Almost a third of UK middle market businesses don’t yet have a sustainability plan or strategy in place – highlighting a worrying lack of formal commitment despite the North West’s ambitions to achieve net zero emissions by 2040, with Liverpool and Manchester aiming for 2035 and 2038 respectively, ahead of the UK government’s 2050 target.
However, according to RSM UK’s latest ‘The Real Economy’ findings, 30% of businesses said they didn’t have a sustainability strategy in place. This includes a quarter (25%) planning on creating one in the next 12 months and another 5% stating they had no plans to create any formal strategy.
In addition, almost a quarter of businesses (24%) still haven’t set net-zero targets to reduce emissions produced by their business despite key efficiencies and cost savings this could deliver.
The survey found that 76% of respondents feel sustainability provides an opportunity for their business, while 35% believed having a sustainability strategy created value for their business by making it easier to access capital or investment.
Kathy Hobbs, associate director and regional ESG lead in the North West at RSM UK, said: “The North West’s net zero targets are ambitious, and will require a collaborative approach involving all industries and their supply chains – particularly transport and infrastructure. Businesses will also need investment and government support in order to deliver on such progressive and leading net zero targets.
“Many businesses don’t even have a sustainability strategy in place, but this focus in areas like the North West should encourage regional businesses to act, develop strategies and begin to decarbonise their organisations.
“There’s also scope for the North West to lead the UK’s approach to tackling climate change, given its ambitions to form the world’s first net zero cluster which will support job creation, inward investment and economic growth. Sustainability provides an opportunity for business, especially when it comes to accessing capital or investment. Banks and private equity now expect businesses to demonstrate ESG and sustainability strategies and credible data to show progress, add value and increase the business opportunity for investment.
“It’s therefore important that the government provides a consistent and clear strategy to ensure businesses can confidently invest in sustainable initiatives for long-term growth and contribute to the UK achieving net zero.”