Almost half (44%) of UK companies have a structured plan in place to reduce their carbon footprint, up from 34% a year ago, according to a new report from Aviva.
And two-thirds of UK firms are now concerned about the climate and believe that organisations should reduce their carbon footprint. The figure 12 months ago was 54%.
The findings of Aviva’s latest annual climate-ready index suggest UK businesses appear to be responding to increasing pressure from customers and other businesses to address climate change. Nearly half (45%) of businesses now feel consumer pressure to act on climate, up from 30% a year ago, and 39% feel pressure from other businesses to put climate plans in place, up from 27% in 2022.
According to the report, businesses are taking energy-saving measures such as turning off lights, increased use of renewable energy such as solar power and ground source heat pumps, and greater waste recycling.
However, the current economic situation has led to 42% of businesses pausing investment in cutting their carbon footprint, with 56% of UK businesses describing the cost of cutting their carbon impact as ‘unaffordable’.
Aviva’s report also highlights a mixed picture for the UK’s overall progress in adapting to and mitigating climate change. It warns that after years of being seen as a leader in climate action, the UK’s position in climate change mitigation is starting to slip. The recent dilution in government net zero commitments means meeting future targets is an even bigger challenge and creates uncertainty.
Amanda Blanc, group CEO at Aviva, said: “I am worried that UK climate action has stalled this year, according to our analysis. The UK’s ambitious climate goals are under threat due to a lack of practical and detailed plans. This puts at clear risk the jobs, growth and the additional investment the UK requires to become more climate ready.
“Despite this, we can see UK businesses trying to address the climate challenge in greater numbers and putting action plans in place. To support them, we urgently need a UK, whole economy, transition plan which allows us to compete more effectively with the US Inflation Reduction Act and help the UK become the most climate-ready major economy by 2030.”
The UK’s ambitious climate goals are under threat due to a lack of practical and detailed plans. This puts at clear risk the jobs, growth and the additional investment the UK requires to become more climate ready.
Amanda Blanc, Group CEO, Aviva
