LONDON: Only five percent of the top UK firms listed on London’s benchmark FTSE 100 index have issued net-zero plans that would be considered credible under government guidelines, consultancy EY found in a study.
The findings come as Britain targets carbon neutrality by 2050 and wants businesses to outline their plans to achieve this.
Although over 80% of UK-listed firms have committed to becoming net-zero by 2050, the majority – 95% – have not yet publicly disclosed detailed, actionable transition plans.
The Transition Plan Taskforce (TPT) framework, which aims to provide guidance to bring comprehensive plans in line with the UK’s net-zero target, has not yet been made mandatory by the government, despite hosting the COP26 UN climate summit in late 2021, where they vowed to ensure listed companies detail their plans.
The government’s new green strategy has postponed a second consultation meeting on the framework until later in the year.
UK govt, businesses urged to take urgent action
EY has urged both businesses and the government to take urgent action towards transitioning to net zero, warning that mandatory disclosure is a vital step in this journey.
The Study’s findings come after London announced a multi-billion-pound green plan last week, which updated its energy security plan to increase renewable and nuclear power.
However, political opponents and environmentalists have criticized the proposals for not going far enough and placing the 2050 target at risk.
In January, the CBI business lobby warned that Britain was lagging behind on green investment growth, particularly when compared to the United States and the European Union.
The Study highlights the need for businesses and the government to prioritize and take action toward transitioning to net zero to achieve the country’s climate goals.
