Energy crisis forces firms to shelve net zero plans

Almost half of energy-related businesses have delayed or cut investment in their sustainability and net zero plans due to the impact of the energy crisis.

According to research published by Schneider Electric, 80% of energy firms in the UK and Ireland expect the energy crisis will impact their ability to meet emission reduction targets, with 49% admitting that net zero investment has already been delayed or cut.

Of the 1,500 firms surveyed, 46% said that shareholders no longer see emission reduction targets as a priority, with one in five organisations stating that taking practical action to meet targets is difficult.

Despite the impact of the crisis, there is optimism that corporate investment in sustainability will return as a priority for businesses in the coming years.

Less than one in 10 (9%) believe that national net zero commitments will be diluted in the next three years, with 42% stating that climate change and net zero ambitions will become more of a priority over the next three years.

Schneider Electric zone president Kelly Becker said that there is clear evidence that the energy sector is “kicking the carbon emissions can down the road”.

She added: “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 these firms to play their part and stick to their net zero and emissions reduction targets.”

The survey also reveals that only 16% of energy business leaders surveyed believe that energy prices will fall over the next three years, while nearly three quarters (72%) think their organisation will still be addressing the energy crisis in 12 months’ time.

Becker added: “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.”