Chris Turner, executive director of B Lab UK comments:

At this year’s Conservative Party conference HS2 dominated the headlines, but the transition to net zero was the focus of discussion. Conversations ranged from heat pumps, to skill building for the transition, electrifying the grid, to battery storage, and debate around what’s holding us back from making progress.

However, beneath the detail was a rising panic among experts who see the very real risk of politicians using net zero as a tool to further polarise and divide the electorate. This is a new phenomenon, and it is a dangerous one. 

In recent years we have enjoyed, and have been the envy of other nations, for our political consensus on tackling the climate emergency, with net zero being a core pillar of this work. This consensus has been the UK’s ‘superpower’, according to the Rt. Hon. Chris Skidmore, who authored the Government’s report on net zero. This superpower allowed us to move faster, set ambitious goals, and present ourselves to global investors as a country with a credible plan to transition towards the economy we need. 

So, the government’s decision to roll back on net zero commitments is a bigger issue than a typical policy change. It is a calculated political move, in spite of public attitudes. The public remain unified in their support of reaching net zero – 66% are worried, or very worried1 about climate change and 83% think the government should continue its actions on net zero, or do more to reach net zero targets. Not only is the UK in danger of reneging on its commitments, but the government’s decisions and the rhetoric accompanying them, is dangerous and will further slow progress to what must be an urgent and coordinated response.

Meanwhile, any success in reaching Net Zero relies on all businesses, and businesses want certainty and clarity. Many see huge benefits and opportunities in the UK getting this right. This includes reducing their costs, attracting international investment and significantly reducing long-term risk. They are deeply concerned about the government’s position and its consequences. 

The government’s failure to honour climate promises, and the politicisation of Net Zero commitments, will undermine the partnership between business and government that is essential to our success. Shevaun Haviland, director general of the British Chambers of Commerce echoed this need for certainty when she talked about the UK meeting the challenge of Net Zero by 2050, saying: “We must have pragmatic goals, that business can be confident they will be supported to reach.”2

The government’s decision to turn its back on net zero commitments reflects a failure of leadership. In contrast at B Lab UK, we speak to business leaders every day who are modelling the leadership we all need. They are putting short-term interests aside in the interest of long-term commitments, strategic investment, and stability. They recognise that our most challenging problems cannot be solved by governments and nonprofits alone. Businesses need to be part of the solution. 

Leaders of companies across the UK are signalling that they are ready to act, with hundreds attending the recent Queue for Climate and Nature and supporting B Lab UK’s recent Business Is Not For Turning campaign.

At the heart of this is a movement of B Corp businesses leading the way in showing what an inclusive, equitable and regenerative economy could look like. By harnessing the power of business, B Corps commit to positively impact all stakeholders – workers, communities, customers, and our planet.

Alongside the B Corp community, B Lab UK also launched the Better Business Act in 2021, Since then, over 2,000 organisations, including Iceland, innocent drinks and the Institute of Directors, have joined the coalition, calling upon the government to change UK law to ensure every company in the UK aligns its interests with those of wider society and the environment. 

The Better Business Act is essential in accelerating the transition to net zero, empowering long-term decision making and encouraging investment into those businesses which are shaping Britain’s future economy. 

The message is loud and clear. We must set ambitious climate targets, and we must honour these commitments to deliver in partnership between government and business. Polarising the debate on net zero and politicising the transition undermines the trust that must underpin this work and squanders the economic opportunities for the UK. We will only achieve this transition by working together on solutions, and there is no better way of doing so than within a more inclusive, equitable and regenerative economy.