Over half of GM businesses unaware of 2050 net-zero target

55% of businesses in Greater Manchester have no awareness of national targets for the UK to reach net-zero carbon emissions by 2050, according to a new report published by Q Energy and backed with data from the Greater Manchester Chamber of Commerce’s Quarterly Economic Survey (GMCC QES).

The alarmingly high figure has been revealed following the UK’s hosting of world leaders for the COP26 climate summit, which concluded on 12th November with the majority of the world now covered by a net-zero target.

In 2019, the UK was the first major economy to pass a net-zero law, requiring the reduction in greenhouse gas emissions by 2050. While larger businesses are now required to report and reduce emissions, smaller organisations, representing 50% of UK commercial emissions and 99% of organisations are not. Large companies (over £36 million turnover) are required to report carbon emissions in filings to Companies House, while suppliers on government contracts over £5 million are required to have committed to published a carbon reduction plan to meet the 2050 target.

The Q Energy report which identified the high figure of businesses in the city-region unaware of a need to make carbon reduction commitments, “It Starts Here: The Road to net-Zero for GM Businesses”, highlighted the challenges faced by organisations starting their journey to net-zero.

Vijay Natarajan, Founder and COO of Q Energy, summarised the report’s findings:

“This report could not have come at a better time with the eyes of the world on Glasgow and the acceptance that we really are at a critical point with regards to carbon emissions. The race to a sustainable future isn’t just a race, it’s a team sport with everyone having to play their part.

“It is very worrying then when 55% of businesses say they are unaware of the UK’s net-zero ambitions. The question asked around the challenges facing SMEs when it came to carbon reduction highlighted that lack of information around net-zero, carbon measurements and reporting as being the main issue faced with 49% of businesses citing this, closely followed by high up-front costs of solutions and services.

“The better news came from the question focussed on the motivation for starting net-zero activity with 57% saying that they were doing it for environmental and sustainability goals rather than efficiency gains and/or cost savings (35%). This is surprising considering we’ve just come out of a pandemic and finances for many businesses are an increasing worry.

“The final question focussed on what businesses were already doing on their net-zero journey with many undertaking a range of actions including practical changes such as LED lighting, turning down appliances as well as planning to install on-site renewable generation such as solar panels or battery storage.

“It is quite clear from the report that Greater Manchester businesses care about creating a sustainable future with active plans for the next 12 months and beyond, though some still see this as an expensive option.”

Chris Fletcher, Policy Director at Greater Manchester Chamber, added:

“It is great to have had Q Energy support the QES on such a major issue. Net-zero is in everybody’s line of sight at present but it’s clear that whilst some businesses have made a start much more needs to be done.”

Q Energy’s full report for GMCC can be read in full online. Data used in the report was collected during the GMCC QES for Q3 of 2021. Data collection for the latest survey, highlighting the opportunities and challenges facing businesses in Greater Manchester, is currently underway.