New research from RSM UK highlights a significant gap in sustainability planning among UK businesses. According to their latest report, “The Real Economy,” nearly one-third of UK middle market firms currently do not have a sustainability strategy in place, reflecting a gap between corporate practices and government commitments to clean energy.
The study reveals that 30% of businesses are yet to establish a formal sustainability plan. Of these, 25% are considering implementing a strategy within the next year, while 5% have no plans to develop one. This underscores a broader issue of commitment to sustainability in the face of governmental promises for cleaner energy solutions.
Furthermore, the research indicates that 24% of businesses have not set net zero targets, despite the potential for significant cost savings and operational efficiencies. While 74% of businesses have established net zero goals, 21% of these organisations lack a detailed strategy or transition plan to achieve their targets.
Grant Morrison, RSM’s partner in Aberdeen and head of oil and gas, commented on the findings: “Our survey demonstrates that a significant proportion of businesses still lack a sustainability plan. This situation underscores the need for clearer guidance from the government on the transition to clean energy and how businesses can contribute to this shift.”
Morrison also pointed out the role of Aberdeen’s skilled workforce and infrastructure in advancing clean power generation. He suggested that leveraging these resources could support the goals of the recently launched GB Energy initiative, potentially positioning Aberdeen as a key player in the UK’s energy transition.
He further noted: “While the government has laid out a climate change strategy, there is a clear need for a more comprehensive industrial strategy. This should include details on energy sources, investment frameworks, and incentives for research and development to drive meaningful change.”
Rich Hall, RSM’s partner and head of sustainability, observed: “The delay in adopting formal sustainability plans may stem from what we call ‘sustainability fatigue.’ The varying levels of global proactivity, combined with inconsistent strategies both within the UK and internationally, can overwhelm businesses and lead to inaction.”
Hall emphasised the importance of businesses developing robust sustainability strategies in light of upcoming legislation that will require disclosures on climate and broader sustainability risks. “To effectively address these challenges, businesses must formulate comprehensive strategies supported by funding plans and integrated at all levels, including within their supply chains,” he concluded.
