research suggests that some of the UK and Ireland’s largest organisations are ‘kicking the carbon emissions can down the road’, as a result of the energy crisis.
“As fears grow about progress against global commitments made under the Paris Agreement, and the UK’s Climate Change Committee warns of a lack of progress on emissions cuts, the UK and Ireland need businesses and organisations in the public sector to play their part and stick to their net zero and emissions reduction targets.”
The survey also revealed that only around one in five (21%) of those surveyed believe energy prices will fall over the next three years, while 69% think their organisation will still be addressing the energy crisis in 12 months’ time.
Kelly Becker has now urged business leaders to re-engage with their emissions reduction ambitions. “It’s not all doom and gloom: as our research shows, business leaders still believe in their climate change ambitions – they simply need to push the subject back up the corporate agenda,” she added. “The technology required to help businesses decarbonise is already available – and the return on investment for these solutions has never been more attractive, with payback periods measured in months rather than years.
“Organisations still have time to meet their net zero commitments by understanding and addressing energy use, investing in renewable energy and energy saving technology, and embedding sustainability and carbon reduction targets in their business plans.
“What’s more, those that invest in green skills and green jobs will reap the rewards of a diverse workforce for decades to come. At Schneider, we’ve seen this for ourselves through our apprenticeship and graduate programmes.”
