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Business net zero plans blown off track by the energy crisis Telford, UK
07/09/2023
Energy Crisis
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82% of UK business leaders say the energy crisis will impact emission reduction plans.
34% of these now have more immediate business challenges than carbon net zero.
27% of these now believe taking practical action to meet targets is difficult.
Telford (UK), September 7, 2023 - 82% of UK business leaders say the energy crisis will impact their organisations ability to meet emissions reduction plans, according to research published today by Schneider Electric, the leader in the digital transformation of energy management and automation.
Of that figure, around half of organisations say they are delaying planned investment in sustainability and net zero plans (49%). Just over one third of the same organisations (34%) say they now have more immediate business challenges to meet. More than a quarter of these organisations claim that taking practical action to meet targets is difficult (27%).
Given the direct link between lower energy use and decreased emissions, organisations that maintain efforts to meet their emissions targets will also reduce energy use as a result. This in turn will lower their overall energy costs, and provide a useful boost to the bottom line in a challenging economic climate.
Crucially, the survey of more than 1,200 large organisations reveals 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 a small minority (12%) believe that national net zero commitments will be diluted in that time.
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 , said Kelly Becker, Zone President, Schneider Electric UK and Ireland.
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 , said Kelly Becker.
The survey also reveals that only around one in five (21%) of those surveyed believe that energy prices will fall over the next three years, while over two thirds (69%) think their organisation will still be addressing the energy crisis in 12 months' time.
Presenting the survey findings, Kelly Becker 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.
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, she added.
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.
ENDS
About Schneider Electric
Schneider's purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.
Our mission is to be your digital partner for Sustainability and Efficiency.
We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.
We are the most local of global companies. We are advocates of open standards and partnership ecosystems that are passionate about our shared Meaningful Purpose, Inclusive and Empowered values.
www.se.com
About the research
The research was carried out online by Research Without Barriers (RWB) between 12th May 2023 and 7th June 2023.
The sample comprised 1,504 energy decision makers in the UK & Ireland in organisations with 50+ employees.
All research conducted adheres to the UK Market Research Society (MRS) code of conduct (2023) & ESOMAR.
RWB is registered with the Information Commissioner's Office and complies with the DPA (2018)
Discover the newest perspectives shaping sustainability, electricity 4.0, and next generation automation on Schneider Electric Insights.
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Kelly Becker
President, Schneider Electric UK and Ireland
Kelly has spent many years leading Schneider Electric's business across the globe and is currently responsible for all operations within the UK and Ireland. Most recently, Kelly has also held the role of Schneider Electric Country President, Ireland and Vice-President of the Power Solutions Division in the US. During her experience, Kelly has led many Schneider functions across the globe with a strong focus on strategy and business execution. During her time in the US, Kelly led strategy
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