German multinational technology company, Siemens, has released its findings from a recent poll regarding different companies’ decarbonisation targets, as part of their Siemens Infrastructure Transition Monitor 2023.
Roughly 1,400 business leaders, including senior executives, that work for a company operating within 22 different countries around the world, were surveyed for the poll. The study was put in place to allow Siemens to get a clear image about how companies were progressing in regards to meeting their decarbonisation targets. Which have been set to be reached by 2030.
The poll has shown that nearly half (45%) of the companies surveyed were struggling to stay on target and had admitted that they were most likely going to miss the 2030 deadline. Responses from businesses within the UK have claimed that it is not completely their fault that they are struggling to meet their decarbonisation targets.
25% stated that they were not confident they would reach their target due to the risk of a recession occurring within the UK. 20% claimed it is due to the lack of investment that is being put into public infrastructure, 20% stated that there was a lack of accessibility to private capital, and 20% said that there was poor access to the skills needed to reach these decarbonisation targets. There was also 19% that stated that they were losing confidence due to the limitations that occur within the power grid.
Each of these factors are being described as significant barriers when it comes to businesses within the UK decarbonising, and many of these businesses are looking towards the government, as these factors, or barriers, are caused by political uncertainties and policies.
Although many admit they are struggling, 44% of the companies globally have claimed that they are expecting to meet their 2030 decarbonisation targets, and regarding much closer targets, 40% have claimed that they are likely to reach the targets they have set for themselves for this year.
After seeing the figures from the poll, Siemens’ UK and Ireland Chief Executive Officer, Carl Ennis stated that:
“We must support business and industry to decarbonise if
we are to successfully deliver the energy transition we need.
Progress is being made, but it’s evident from these findings that
the UK runs the risk of widening the gap between where we are
and where we need to be if we don’t start thinking longer term…
A clear industrial strategy is a key piece of the puzzle and would
give businesses the confidence to invest meaningfully in cutting
carbon, while boosting economic growth and productivity.
Over the next few years, adopting clean energy technology and digitalisation software that can help accelerate the transition to
net zero will become instrumental, and we need to give companies
the right platform to do so.”
Net Zero and Decarbonisation Policies
It is important to note that this poll was carried out before Wednesday the 20th of September, when the UK’s Prime Minister, Rishi Sunak, called for several net zero policies to be relaxed. This information could have led to the percentages in this poll being very different if completed after the relaxations of policies.
This announcement is already decreasing the little confidence many UK companies had when regarding decarbonisation. Many businesses have already put forward how they feel about the announcement claiming that this will negatively affect their efforts for decarbonisation. Green and sustainable groups have also shared their outrage for the Prime Minister’s unsustainable move, claiming that this will negatively affect the UK’s chance of becoming a world champion in the transition to net zero.
