Confidence amongst UK businesses that the country can meet its net-zero targets has fallen, despite improved clarity around the policy direction, with a new poll conducted by BSI showing that a majority (71 per cent) of business-leaders say that the Government cannot grow the economy while simultaneously trying to reach net-zero.

Half (50 per cent) of respondents also said they felt the Government’s target to reach net-zero by 2050 is unrealistic.

Now in its fifth year the BSI Net Zero Barometer, featuring expert analysis and a survey of 1,000 senior business leaders, shows that while a majority (64 per cent) of businesses remain committed to the UK’s legally binding 2050 net-zero target, this has dropped from 83 per cent who said the same in 2024. Furthermore, the proportion of those “very committed” to the target has fallen to a quarter from 31 per cent. The data additionally highlights a growing divide between smaller and larger businesses. Large firms remain significantly more optimistic (89 per cent) than SMEs (61 per cent).

Business leaders also reported less uncertainty over the Government’s clean energy transition policy, down ten per cent to a third, businesses are adjusting their transition strategies. More than half expect to revise their sustainability strategies in the year ahead, while nearly half anticipate revising their net-zero targets.

Scott Steedman, director-general, standards, BSI, said: “Our latest Net Zero Barometer business survey shows a hiatus in corporate activity, probably linked to changes in Government policy in the UK after the election and international backpedalling, but if the new government can demonstrate renewed political commitment towards a future clean energy landscape, there may be an opportunity for government and industry to reset their collective net-zero ambitions and build momentum again.”

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