A recent survey from RSM UK reveals that nearly a third of UK middle market businesses lack a formal sustainability strategy, raising concerns about their commitment to achieving the North West’s ambitious net-zero targets. Despite the region’s goal to reach net zero by 2040, and cities like Liverpool and Manchester aiming for 2035 and 2038 respectively, 30% of businesses have yet to establish a sustainability plan. Among these, 25% plan to develop one within the next year, while 5% have no intention of creating a strategy at all. 

The survey also highlighted that almost a quarter of businesses (24%) have not set net-zero targets, missing out on potential efficiencies and cost savings that could result from reducing their emissions. However, 76% of respondents acknowledged that sustainability offers significant opportunities for their businesses, and 35% believe that having a sustainability strategy enhances their ability to access capital and investment. 

Kathy Hobbs, associate director and regional ESG lead at RSM UK, emphasized the importance of a collaborative approach across industries to achieve the North West’s net-zero ambitions. She noted that without investment and government support, businesses may struggle to meet these goals. 

Hobbs also pointed out that the North West has the potential to lead the UK’s efforts to combat climate change, particularly with its aim to establish the world’s first net-zero cluster. This initiative could drive job creation, attract investment, and stimulate economic growth. She stressed the need for a clear government strategy to enable businesses to confidently invest in sustainable practices, ultimately contributing to the UK’s overall net-zero objectives. 

With banks and private equity firms increasingly expecting companies to demonstrate robust ESG and sustainability strategies, it’s crucial for businesses to take action now to position themselves for future growth and investment opportunities. 

Sources: 

https://www.liverpoolchamber.org.uk/news/2024/08/north-west-businesses-need-sustainability-strategy-to-reach-ambitious-net-zero-targets-says-rsm-uk/ 

https://www.internationalaccountingbulletin.com/news/nearly-a-third-of-uk-businesses-have-no-sustainability-strategy/ 

https://www.wardhadaway.com/insights/news/sustainability-is-key-to-success-for-north-west-business/ 

https://finance.yahoo.com/news/nearly-third-uk-businesses-no-133522599.html