New data shows that IT and communications companies are leading the charge in carbon reduction efforts, with 91% set to have emission reduction plans by 2025.
According to the inaugural UK Net Zero Business Census released this week, the technology sector spearheads the nation’s transition to net zero in the United Kingdom. The survey, with a total sample of 2,005 organisations across various industries, reveals that IT and communications companies are taking decisive action on climate change, outpacing other sectors in several key areas.
Conducted by the UK Business Climate Hub in partnership with Planet Mark, the census found that 68% of IT and communications companies have already developed plans to reduce carbon emissions, with an additional 23% planning to do so within the next 12 months.
This puts the sector on track to have over 90% of its companies with concrete emission reduction plans by 2025. The report aims to highlight the commitments, challenges, and opportunities faced by organisations of all sizes and industries, each at various stages of their net zero journey.
“The current state of net zero actions varies significantly across sectors, with substantial progress in some areas and notable gaps in others,” the report reads. Andrew Griffiths, policy director at Planet Mark, iterates that net zero is not just about meeting targets; “it’s about reshaping business strategy for long-term resilience.”
The tech sector sets the pace in carbon reduction efforts
The census highlighted the e-tech sector’s potential to drive innovation and lead by example in transitioning to a low-carbon economy. For context, the census shows that 44% of tech companies have measured their partial baseline carbon footprint, and 41% report achieving measurable carbon emissions reductions.
The sector is also proactive in implementing energy efficiency measures (58%) and actively choosing lower-carbon suppliers (44%). This underscores opportunities for sustainable tech companies to develop solutions that can help other sectors measure, report, and reduce their emissions as pressure mounts across industries to take climate action.
Across all sectors, the census reveals a solid commitment to net zero goals, with 73% of respondents saying net zero is a medium, high, or very high priority for their business strategy within the next 12 months. Additionally, 80% of organisations are prioritising broader sustainability goals.
Challenges and benefits on the path to Net Zero
However, the journey to net zero is not without challenges. The census identified several barriers to progress, with high costs being the most significant. 59% of organisations across all sizes and sectors cited high costs as a significant or moderate barrier. Other notable obstacles include the availability of finance (52%), lack of time (52%), and outdated infrastructure (53%).
Despite these challenges, organisations recognise the benefits of pursuing net zero initiatives. Contributing to addressing climate change ranked top, with 46% of participants finding it a significant benefit, followed closely by enhancing organisational reputation and public opinion (45%).
The census also revealed a significant trend in supply chain dynamics, with 46% of respondents reporting receiving requests for carbon data from customers or tender applications in the last 12 months. This includes 37% of SME respondents, suggesting that requirements to measure carbon emissions are cascading down through supply chains to affect smaller businesses.
Accelerating net zero progress through government support and education
Organisations expressed a need for more government support to accelerate progress. Andrew reckons the new Labour government has a unique opportunity to create the right policy environment to support organisations and the economy more broadly “on our net zero journeys.”
The most popular form of assistance requested was ‘Enhanced Tax Incentives’, with 41% stating this would be ‘very helpful’. This was closely followed by ‘Greater Certainty in Policy & Regulation’ at 40%, providing a clear mandate for the new UK government to set and commit to a long-term net-zero industry strategy.
The census also highlighted the importance of education and training in driving net zero initiatives. It was the most accessed support form, with 31% of organisations having tapped into educational resources. The UK Business Climate Hub website was another popular resource, accessed by 30% of respondents.
As the UK strives to meet its legally binding net zero greenhouse gas emissions target by 2050, the tech sector’s leadership in this area is crucial. However, the census clarifies that achieving net zero will require a concerted effort across all industries, supported by clear government policy and innovative financial mechanisms.
