The Power of Partnership Unlocking Business Action On Net Zero Expert Advisory Group

The Power of Partnership
Unlocking business action on Net Zero
A report prepared by the Advisory

Business Group for the UK’s Climate
Change Committee
Chaired by Shevaun Haviland

June 2023
Background and purpose of this report
In the Autumn of 2022, the Climate Change Committeei – the UK’s statutory
independent advisor on climate change - convened an ‘Advisory Group on Business’
(AGB), comprised of senior leaders from a range of sectors, regions, and experience
across the UK.
The AGB was convened to share insights from their The scope of this work focuses primarily on the business
respective fields around the different ways in which UK response to Net Zero; however, the AGB recognised
businesses can accelerate progress towards Net Zero, that action on Net Zero should be considered as part
the barriers holding this back, and the opportunities of a step-change in the business response to climate,
that can be unlocked if business and Government take environmental and social challenges the world faces,
decisive action. These insights are intended to inform noting the particular importance of adaptation, nature,
a forthcoming report from the CCC on business action and biodiversity and just transition. It is anticipated that
on climate change but are also presented by the AGB the lessons and principles drawn from the AGB are also
to businesses, policymakers, and political parties as a relevant and useful in considering how to strengthen the
‘manifesto’ for strengthening business action on Net Zero. business response across these issues.
This paper summarises the insights developed from the

AGB over four discussions. The views and case studies
presented are that of the members of the Advisory Group
on Business and not necessarily that of the Climate
Change Committee.
Advisory Business Group Chair

Shevaun Haviland, Director General of the British Chambers of Commerce
Shevaun became Director General of BCC at the end Following this, she became a partner in a start-up digital
of April 2021. She joined BCC from the Cabinet Office innovation agency and venture builder, Independents
where she led Business Partnerships. She joined the United, where she also became an Advisor for the
Government in 2016 and also ran the Business team Danson Foundation. Most recently, Shevaun was
at No10 Downing Street and the Inclusive Economy the New Ventures Director for Avado, building new
Partnership. businesses in Edtech and founding the Academy of
Digital Business Leaders.
Shevaun started her career in consultancy in London
and New York. She then moved to the Walt Disney Shevaun has a passion for business as a force for good.
Company in strategic planning, before joining She is a social impact investor, a Trustee of Barefoot
Disneyland Paris, opening the second theme park. College International, and a board member of the
Shevaun then joined the agency world, running global Women of the World Foundation.
accounts for Millward Brown, Mindshare, and WPP.
3
AGB Membership
Deborah Allen
Group Director Climate and Environment, BAE Systems
Miranda Barker
CEO, East Lancashire Chamber of Commerce and Chair of RedCAT
Bukky Bird
Group Sustainability Director, Barratt Developments
Sarah Bradbury
Former Group Quality Director, Tesco
Ged Ennis
Director, Low Carbon Energy
David Finlay
Owner, Ethical Diary
Simon Gadd
Group Climate Change Director, L&G
Paul Gordon
Managing Director, Relationship Management, Business & Commercial
Banking, Lloyds Banking Group
Neville Hargreaves
Vice President Waste to Fuels and Business Development Director, Velocys
James Stephens
Vice President Corporate Affairs, DHL UK and Ireland
Alex Sutton
Senior Ethics and Sustainability Manager, John Lewis Partnership
Solitaire Townsend
Chief Solutionist, Futerra
AGB Secretariat and Report Production

CCC: Louis Worthington, Bea Natzler, Daisy Jameson
BCC: Alex Veitch
Members of the Business Advisory Group
5
IMPLEMENTING
Contents
Executive Summary 7
Introduction: The Five I’s to unlock business action on Net Zero 11
Cross Cutting Recommendation

The need for a new approach to business and Government collaboration on Net Zero 14
Opportunity 1
Integrity and transparency of impact and actions 15
Opportunity 2
Investment into Net Zero solutions 21
Opportunity 3
Implementing Net Zero through supply chains, procurement & infrastructure 27
Opportunity 4
Innovative industries and workers 33
Opportunity 5
Influence of business on society 38
6
Executive Summary
ACHIEVING NET ZERO REQUIRES CHANGE IN PARTNERSHIP AND TRANSFORMATIVE ACTIONS

ALL SECTORS
Taking each of the five “I’s in turn, the report explores
The UK is on the path to achieving Net Zero greenhouse how to unlock the potential of business and Government
gas emissions by 2050 – the target passed into law in 2019 partnership on the path to Net Zero. We summarise key
to end the UK’s contribution to climate change. Emissions drivers of action raised by AGB members, such as ethical
have already been reduced by almost 50%, but the Net factors, shareholder pressure, and taking advantage of
Zero pathway requires a 78% cut in emissions by 2035. future low-carbon technology opportunities. We also
Achieving Net Zero goes beyond the energy we produce – explore some of the barriers, including a lack of enabling
we’ll need to reconfigure our transport systems, homes, infrastructure, uncertainty over policy, or lack of finance.
businesses, and land, to change how we move people
and goods, how we heat our buildings, and how (and The report then suggests actions for businesses and
what) we produce and consume. policymakers informed by the experiences of the AGB
members, including a set of transformative actions
THE NET ZERO TRANSITION WILL CREATE NEW to maximise progress, and a cross-cutting action to
OPPORTUNITIES create new Government-business Net Zero partnerships
to accelerate progress. These recommendations are
The prize of Net Zero is not just a cleaner and greener accompanied by case studies from AGB members to shed
society, but also a more modern, more productive, more further light on the barriers and to showcase solutions.
efficient, and more prosperous economy, compared to We believe the recommendations represent a strong
the potentially astronomical costs of inaction on climateii. business offer and readiness to act, provided the right
For business, acting on Net Zero means more than policy framework is in place.
an exercise of ESG compliance - this is fundamentally
about commercial competitiveness and positioning
companies to seize the benefits that the transition will
bring. For Government, this is about the UK’s economic WE CALL ON THE BUSINESS COMMUNITY
competitiveness in the global race to attract private AND GOVERNMENT TO JOINTLY REFLECT
investment and grow the industries of the future. ON THESE PROPOSALS, SUPPORT AND
IMPLEMENT THEM, AND WORK TOGETHER
THE “FIVE I’S”: A NEW FRAMEWORK FOR ACTION FOR A NET ZERO FUTURE.
In this paper we set out a new framework, the “Five
I’s”, for business and Government to realise the full
potential of Net Zero. Businesses and Governments can
take responsibility and demonstrate integrity in their
purpose and actions to reduce emissions. This informs
smart investments which deliver bankable returns and
emissions savings. Customers and suppliers in the public
and private sector can implement Net Zero solutions
through procurement and collaboration across supply
chains, and develop the skilled industries and people
to innovate and develop Net Zero technologies and
products. Finally, business and Government can influence
the consumer and public behaviours needed for these to
be adopted at scale.
7
SUMMARY OF THE FIVE I’S
Summary of the Five I’s (Integrity, Investment,

Implementing, Innovative, Influence)
and recommendations for businesses and Government
CROSS CUTTING RECOMMENDATION: ESTABLISH GOVERNMENT-BUSINESS NET-ZERO PARTNERSHIPS

DESNZ and Cabinet Office: Set up a transparent and collaborative Net Zero partnership programme with business,
focused on accelerating the uptake and delivery of Net Zero solutions.
Businesses: Collaborate transparently with Government and competitors to solve shared Net Zero challenges
1 INTEGRITY
AND TRANSPARENCY OF IMPACT AND ACTIONS
BENCHMARK FOR BUSINESS ACTION FOR GOVERNMENT TRANSFORMATIVE ACTION
(B1) Large Businesses (G1) DESNZ (T1) Introduce a Net Zero test
Measure and disclose emissions Set clear, consistent proportional Businesses and Government
in their value chains (supporting requirements for large companies (Cabinet Office/ Number 10) should
smaller suppliers to provide to measure and disclose Scope 3 signal their commitment to Net
necessary information). emissions (with voluntary reporting Zero by placing a test on major
for SMEs). investments, spending, policies,
strategies and performance.
(B2) All businesses: (G2) DESNZ

Set ambitious, science-based targets Establish a set of robust, practical
and KPIs to reduce emissions, and definitions and certifications of
integrate these within performance Net Zero target/pledges for UK
appraisals. businesses to adopt on a voluntary
basis – directing business to
certification schemes which meet
the UK definition.
(B3) All businesses (G3) DESNZ

Develop appropriate plans to reduce Implement the Transition Plan
emissions and deliver targets, and Taskforce standard for larger private
integrate these within core business and listed companies and provide
strategies. suitable guidance to businesses to
report effectively.

Only use high-integrity carbon Introduce clear guidance and, if
credits where direct emissions necessary, regulation to encourage
reduction are not yet viable. the appropriate use of carbon
credits in line with CCC advice.
8
2 INVESTMENT
INTO NET ZERO SOLUTIONS
(B5) Large companies and (G5) DESNZ and HMT (T2) Reforms to tax and finance
investors Work with industry specialists to HMT: To unlock the potential
Shift and scale investments into co-develop technology route maps of the UK’s financial sector and
viable low-carbon sectors, products and implement an internationally business investment behind Net
and technologies. compatible Green Taxonomy to Zero, the Government should
signpost investors towards low- implement targeted reforms to the
carbon investment opportunities. tax incentives, capital allowances
and lending criteria, as part of
a renewed Net Zero industrial
(B6) All businesses (G6) DESNZ and HMT strategy
Increasingly invest in low- Ensure the balance of incentives
carbon solutions as part of asset encourages investments into low- Private investors and financial
replacement or upgrade cycles. carbon assets, and provide access institutions:
to low-cost public backed loans and Stand ready to leverage their
grants for SMEs to finance their Net balance sheets to significantly scale
Zero plans. investments into Net Zero sectors
and technologies.
3 IMPLEMENTING
NET ZERO THROUGH SUPPLY CHAINS, PROCUREMENT, AND INFRASTRUCTURE
(B7) All businesses (G7) DESNZ and OFGEM (T3) Prioritise Net Zero within
Rapidly implement cost-effective Accelerate the delivery of key Net procurement
Net Zero solutions within their Zero infrastructure and remove Cabinet Office: Further extend
operations. key barriers such as delays to the and strengthen requirements on
consenting process for Net Zero climate change in the National
infrastructure or assets. Procurement Policy Statement.
(B8) Larger businesses and smaller (G8) DESNZ

businesses Significantly enhance provision
Collaborate to enable adoption of support to SMEs to access the
of Net Zero solutions throughout resources and advice they need to
supply chains. understand and implement Net Zero
solutions .
9
4 INNOVATIVE
INDUSTRIES AND WORKERS
(B9) All businesses (G9) DESNZ and DSIT (T4) Take a strategic approach to
Direct their ingenuity and resources Review the provision of funding and national innovation priorities
into solving key Net Zero challenges, finance for Net Zero R&D, early and
with larger companies piloting mid-stage innovation and late-stage DESNZ and DSIT: Clarify a set
emerging technologies. commercialisation. of strategic national Net Zero
innovation priorities where UK
has a competitive advantage, and
provide enhanced innovation
(B10) All businesses (G10) DESNZ funding, finance and supportive
Actively consider future skills Set out a plan to deliver the pipeline regulation to bring this forward at
requirements in their sector and of skilled people needed to design, pace.
work with Government to inform develop and deliver Net Zero
and fund appropriate training and solutions.
qualifications.
5 INFLUENCE
OF BUSINESS ON SOCIETY
(B11) All businesses (G11) DESNZ and DCMS (T5) Government and business
Channel consumer influence in Coordinate a long-term public work together to create compelling
support of Net Zero societal changes engagement strategy for Net Zero consumer offer on Net Zero,
and technologies – helping to in partnership with media and the incentivising and empowering
educate, encourage and enable the business community. the public to adopt lower carbon
public. lifestyles and products.
(B12) All Businesses (G12) DESNZ and DIT

Advocate for supportive regulation Implement robust, effective
and policy to strengthen private regulation to bring slow-movers
sector action on Net Zero. along and create a level playing field
with our competitors at home and
abroad.
10
Introduction: The Five I’s to unlock business action on Net Zero
The UK is on the path to achieve Net Zero greenhouse gas emissions by 2050 – the
target passed into law in 2019 to end the UK’s contribution to climate change, in
line with the goals of the Paris Agreement. Emissions have already been reduced by
almost 50%, at a faster rate than any other G7 countryiii, achieved largely through
phasing out coal power almost entirely from our electricity system whilst becoming
one of the largest producers of wind energy in the worldiv.
The path to Net Zero requires a 78% cut in emissions by expected to provide the majority of investment required
2035, which will involve more significant changes across to build the Net Zero economyviii.
every area of the economy. This goes beyond the energy
we produce; we’ll need to reconfigure our transport UK businesses have demonstrated clear intent - four
systems, homes, businesses, and land to change how we in five FTSE100 and 40% of SMEs are committed to Net
move people and goods, how we heat our buildings and Zero; but it’s not enough for us to set targets, we have
how (and what) we produce and consume. to back these up with meaningful and effective plans
and actions. Currently, only 5% of large companies have
These changes will inevitably create winners and losers, credible Net Zero plans in placeix, and only 26% of SMEs
which will require careful management, but the prize of have measured emissionsx, reflecting that business is
Net Zero is not just a cleaner and greener society, but also on a journey and different businesses will be at different
a more modern, more productive, more efficient, and stages in their response to Net Zero, and reflecting the
more prosperous economy. The recent review by Chris importance of decisive action from Government.
Skidmore reiterated the strong economic case for timely
delivery of Net Zerov, and this is before we consider the It will not be achieved overnight but for business it starts
potentially astronomical costs of inaction on climatevi. with strong leadership – by taking responsibility for our
impact, aligning our investment strategies, driving
For business, acting on Net Zero means more than an real change through our operations and supply chains
exercise of ESG compliance - this is fundamentally about and committing our ingenuity and expertise to scale
commercial competitiveness and positioning companies up the adoption of new technologies and behaviours
to seize the benefits that the transition will bring. On throughout society.
top of a genuine desire to address societal issues, this
includes opportunities to realise cost savings through Most business leaders want to do the right thing, they
operational efficiencies and responding to risks to want to be part of the solution and not the problem;
profitability (e.g. stranded assets), through to tapping but the reality is that businesses need to be profitable
into new global markets for low-carbon products and in order to exist, and in some areas they lack the tools,
services – worth an estimated £1trn to the UK by 2030vii. resources or agency to enact change. That is why to fully
Action is not optional – the markets are shifting, many unleash the power of British business in support of Net
customers and investors are calling for us to act, and if we Zero, businesses need Government to provide the right
don’t act then regulation will force us. conditions and clear signals.
Business’ role goes far beyond just reducing our own This means implementing coherent policies – for
direct emissions. For example, large corporations can example by granting planning consent to wind farms not
use procurement and investment to create demand coal mines; removing barriers – by providing access to
for - and lower the cost of – low-carbon technologies; finance, reliable information and modern infrastructure;
smaller businesses can design and deliver the Net Zero ensuring the right balance of incentives are in place
innovations that society needs; while businesses of all – for example to switch from gas to electricity and to
sizes can direct their business models and practices to sell electricity back to the grid; and maintaining a level
enable and encourage consumers to adopt low-carbon playing field – by aligning regulation to support higher
lifestyles. More broadly, the private sector as a whole is ambition. SMEs, in particular, need greater clarity on
11
INTRODUCTION
future policies, expectations, and regulations, as well as The Government’s recent ‘Green Day’ announcements
support to make the transition. Anything less will see were a step in the right direction – in particular we
international investors looking elsewhere, leaving British welcome the updated Green Finance Strategy, plans to
businesses behind in the race to capitalise on new Net require large companies to produce transition plans and
Zero markets and technologies, and leaving the UK facing the forthcoming Green Taxonomy – but Government must
a more expensive and disruptive transition. be more ambitious, more flexible and more focused in its
approach, if we are to see a step change in investment
Other major economies are moving quickly to gain a and private sector action, where both Government and
competitive advantage in the transition to Net Zero – private sector take responsibility for action.
we’ve seen the Inflation Reduction Act supercharge green
investment in the US, and the EU have followed this with It Is a pivotal moment for the UK to determine whether
their own Green Industrial Planxi while each year China we can be a driver or a passenger in this global race to
ploughs $100bns into green technologiesxii. Whilst the Net Zero. It’s crucial that businesses understand the
UK can’t match the spending power of these economies, commercial opportunities on the path to 2050, and the
we need a more decisive response that leverages the role they can play, and we need a step-change in policy
UK’s many strengths in key areas such as energy, finance, to enable, encourage and enforce the private sector’s
engineering, professional services, media, cutting edge response. The ‘Ambition Loop’ framework, developed
manufacturing and research and development. by the We Mean Business coalition and World Resources
Institute, is a useful tool for conceptualising this potential
positive feedback loop between bold policies that can
drive private sector action (Figure 1).
Figure 1. The Ambition Loop. Credit: WRI, UN, We Mean Business Coalition
12
INTRODUCTION
In this paper we set out our interpretation of the business Against each “I” we set out our suggested benchmarks
side of the ambition loop, the Five I’s, intended to serve for business that we as a group of companies are
as a manifesto for business and Government to realise the striving towards and call on all businesses to implement.
full potential Net Zero in the UK (Figure 2): Recognising that there remains a range of barriers to
businesses adopting more ambitious action on Net Zero,
The I’s are intended to be taken together rather than each benchmark action for business is tied to an action
viewed in isolation, starting with businesses and for Government to unlock the opportunity.
governments taking responsibility and demonstrating
integrity in their purpose and actions. This informs smart Reflecting the urgent need to deliver a step-change in the
investment decisions into Net Zero solutions which deliver UK’s progress towards Net Zero, we have also identified
savings and returns. Customers and suppliers can work one transformative action for each ‘I’ which spans
together to implement Net Zero solutions through our across both business and Government action, alongside
operations and value chains. Taken together these first a cross-cutting recommendation to strengthen
three “I’s” are about ‘getting your own house in order’, Business-Government collaboration through a Net
but businesses can also enable the transition in wider Zero partnership approach.
society by working with Government to innovate the
technologies and influencing the consumer and public These suggested actions and asks have been informed
behaviours needed for these to be adopted at scale. by the experiences of the AGB members and are
accompanied by a set of case studies from across our
businesses to shed light on the barriers and how these
can be addressed.
Figure 2. The Five “I”s for business action
Integrity
Invest
Implement
Innovate
Influence
13
Cross-cutting Recommendation:
Business and Government Net Zero Partnerships
Throughout our discussions, members consistently reflected on the urgency

and scale of the Net Zero challenge – from putting in place the necessary energy
infrastructure to support a decarbonised power system, to engaging the public to
inform, encourage and enable them to adopt low-carbon lifestyles.
Members were clear that the current approach is not highlighted good practice from Denmark, described in
working, citing the long delays for energy projects to the case study below, which informs our cross-cutting
secure grid connection, the critical skills gaps limiting recommendation for Government to establish a series of
the uptake of new low-carbon heating technologies, partnerships set around Net Zero delivery priorities. This
and delays over key policy decisions such as the Future can facilitate a much more streamlined dialogue between
Homes Standard and zero-emission vehicle technologies. policymakers, regulators and businesses – allowing
Government to drive coordination, and draw on the
Members discussed the need for a more focused private sectors expertise, spurring the positive feedback
approach from Government on Net Zero delivery and loop conceptualised in the ‘Ambition Loop’. Government
considered the opportunity for the private sector to and business should work together on developing the
facilitate this. Members heard examples from overseas shape of these partnerships, so they are designed in a
where the private sector and Government have worked way that maintains broad buy-in, credibility and integrity.
together to tackle key delivery priorities. Members
CROSS CUTTING RECOMMENDATION: ESTABLISH BUSINESS-GOVERNMENT NET-ZERO PARTNERSHIPS

DESNZ and Cabinet Office: Set up a transparent and collaborative Net Zero partnership programme with business,
focused on accelerating uptake and delivery of Net Zero solutions.
Businesses: Collaborate transparently with Government and competitors to solve shared Net Zero challenges.
Photo: Nicholas Doherty
14
CROSS-CUTTING RECOMMENDATION
INTERNATIONAL CASE STUDY
Business and Government working together to deliver Net Zero priorities:

Climate Partnerships model, Denmark
Denmark has set ambitious targets to cut emissions Proposals from the Partnerships were intended
by 70% by 2030, on the route to achieving Net Zero to set out what sectors and business actors can
by 2050. Once entirely dependent on imported oil do to reduce emissions, alongside a set of asks for
and other fossil fuels, Denmark today generates Government to address barriers to put key enabling
more than 30 per cent of its energy needs by policy in place. Within the space of just a few months,
renewable energy sources. Recognising that and after an intensive cross-sector engagement
the challenge to achieve Net Zero will involve exercise, the Partnerships produced their initial set of
faster, deeper transformations across the entire proposals in March 2020 – including over 400 concrete
economy, the Government recognised that effective recommendations to accelerate action. The Government
collaboration between policymakers and the private decides what recommendations to take forward and
sector is key to achieving success – from developing while not all have been adopted, many have been.
and trialling innovative solutions, through to scaling Importantly, this call and response interaction between
and supplying these throughout the economy. business and Government should be seen as an ongoing
relationship rather than a stand-alone exercise.
In response to this, in 2020 the Danish Government
decided to establish a programme of ‘Climate The process has drawn out some valuable lessons,
Partnerships’, building on the country’s tradition of including for the Government, such as: the importance
open and trusting public-private partnerships. Climate of setting ambitious goals, having a clear scope,
Partnerships were established for 14 sectors of the effective governance and sufficient support for
economy, and relevant private-sector actors – from the project, with a clear plan for taking forward
construction to commerce to food and agriculture to recommendations; and for the private sector, such as:
finance, were invited to work together in developing a set to have well defined sector groups with broad buy-in
of proposals for how their sector can contribute towards from a range of actors, to allocate sufficient resources
meeting the country’s climate goals. and to set clear priorities and direction.
For more information, visit

https://climatepartnerships2030.com/
15
OPPORTUNITY 1
Integrity
and transparency of
impact and actions
INTEGRITY
THE OPPORTUNITY
Members agreed that businesses that integrate an effective response to Net Zero KEY STATISTIC
can gain a competitive edge, by being well positioned to reap benefits such as
first-mover advantage in green technology and managing risks and reducing OVER HALF
costs of the transition. They also agreed that a more coherent and decisive
approach to Net Zero from the Government would boost business confidence OF BUSINESS
and accelerate the transition. LEADERS SAID
COMMITTING TO
SUMMARY OF MEMBERS’ VIEWS
THE SCIENCE
Members recognised that effective business action on Net Zero starts by taking
responsibility for their emissions and integrating credible targets, plans and BASED TARGETS
actions to reduce emissions into their core business strategy and performance.
This means effective measurement and reporting of all relevant emissions across
INITIATIVE (SBTI)
Scopes 1 - 3, setting science-based Net Zero targets, and disclosing transition GAVE THEM A
plans which identify concrete actions to reduce emissions and only rely on high-
integrity carbon credits as a last resort. COMPETITIVE
The main drivers for business action that members identified were: ADVANTAGExiii.
• Ethical factors such as the desire to use business to address societal
challenges such as climate change.
• Importance of understanding future opportunities and risks to business.
• Investor and shareholder pressure to understand and address business
impacts.
• Expectations from the prospective workforce around the need to act on
societal issues.
• Statutory regulations and requirements on reporting and disclosure – where
these are not overly burdensome and genuinely relevant.
The key barriers to business action that members identified were:

• Misconceptions or limited understanding about what Net Zero means and why
it matters.
• Complexity of accurately measuring the entirety of Scope 3 emissions – with
lack of consistent, reliable guidance, methodologies and data (such as
emissions intensities) to inform foot-printing assessments.
• Inconsistency among the numerous competing initiatives and certifications
available for companies to demonstrate that they have robust plans in place
to reach Net Zero (at individual level and/or sector level), which makes it
difficult for business to assure quality and compare. Members cited more than
60 carbon calculators available for the agricultural sector alone.
• Smaller businesses typically lack the resources, time and capabilities to meet
complex and intensive reporting requirements.
• Shareholder pressure and reporting cycles, which leads to focus on short
term profitability and can mean that Net Zero is treated as a secondary or
long-term issue. Ensuring Net Zero makes good business sense will be key to
addressing this – as we discuss under “Investment”.
• Lack of clear guidance or standards for governing high-integrity use of carbon
creditsxiv.
• Lack of a clear ‘golden thread’ of Net Zero throughout spending, legislation,
and policy, as well as sometimes inconsistent Government communications
and signalling on the importance of moving to Net Zero.
Members recognised the central role for Government in setting consistent

methodologies and standards and in providing the necessary tools and guidance
for business. Members also recognised that Government can set a strong
example to business by ensuring that Net Zero is reflected in the integrity of
decision making across Whitehall.
17
INTEGRITY
ACTIONS FOR BUSINESS AND GOVERNMENT

(B1) Large businesses (G1) DESNZ (T1) Introduce a Net Zero test
Measure and disclose emissions Set clear, consistent, proportional Businesses and Government
in their value chains (supporting requirements for large companies (Cabinet Office/ Number 10) should
smaller suppliers to provide to measure and disclose Scope 3 signal their commitment to Net
necessary information). emissions (with voluntary reporting Zero by placing a test on major
for SMEs). Address barriers to investments, spending, policies,
effective reporting such as requiring strategies and performance.
to provide business tenants with
relevant energy and emissions
information and clarifying what
emission sources and intensities to
incorporate.
(B2) All businesses: (G2) DESNZ

Set ambitious, science-based targets Establish a set of robust, practical
and KPIs to reduce emissions, and definitions and certifications of
integrate these within performance Net Zero target/pledges for UK
appraisals. businesses to adopt on a voluntary
basis – directing business to
certification schemes which meet
the UK definition.

Develop appropriate plans to reduce Implement the Transition Plan
emissions and deliver targets, and Taskforce standard for larger private
integrate these within core business and listed companies and provide
strategies. suitable guidance to businesses to
report effectively.

Only use high-integrity carbon Introduce clear guidance and, if
credits where direct emissions necessary, regulation, to encourage
reduction are not yet viable. the appropriate use of carbon
credits in line with CCC advice
that credits should not be used
as a substitute for direct business
emissions reduction, and they
should be “high-integrity” nature-
based, biological solutions and
engineered removalsxv.
18
INTEGRITY
CASE STUDIES FROM MEMBERS
A journey to carbon neutral certification: Ethical Dairy, dairy farm

Rainton farm is situated in Southwest Scotland midway • All ploughing and deep cultivation has ceased, being
between Dumfries and Stranraer and a mile from the replaced by minimum tillage for pasture reseeding –
Solway coast. This tenanted farm extends to 850 acres of minimising soil carbon loss and biome disruption.
which 100 are mixed broadleaf woodlands mostly planted
• All organic farm waste is composted as a liquid in the
in the past 25 years, 250 of rough grazing and scrubland
micro anaerobic digester and applied to the pastures
and 500 of low-grade permanent pastures. The farm
using low ground pressure placement technology
is a mixed ruminant livestock farm carrying 130 dairy
and only during the growing season – maximising
cows and plus 280 breeding sheep and has been farmed
nutrient utilisation and soil conditioning. Methane
organically for the past 25 years, recently transitioning
from digestion of organic waste is collected and used
to being audited 100% pasture fed. No cereals, soya,
to raise hot water for washing and heating.
pulses or seeds are fed to the livestock, however a small
amount of dried and pelleted lucerne (a leafy herb) is After an initial crash in farm productivity of 30% post-
purchased as a feed supplement for the cows. organic conversion, productivity gradually returned to
achieve an equivalent output but with reduced cost and
It has been the objective of the farmers at Rainton to
thus improved profitability. Moving from a dependency
attempt to achieve a net zero carbon status for the
on purchased inputs to drive production, to a more
farm while simultaneously regenerating soil health,
resilient, self-sufficient, closed-loop food system, has
enhancing biodiversity, raising animal and worker
also delivered much greater business resilience and
welfare standards (well above industry norms),
security of food production.
profitably. This journey has not been without its
challenges, but as we have developed a stronger
The farm has undertaken multiple independent
understanding of the requirements and solutions at our
assessments of their efforts to achieve Net Zero. Doing
disposal, progress has accelerated in recent years:
so has highlighted a significant degree of variation in
• Organic matter levels of the soil (which relate directly the methodologies applied in carbon foot-printing,
to soil carbon) had been recorded from before the including with regards to what emissions are included
transition began 25 years ago and have shown a within the scope of the assessment and what
gradual increase across the farm from 11% organic emissions factors are assumed. This lack of consistency
(quite a high amount even for the west of Scotland) contributes to undermining the credibility and
matter to 14% today. comparability of Net Zero certifications, and prevents
businesses who have made genuine progress from
• 35,000 mixed broadleaf trees have been planted on
getting the appropriate recognition.
the poorest (agriculturally) 10% of the land. These
were for carbon sequestration, biodiversity and
Despite this, this experience shows that even on a
amenity.
mixed ruminant livestock farm, it is possible to support
• As a registered and audited organic farm, soluble the transition to Net Zero carbon whilst growing the
fertiliser applications and weedkiller use ceased. bottom line. The potential for almost any non-industrial
Gradually, through management changes, the farming system to replicate this is very real, but requires
need for pesticides and anti-biotic fell by 95%. The a fundamental system change, which in turn requires a
requirement for ground limestone applications to change in management mindset. This can only happen
maintain soil pH has fallen by over 80%. Eliminating with clear direction, incentives, and planning from the
the need for synthetic fertiliser avoids emissions Government.
associated with their production. Purchased feed has
been reduced by 75% - reducing the carbon footprint
of our feedstock.
19
IMPLEMENTING
INTEGRITY
Integrating a response to Net Zero: John Lewis Partnership, retail business

The John Lewis Partnership is the UK’s largest published in its annual reports. The interest rate of the
employee-owned business that trades under two Partnership’s £420m credit facility is also directly linked
retail brands, John Lewis and Waitrose. Since its to performance against its climate targets. 
inception, the Partnership has been a purpose-led
business, and its customers and stakeholders hold The Partnership is embedding Net Zero considerations
high expectations about its way of doing business. into its financial planning and decision-making
As such, the Partnership has held a longstanding frameworks; for example by requiring project teams to
commitment to reduce greenhouse gas emissions state any relevant impact within their business cases,
from its operations.  prior to approval. Its climate action is focused on
materiality and seeks to align with asset replacement
Senior leadership and accountability of businesses’ Net cycles and category planning to scale action. To achieve
Zero targets and plans is important for delivering and the Partnership’s commitment to Net Zero in its direct
scaling climate action. In October 2021, the Partnership’s operations by 2035, 61% of its heavy trucks now run
Chairman, Dame Sharon White, signed the Business on biomethane; the Partnership procures renewable
Ambition for 1.5°C and committed to set science-based electricity; and it has introduced electric vehicle and
targets for its operations and global supply chains. At heat pump trials. Integrating Net Zero considerations
the end of last year, the Partnership’s board-level Ethics into the Partnership’s performance reporting and
and Sustainability Committee (ESC) approved its climate internal approvals promotes transparency and
targets for submission to the Science Based Targets balanced decision making for the Net Zero transition.
Initiative (SBTi) for validation. These approved targets,
and their pathway to Net Zero, follow the latest science, To reduce the climate impact of its supply chain (scope
guidance and recommendations of SBTi, entirely aligned 3) emissions, the Partnership is collaborating with
to 1.5°C and incorporate the latest forest, land and suppliers and wider industry. The Partnership recently
agriculture guidance. joined Manufacture 2030 and is supporting suppliers
representing at least 50% of Waitrose emissions to
To drive performance of its science-based Net Zero set their own science-based net-zero targets by 2025
targets, the Partnership has a number of public-facing through the WWF Retailers’ Commitment for Nature.
shorter-term targets for key emissions sources. For Scope 3 reporting is vital for tackling climate impact
example, it has targets for a fossil fuel-free fleet, in product supply chains but is also highly complex.
hydrofluorocarbon (HFC)-free refrigeration, zero Looking ahead, providing clear guidance on Scope 3
deforestation, and sustainable raw material sourcing. measurement, transition plans and Net Zero definitions
The Partnership’s performance against its ethics will support consistency and standardisation across
and sustainability targets is governed by its ESC and suppliers, supply chains and industries.
A zero-emisson delivery van. Photo: John Lewis Partnership
20
OPPORTUNITY 2
Investment
into Net Zero solutions
INVESTMENT
THE OPPORTUNITY
KEY STATISTIC
Members agreed that businesses who invest in commercially-viable Net Zero
solutions can decarbonise their Scope 1 and 2 emissions, have the potential to
realise operational efficiencies and generate returns from emerging low carbon
THE PRIVATE
sectors. In doing so, the private sector has the potential to provide the majority SECTOR IS
of investment needed to deliver Net Zero in the UK.
EXPECTED TO
PROVIDE THE
Members agreed that business investment is mission-critical to delivering MAJORITY OF
the Net Zero transition, and that government has a crucial role to play in
incentivising this investment. Businesses will increasingly choose low carbon
THE £50BN PER
alternatives within asset replacement and upgrade-decisions as low-carbon YEAR (BY 2030)
options become increasingly cost-competitive and if access to finance is
provided – although appropriate incentives are also important in ensuring INVESTMENT
investments had a sound business case.
REQUIREMENT
The main drivers for business action that members identified were: TO DELIVER NET
• The importance of securing a return on investments.
• The need to protect the ‘bottom line’ – investments need to make sound ZEROxvi.
business sense – businesses need to be profitable.
• The opportunity to achieve cost savings and operational efficiencies – for
example members cited the rising cost of energy as an incentive to improve
energy efficiency, but also noted that unmanageable energy costs also act as
a barrier, absorbing capital/finance and preventing companies from investing
in alternatives.
• The desire to support and grow new industries and businesses.
The key barriers members identified were:

• Uncertainty over technology pathways (near, medium, long term) to Net
Zero which undermines confidence to invest – such as clarity on dates for
commercial properties to phaseout gas boilers and reach minimum energy
efficiency standards, clarity on new home standards post 2025, a plan to deal
with the existing housing stock and clarity on zero-emission requirements for
cars, vans and HGVs post 2030.
• A lack of focus on transitional technologies where zero emissions alternatives
are not economic or operationally viable.
• Uncertainty over long-term funding availability which undermines confidence
to invest – such as the energy efficiency schemes which have regularly been
revised or relaunched.
• Inadequate incentives for Net Zero solutions meaning that many investment
decisions lack a positive business case, for example feed in tariffs for onsite
electricity generation are too low, electricity prices for industrial users
are higher than gas and in general lower carbon purchase or behavioural
decisions remain more expensive than higher carbon alternatives.
• High energy costs, which have squeezed businesses’ capacity to invest in low
carbon solutions.
• The high up-front cost associated with many low carbon investments, particularly
for SMEs. Many SMEs will need financial support such as loans or grants to enable
them to invest, ranging from hundreds of pounds for efficient lighting systems,
to thousands for retrofitting renewables or more efficient heating solutions.
• Limited use of public balance sheets to help underwrite low-carbon
investments and provide more favourable green loans.
• Constraints on banks and financial institutions to lend or invest in low-carbon
sectors or technologies.
22
INVESTMENT
Members recognised the important role for Government in putting in place the
necessary policy signals for driving investment, and the need for long-term
approach to policy-making to build investor confidence. Members called for
product phase-out dates to be accompanied with value-chain route-maps –
developed in collaboration with industry – to help businesses plan for and manage
their investments. The automotive sector was highlighted as an example of
where such plans have been developed, with the Automotive Council developing
route-maps to support the transition away from the sale of new petrol and diesel
vehicles. This approach could be adopted across different sectors.
Members also recognised the important role for Government in ensuring SMEs
have access to the necessary finance to implement Net Zero plans, with various
options suggested for how the government could facilitate this. Ideas included
providing a “kite mark” for trusted providers of Power Purchase Agreements;
adding Government guarantees to underpin certain qualifying green loans for
banks; and supporting more favourable capital treatment of Net Zero aligned
loans by banks to help accelerate support for financing the transition and
recognise the positive impact on risk over time.
Members also highlighted the potential for Government to unlock greater

levels of green finance through targeted tax incentives, and reforms to enable
additional capital lending from pension and insurance funds.
Photo: Gary Ellis
23
INVESTMENT

(B5) Large companies and (G5) DESNZ and HMT (T2) Reforms to tax and finance
investors Work with industry specialists to co- HMT: To unlock the potential
Shift and scale investments develop technology route maps and of the UK’s financial sector and
into viable low-carbon implement a Green Taxonomy to signpost business investment behind Net
sectors, products and investors towards low-carbon investment Zero, the Government should
technologies. opportunities. implement targeted reforms to the
tax incentives, capital allowances
Technology route maps should build on and lending criteria, as part of
good practices (e.g. from the automotive a renewed Net Zero industrial
council) and be informed through strategy.
collaboration with industry and expert
sector bodies. The route maps should Private investors and financial
set out the key steps to Net Zero for each institutions:
sector and priority actions, underpinned Stand ready to leverage their
by appropriate mandates for critical balance sheets to significantly scale
outcomes. investments into Net Zero sectors
and technologies.
The UK Green Taxonomy must be
compatible with international equivalents
and direct businesses towards appropriate
transitional investments.
(B6) All businesses (G6) DESNZ and HMT

Increasingly invest in low- Ensure the balance of incentives
carbon solutions as part encourages investments into low-carbon
of asset replacement or assets and provide access to low-cost
upgrade cycles. public-backed loans and grants for SMEs to
finance their Net Zero plans.
On strengthening incentives; for example

interventions including ensuring low-
carbon electricity is more affordable
than gas, ensuring feed-in tariffs (e.g. for
solar) are sufficient to encourage on-site
generation, and ensuring the price of
carbon is more adequately reflected in
products and services across the economy.
On providing greater access to finance;

for example interventions include greater
use of the balance sheet of existing public
institutions, such as Local Authorities
and the British Business Bank. In Wales,
Business Wales and Welsh Development
Bank have linked favourable lending offers
to businesses committing to implement
measures to improve energy and resource
efficiency.
24
INVESTMENT
Scaling up green finance: L&G, financial institution

Legal & General is an active investor from its own ground source heating (Kensa), photovoltaic cells
balance sheet, across a range of asset classes, including for solar panels (Oxford PV), electric vehicle charging
private equity, private credit and infrastructure debt. (PodPoint), battery management systems (Brill Power),
We see a significant opportunity to invest in technology subsea robotics for the offshore wind sector (Rovco),
and infrastructure climate solutions, which both housing retrofit solutions (Sero) and several others.
support the transition to a low-carbon economy and
help mitigate our exposure to climate risk. The debt However, we would like to do more. Financing of clean
investments are used to match our long-dated illiquid energy infrastructure in the UK often gets delayed
annuity style liabilities to pay our customers pensions, or even cancelled due to local planning delays or
which are ideally suited to the patient capital required restrictions, or delays in obtaining grid connections.
to finance low-carbon infrastructure. The private equity
investments come from our stock of surplus capital, As the debt investments are backing customer
where we can be flexible over the return profile. liabilities, we have to comply with Solvency II Insurance
capital rules which currently prescribe the assets must
We invest in start-up or smaller companies that need have fixed cash flows, which significantly restricts
capital to scale up their businesses and their positive which infrastructure assets we can invest in. In Q4 2022
transition impact. These SME businesses need patient UK Government announced proposals to allow more
capital and other forms of support a large company flexibility in the requirements such that assets only
can provide. These new technologies, scaled up, will require highly predictable cash flows and there is less
be critical to achieving the decarbonisation of the penal treatment if the asset has credit rating below
economy needed to achieve Net Zero. investment grade, which should bring a wider range of
renewable energy and other low carbon infrastructure
In infrastructure debt, we have invested over £1bn in investments in to scope for insurers to invest in.
clean energy projects, including solar and wind farms, However, it is important the government ensures the
geothermal plants, smart networks and energy storage Prudential Regulatory Authority implements these
assets. In the private equity space, we have successfully proposals into its supervisory framework in a pragmatic
invested at the early stage in a diverse portfolio of fashion to maintain their potential benefits.
businesses in key sectors of the transition, such as
25
IMPLEMENTING
INVESTMENT
Decarbonising Logistics: DHL, logistics company

DHL is part of the global DPDHL Group, operating in delivers c.80%5 reduction in carbon emissions when
over 220 countries and territories worldwide. Our fuelled with bio-methane, and up to 13% with fossil
family of divisions offer an unrivalled portfolio of gas. Several UK operators, including the John Lewis
logistics services spanning four key product offerings, Partnership and DHL, have started making investments
including international express parcels; supply chain in bio-methane, with the latter committed to having 500
services; intercontinental air; and sea freight. As a gas powered vehicles within their fleet by 2025.
Group we have an ambitious target to reach net zero
logistics by 2050 and in 2021 we committed to spend This technology is proven and on UK roads today,
EUR 7 billion by 2030 to accelerate our transition to already reducing HGV carbon emissions. However, there
low carbon operations. We continually look at ways to is a lack of refuelling infrastructure for these fuels across
reduce emissions through efficiency measures such as the UK. The Government needs to work with industry to
fuel optimisation and carbon neutral building design, ensure these bridging technologies are more accessible,
whilst investing in the latest technologies such as by accelerating the provision of a national refuelling
Sustainable Aviation Fuel for our air operations and infrastructure, which is currently limited to a small
electric vehicles and biofuels for our road operations. number of highway service stations.
At the end of 2022 there were over 40 million1 vehicles Looking ahead to the roll out of fully zero emissions
on UK roads and whilst there are increasing zero HGV fleets, there needs to be continued and meaningful
emissions options for cars and vans, these are far more support for the uptake of zero emission technologies.
limited for the HGV sector. With 589,0001 HGV registered Businesses are ready and willing to invest in these
in the UK there is a significant challenge to effectively technologies but often the wider cost of ownership,
decarbonise them. energy prices, onsite charging and electricity grid
upgrades can be a barrier. Government can play a
There are some zero emission technologies available, role in making these investment decisions simpler, by
such as the Volvo FM fully electric HGV in operation supporting the continued investment in green energy
with DHL2 (pictured). With a range of 180 miles, this generation and the development of a robust energy
offers a solution for the shorter range and urban grid. This would ensure that electric vehicles are truly
routes, but does not yet offer a solution for the longer zero emission and operators can access the energy they
range and heavy use cases. Other technologies such require to decarbonise their fleets.
as hydrogen combustion and fuel cell electric also
offer opportunities for zero emission operations with
potentially greater ranges, according to the Automotive
Council’s technology roadmaps3. We recognise the
need to eventually fully transition our fleets to zero
emission vehicles; however, today capital costs for
an electric HGV are currently roughly three times that
of a diesel vehicle with a reduced range. Producing
zero emission HGVs for all use cases in a cost and
operationally efficient manner is still expected to be
10-15 years4 away. Therefore, operators face a challenge
to decarbonise their fleets and must look at other
alternative ‘bridging technologies’ to reduce their HGV
carbon emissions whilst zero emission technologies and
infrastructure further mature, and costs improve.
Bio-methane, both in its Liquified Natural Gas (LNG) and

Compressed Natural Gas (CNG) forms, has the potential A zero emissions delivery vehicle. Photo: DHL
to be one of these key bridging technologies, which
1
https://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT-FACTS-Dec-2022.pdf
2
https://www.dhl.com/gb-en/home/press/press-archive/2023/dhl-supply-chain-introduces-uks-first-volvo-heavy-duty-electric-tractor-units.html
3
https://www.apcuk.co.uk/app/uploads/2021/09/https___www.apcuk_.co_.uk_app_uploads_2021_02_Exec-summary-Product-Roadmap-HGV-and-Off-highway-final.pdf
4
https://www.zemo.org.uk/assets/reports/ZEMO_Renewable_Fuels_Guide%20_2021.pdf
5
https://www.dhl.com/gb-en/home/press/press-archive/2022/dhl-introduces-20-bio-lng-trucks-into-m-s-fleet.html
26
OPPORTUNITY 3
Implementing
Net Zero through supply
chains, procurement,
and infrastructure
IMPLEMENTING
THE OPPORTUNITY
KEY STATISTIC
Members recognised the significant potential for larger businesses and
Government to drive implementation of Net Zero through their supply chains,
including leveraging procurement to drive demand of low carbon goods and
IN 2021, THE
services, and collaborating with smaller suppliers and customers, lending tools, PUBLIC SECTOR
resources and expertise to implement solutions.
AWARDED £559M IN
SUMMARY OF MEMBERS’ VIEWS NET ZERO RELATED
Members recognised that for business, implementing Net Zero through operations CONTRACTSxvii
and value chains will mean aligning procurement practices and collaborating with
suppliers. Members highlighted the potential for larger companies to drive demand
- A SMALL
for low-carbon products, and in doing so help reduce their costs, by aligning their PROPORTION OF
procurement practices appropriately. Members also highlighted a number of
examples of larger businesses and smaller suppliers collaborating to implement THE UK’S £290BN
Net Zero solutions within supply chains.
ANNUAL PUBLIC
The main drivers for business action that members identified were: PROCUREMENT
• The strong signals and requirements set by procurement practices (corporate
and public) which drive up standards in supply chains. SPEND.
• The value of working with trusted suppliers to implement effective change
in supply chains, and the importance of trusted purchaser-supplier
relationships.
• Strong policy signals and regulations from Government which help to shift
markets.
• Opportunities to improve the resilience of supply chains.
• Sector conveners who help to broker consensus among competitors on
strengthening actions/standards (WRAP was cited as a good example in the
food sectorxviii).
• Minimising disruption to normal business activity, minimising additional time
or cost burdens, allowing businesses to focus on their primary functions –
particularly for smaller businesses with more limited capacity.
• Competitiveness, the need to respond to shifting markets but noting the fear
of being undercut.
• A stable regulatory space, which provides confidence for businesses to act.

• The lack of strong procurement standards to drive demand for low-carbon
goods and services, e.g. in the food sector.
• Delays and blockages in delivering key infrastructure such as grid connections,
charging infrastructure and planning consents.
• Limited capacity and resources for SMEs to understand the implications of
and respond to Net Zeroxix. 2
The Public Procurement Bill will introduce a new
• The balance of power in supply chains is often with the larger businesses. supplier selection regime, based on principles including
Empathy and support is needed for smaller businesses in the chain, and this non-discrimination, fair treatment, value for money,
maximising public benefit, transparency, and integrity.
needs to be a shared responsibility, rather than a top down demand that While value for money would remain the core objective
creates additional pressure. of procurement, the Bill would require public sector
Commons buyers to take a broad view and take account
• The lack of practical standards and tools to provide consistent information, of the national strategic priorities set out in the National
with which companies can make purchasing and procurement decisions Procurement Policy Statement (NPPS). The NPPS asks
based on carbon performance. public authorities to consider wider public benefits,
such as creating new (local) jobs and tackling climate
• Historically weak requirements to embed Net Zero within public procurement change. Source: House of Commons Research Briefing,
contracts. Members note the opportunity to strengthen this through the Public Procurement Bill, 5 January 2023 https://
researchbriefings.files.parliament.uk/documents/CBP-
forthcoming Public Procurement Act.2 9402/CBP-9402.pdf
28
IMPLEMENTING
On infrastructure, members called for Government to urgently reform the

planning regime to enable more rapid delivery of renewable energy projects,
without allowing major environmental or social damage, noting that the
current consent processes often result in long delays or projects being halted
altogether, as well as dissuading investment, by increasing risk/ uncertainty.
There were calls to rapidly upgrade the electricity grid to account for new
renewable generation; and to provide businesses with relief from the full cost of
grid connectivity and upgrade charges. Infrastructure is also critical to power
the UK’s housing stock. As we electrify our homes, the grid needs to meet this
growing need while rapidly decarbonising at the same time. Planning will play
a role in providing this energy infrastructure, as well as ensuring a smooth
transition to building new zero carbon homes everywhere.
Members highlighted the importance of Government strengthening prioritisation

of Net Zero within public procurement – in order to drive demand for Net Zero-
aligned goods, services and practices. Members noted the important interaction
with the need for robust reporting processes, highlighted under “Integrity”.
There was consensus on the need for provision of expertise/support to SMEs
(as well as finance) to help them adapt to new supply-chain and procurement
requirements, and this could be provided and this could be provided by
expanding the role of expert-sector bodies and impartial advice services.

(B7) All businesses (G7) DESNZ and OFGEM (T3) Prioritise Net Zero within
Implement cost-effective Net Zero Accelerate the delivery of key Net procurement
solutions to their operational sites Zero infrastructure and remove Cabinet Office: Further extend
as soon as possible. key barriers such as delays to the and strengthen requirements on
consenting process for Net Zero climate change in the National
infrastructure or assets. Procurement Policy Statement.
This could include extending

(B8) Larger businesses and smaller (G8) DESNZ coverage of requirements to
businesses Significantly enhance provision consider climate change and Net
Collaborate to enable adoption of support to SMEs to access the Zero contracts with a value below
of Net Zero solutions throughout resources and advice they need to £5m and tying requirements to
supply chains. understand and implement Net Zero the incoming TPT framework.
solutions. Government should also report and
track the carbon performance of
suppliers and contracts.
(B9) All Businesses (G9) DESNZ and DIT
Consider opportunities to transform Implement robust, effective Businesses: Align corporate
or align practices, business models regulation to bring slow-movers procurement practices to Net Zero
and value-chains in support of Net along and create a level playing field goals.
Zero. with our competitors at home and
abroad.
29
IMPLEMENTING
Working with suppliers and customers to implement Net Zero: Lloyds Banking
Group, financial institution
At Lloyds Banking Group, we are driven by our We also work closely with business customers to
purpose to Help Britain Prosper. Supporting, and understand their challenges in driving change through
accelerating, the UK’s transition to a low carbon their own supply chains. We recently held a Supply
future is core to our strategy. Two of the key ways Chain Resilience event bringing together businesses
this manifests are through our own supply chain, of all sizes; to help us to consider and design the best
and those of our customers. support for them. We learned that smaller businesses
need support from their buyers to ensure they can
We’ve set an ambition to reduce the emissions from meet their needs effectively, and want clearly defined
our suppliers by 50% by 2030, and a similar goal to public policies regarding data, measurement and
halve the emissions we finance for customers, over the scoring standards. Whilst larger businesses have greater
same period. We’ve begun by launching our Emerald resources available, they face challenges from the
Standard – drawing on existing globally recognised complexity involved in assessing global supply chains,
assessment approaches to set out clear sustainability and making robust disclosures, as well as uncertainty
expectations for suppliers. To date, we’ve contacted our on how standards will evolve.
top 123 suppliers who contribute approximately 80% of
in-scope emissions and represents over 80% of related We are looking at ways to further support our customers
spend. Of these, 57% have a science-aligned target, 56% to navigate this complexity – be that through new
have committed to Net Zero and 43% appear to disclose sustainability products, investing in thought leadership1
full scope 1,2 and 3 emissions through CDP. or developing data insights.
1
Trade Insights | Supply Chain Resilience | Lloyds Bank Business
30
IMPLEMENTING
Implementing solutions to reduce emissions and improve efficiency: BAE,

defence supplier
Since 2004, working with the Royal Navy, BAE We have been working to improve the way data is used
Systems has reduced estate CO2 emissions at to control and monitor estate operations and inform
Portsmouth Naval Base by more than 40%. This is decision making. We overlaid three-dimensional
despite energy demand almost doubling recently geospatial models of the dockyard with various sources
due to the needs of the aircraft carriers at the base. of estate and asset information to provide powerful
visualisation tools, easy access to information and
This has been achieved with activities such as the analytics dashboards.
installation of approximately 500kW of photo-voltaic
roofing and 13.5MW combined heat and power Commercial off-the-shelf sensors have been integrated
generation, alongside a number of targeted energy to tag and monitor on-site assets like cranes, buses
reduction projects and initiatives. and pumps. This data provides a single point of truth
from which we can track electrical performance,
The reductions in energy usage at Portsmouth Naval maintenance requirements and power usage across a
Base are seen as good practice across both our own site and so allows us to better locate charging stations
company and with our customers, as we have hosted and optimise operations for maximum efficiency.
several groups of UK Ministry of Defence visitors,
including from outside the Royal Navy, to share our It goes without saying that we need to go on this
experiences. Public procurement is a powerful lever journey with our supply chain partners. Our supply
for the Government to drive implementation of Net chain generates approximately five times more
Zero through supply chains. PPN (Public Procurement emissions than our own operations each year and we
Note) 06/22 sets requirements for BAE and our are just one part of an ecosystem and so engaging
suppliers to have published carbon reduction plans and them and joining up on objectives and initiatives is
Government awards a minimum of 10% scoring criteria critical to success. Government can enable this sort of
to ‘social value act’, which includes climate change – collaboration through common reporting frameworks
however there is scope for Net Zero to be much more with emphasis on materiality to avoid duplication and
integrated within public procurement practises. apply focus effort on key areas.
31
IMPLEMENTING
Transforming business purpose and supply chains: Low-carbon Energy

company, solar power SME
The low carbon energy company is a provider of to develop our own talent and our team of 13 people
commercial solar pv for self-consumption, and consists of 4 graduates who we have taken without
installer of battery technology and EV solutions B2B work experience and have developed into designers
across the UK and Republic of Ireland. and project managers with the skills and knowledge to
help us grow.
Around four years ago we reviewed our business and
really tried to understand our role in the future and how In addition to that we have committed to working with
we can influence decision makers. Given limited support a brilliant local charity called positive footprints who go
available from the Government, we decided to take the into deprived and underperforming local schools and
initiative. At that time, we had a team of five people so offer classes to promote STEM learning opportunities to
the ability to effect change at any scale was limited. those children who might not recognise, or have family
support, to see that there is future in technology and
Over a six-month period the review brought us our learning. As part of that support our graduates attend
purpose. “To inspire change today to protect future one the schools on the programme to talk about their
generations”. Understanding this made it a much work, what it means and what opportunities it brings.
clearer message for our customers and allowed them
to get on board with the message that it wasn’t a purely We appreciate we aren’t a typical SME in a supply chain
commercial decision. We understood that it wasn’t because our business is that of sustainability, but we
our role to just to sell solar pv systems. We recognised also believe that larger organisations have a duty to
what our clients had been telling us for several years. assist their supply chain in making that change. In the
The reason they chose us was that we helped educate absence of government intervention, we believe that
them in what the journey to sustainability meant and larger companies would be able to deliver change
we assisted them in understanding that measuring, quicker if they engaged properly with their supply chain
recording, planning and actioning in all areas of energy and offered the necessary support for those companies
consumption and savings was the way forward, and to do what we have done.
by taking that approach, a whole raft of benefits
would follow, including financial, environmental, and We have found the most successful outcomes occur
generally assisting in ESG compliance. when our customer genuinely wants to partner with a
supplier to reduce emissions and costs, without coming
We monitor all our systems and offer our clients annual at the expense of values and quality. Better engagement
reports on carbon and energy saving through the in understanding the skill set that supplier has that can
lifetime of the installation. We took it upon ourselves enhance the business overall is a win-win.
32
OPPORTUNITY 4
Innovative
industries and workers
INNOVATIVE
THE OPPORTUNITY
KEY STATISTIC
Members highlighted the opportunity for dynamic businesses and skilled
workers to build innovative low carbon industries in Britain, and in doing so reap
the dividends from the growing global Net Zero economy whilst enabling the UK
THE GLOBAL
to be a world leader in key Net Zero technologies. MARKET
SUMMARY OF MEMBERS’ VIEWS OPPORTUNITY FOR
Members recognised the significant potential from UK businesses and workers UK COMPANIES
to help design, develop and scale some of the biggest Net Zero challenges. They
also highlighted the benefits of developing ‘made in Britain’ Net Zero solutions PRODUCING
in areas of strategic priority, including economic opportunities, new jobs and
supply chain resilience. Members noted that larger businesses are well placed
THE GOODS AND
to trial nascent technologies (such as hydrogen HGVs and battery storage for SERVICES TO FEED
homes), and emphasised that all businesses should strategically consider their
changing skills requirements implicated by Net Zero. THE NET ZERO
The main drivers for business action that members identified were:
REVOLUTION COULD
• The prospect of seizing commercial opportunities from emerging Net Zero BE WORTH MORE
technologies, services, and markets.
• The desire to support home-grown industries, create jobs and develop skilled THAN £1 TRILLION
people – in the UK.
• The need to keep-pace with global competitors such as US. EU and China in
BY 2030.xx
the race to Net Zero and the green industrial opportunities this presents.
• The critical role of workers in underpinning business success, and the need to
support them in prospering through the transition.

• A lack of funding certainty across the full cycle of innovation, with a gap
between the end of some EU funds and UK replacements, and provision of
short-term grants, often at short notice, and with complicated terms that
companies may view as too onerous to apply.
• Mid-innovation funding such as that provided by Innovate UK is
predominantly available via competition which is time consuming and
undermines confidence.
• Limited access to low-risk lending instruments to scale innovations to
commercialisation.
• International supply of vital components is at risk of delay and disruption
which could slow the transition to Net Zero.
• New technologies are often more expensive than incumbents, so struggle to
break into the marketplace.
• Innovation programmes are not sufficiently output focused – e.g. delivering
jobs and bringing new products to market.
• Business support is time limited - traditional ‘bite size’ of 12 hours support
under previous European Structural Fund is minimal compared to the needs
of customers.
• There are far too few demonstrator facilities across the UK – customers want
to see a working full-scale demonstration of the product in an industrial
setting before they buy.
• It is challenging for businesses to apply for funding repeatedly through every
stage of a product’s development and there is no supporting agency to
support businesses along the way.
• The Net Zero skills gap, which is a critical risk to delivery and innovation.
Particular issues highlighted were challenges recruiting the skilled workers
needed, the lack of flexibility to pass on unspent apprenticeship levy, the
challenge around recognising interoperability of skills between sectors and
the lack of a coherent plan.
34
INNOVATIVE
Members highlighted the need for Government to provide more reliable funding
throughout the innovation process – from R&D and pilot stages through
to scaling and, crucially, commercialisation, with the provision of low-risk
innovation loans and the replacement of EU funding suggested as options. Mid
stage innovation/scaling funding currently delivered through the competition
orientated Innovate UK process, would be more progressive and positive for
businesses if the business became eligible for support once the innovation was
assessed as exceeding a technology market viability assessment.
Members felt there is a need for greater clarity from Government as to the
strategic innovation priorities for the UK, and that there are regulatory changes
that could support innovation, e.g., onshore wind consents, grid connectivity,
and planning reform. On skills and workers members called for greater flexibility
around the use of the apprenticeship levy, the importance of enabling easier
transition of skilled workers from one sector to another and the need for a
strategic plan to meet the UK’s Net Zero skills needs.

(B10) All businesses (G10) DESNZ and DSIT (T4) Take a strategic approach to
Direct their ingenuity and resources Review the provision of funding and national innovation priorities
into solving key Net Zero challenges, finance for Net Zero R&D, early and DESNZ and DSIT: Clarify a set
with larger companies piloting mid-stage innovation and late-stage of strategic national Net Zero
emerging technologies. commercialisation. innovation priorities where the
UK has a competitive advantage,
and provide enhanced innovation
funding, finance and supportive
regulation (such as production
Actively consider future skills Conduct a review of skills gaps
mandates) to bring these forward
requirements in their sector and across key sectors; assessing and
at pace.
work with Government to inform improving the impact of Net Zero
and fund appropriate training and training provision, and developing
This should link closely to
qualifications. closer links between employers and
Technology Readiness Levels,
education and training providers
help reduce uncertainty, remove
e.g. via an enhanced Apprenticeship
potential disadvantage for early
Levy, or alternative incentives.
adapters, and so drive investment.
The planned Green Taxonomy is an
An immediate change Government
opportunity to highlight Net Zero
could make is to raise the annual
innovation investment priorities.
transfer cap in the Apprenticeship
Levy to enable larger businesses to
spend an increased share of their
levy funds, including on regulated
training and apprenticeships across
Net Zero trades and technologies.
35
IMPLEMENTING
INNOVATIVE
Supporting local Net Zero innovation: RedCat, innovation initiative in East

Lancashire
The UK is a wonderful place for innovation with In two years, we’ve successfully turned £2.2 million
quality Higher Education Institutions supporting of Government capital grant and funded consultancy
new low carbon product inventions through research support into £4Million+ of sales & inward investment/
and development. However full commercialisation VC and equity funding, nine new products being
of those innovative products, creation of manufactured, 240 jobs safeguarded, and 36 new jobs
manufacturing plants & jobs, and exporting of the created. And in 5 years we are estimated to deliver
finished goods - to solve our global climate problems in excess of, £32Million of economic benefit, 250
- is severely constrained. safeguarded jobs and 200 new jobs created and 29+
new products being produced.
RedCAT is an initiative developed and led by East
Lancashire Chamber of Commerce. Conceived in In terms of what is needed for the UK to seize the
December 2019, partnerships have been built with innovation opportunity of Net Zero, it centres on
regional and national bodies (Advanced Manufacturing enhancing the funding landscape, namely: continuing
and Research Centre (AMRC) NW, Electricity NW, the to fund early innovations, post European funding
Environment Agency) with local politicians, local cessation, moving mid stage innovation funding to
government and innovation leaders in the low carbon a non-competition basis and instead focusing on
field, to conceive and create a long-term independent supporting technologies to develop to exceed a ‘market
initiative – to provide a pathway of technical business viability’ threshold, to then qualify for support. Funding
consultancy, financial and R & D support to accelerate the at later stage of technology development, i.e. TRL
commercialisation of low carbon technologies. Our role is: (transition readiness level) 7-10 should be focused on
real delivery of commercialisation, manufacturing and
• Building end to end commercialisation funding and
export achieved, jobs created.
expert support for low carbon technologies
• Identifying the viability of technologies, market, early
In addition, business support needs to be open
adopter funders, potential buyers, venture capital (VC)
ended, multi-agency and free of charge, focusing
and equity investors and global roll out opportunities
on long term relationship building with funding
• Combining capital support from public, private and
agencies to encourage ongoing funding support over
VC/Equity sources to enable the initial R&D costs of
the evolving life of the innovation and its scale up,
prototype development, demonstration, first sale
to secure maximum economic output for the UK.
product and scale up costs to be supported
Where innovation funding is provided focus should
• Provide access to RedCAT in house clinics with the
be on securing long term economic benefit for UK by
British Business Bank & embedded Innovate Edge
supporting through to manufacture, sales and export
team, and the RedCAT United Nations Innovation
- and delivery of low carbon technological solutions to
Challenges Platform, to help businesses and
the global market where they are required.
innovators know how to access the support and
resources available to them.
• To accelerate the manufacture, adoption and export
of low carbon tech to drive local economic green
recovery and resilience and support the global
response to climate change
36
IMPLEMENTING
INNOVATIVE
Scaling Sustainable Aviation Fuel from waste: Velocys, sustainable fuels

company
Velocys is a sustainable fuels technology company, It is vital to establish commercial SAF production
originally a spin-out from Oxford University, and now quickly so that the industry can then ramp up to meet
employing over 40 people in the UK and the USA. the demand. The aviation and renewable fuel industries
and the Government have worked closely together,
The company’s focus is on Sustainable Aviation Fuel through the Jet Zero Council, towards ambitious
(SAF). SAF is critical for reducing the GHG emissions targets, including 10% SAF in jet fuel by 2030 and five
from aviation; it can be used in today’s aircraft without commercial UK plants in construction by 2025. The UK
changes to the fleet, and 70% of aviation emissions is in the enviable position of having several SAF projects
come from long-haul flights where other power solutions at an advanced stage of development, of which Altalto
(hydrogen or battery electric) lack the necessary energy is one. However, obtaining finance is a critical barrier to
density. SAF can be made from a wide range of carbon this industry in the UK.
sources, including municipal solid waste and forestry
waste; it can also be made from carbon dioxide using SAF projects are capital-intensive, and are challenging
renewable electricity and hydrogen. Velocys’ modular to finance for two main reasons: first-of-a-kind plants
technology for synthesis of hydrocarbons is key to several carry residual technical and project execution risk, but
of these pathways. Fuel made in this way is qualified for even more importantly, the regulations are not yet in
use in all commercial aircraft at up to 50% in a blend with place that would create a SAF market with sufficient
traditional fossil jet fuel. certainty of revenue to support a project finance
investment case. The Government is proposing to
Velocys is leading the development of the Altalto waste- introduce a mandate for SAF and a system of tradeable
to-SAF project in Immingham, North East Lincolnshire. certificates to incentivise SAF use, but a price stability
The proposed plant will take hundreds of thousands of mechanism such as that used in the electricity and
tonnes per year of residual waste, otherwise destined hydrogen markets is also necessary in order for projects
for landfill or incineration, and use it to make SAF, to access debt and thus to get financed and built.
while also sequestering carbon dioxide. The plant will
save over 300,000 tonnes of carbon dioxide emissions General lessons from this case study:
per year, bring jobs, improve the UK’s energy security, • Focus on the solutions that can deliver GHG savings
reduce imports and establish the UK as a leader in at scale and speed;
this new industry with a global technology export • Cross-sector collaboration is vital;
opportunity. • Capital project finance can only be obtained with
sufficient revenue certainty, which in regulated
markets, only Government can provide.
Concept image of SAF production facility. Image: Velocys
37
IMPLEMENTING
INNOVATIVE
Innovating the home of the future: Barratt Developments, housing developer
As the UK’s leading national sustainable housebuilder, energy systems linking solar panels, batteries and
we have a responsibility to build sustainably and electric vehicle plus a nature-friendly garden. The aim
support the industry as we move towards net zero is to find the best solutions to help customers’ live
homes, at scale. sustainable lives.
We are well-placed to do this, with highly experienced eHome2, built at The University of Salford, goes even
teams engaging with partners and suppliers towards further. We have refined our approach and added smart
shared sustainability goals. Innovation will be crucial, as systems to integrate the technology and provide a
we transition to future-ready, zero carbon homes, sharing better customer experience. The home, developed with
data and knowledge as we drive sector-wide change. Saint-Gobain, also uses low carbon materials to limit
the use of resources in construction. Built inside the
A track record of innovation Energy House 2.0 environmental chamber, eHome2 is
Investing in innovation, research and development being road-tested in the climate of the future.
supports our transition, helps our supply chain and
boosts the development of low carbon technologies. Ambitious targets, clear plans
Our track record of innovation is preparing us for the As well as innovation, a range of important ingredients
Future Homes Standard and for net zero homes by 2030. are required to achieve a smooth, effective and just
We built the first eco home from a major housebuilder, transition to net zero.This includes setting a long-term
the Green House, and Hanham Hall, the UK’s first net vision, a clear plan and consistent measurements.
zero carbon community. We were the first major housebuilder to set science-
based carbon reduction targets and are committed to
At the Zed House, we worked with 40 organisations becoming a Net Zero business by 2040. Our Building
to test a range of technologies and enable change Sustainably Framework brings together all of our
throughout the supply chain. The home, which took a ambitions, activities and metrics to ensure that
fabric-first approach, features a variety of low-carbon sustainability is deeply rooted in every decision and
heating solutions, water-efficient technologies, smart action we take.
The Zed House, Barratt’s zero carbon concept home showcasing sustainable living. Credit Barratt Developments
38
IMPLEMENTING
INNOVATIVE
With Executive Committee representation and a This has been transformative for our business and
Board-level Sustainability Committee, sustainability across the value chain.
is embedded at the heart of our business. Our
Building Sustainably Framework, targets, actions and Making change happen, everywhere
performance are publicly available – a sector-leading The whole industry needs to move towards net zero
approach recognised by a Crystal award for transparency together. That’s why we’re providing leadership and
in sustainability disclosures from Next Generation. We expertise to the Future Homes Hub, a joint industry and
know we need to invest time and resources to become government initiative, creating a shared sector roadmap
a sustainable business – investing in our people, and supporting SMEs to develop transition plans.
developing new skills and supporting frontline teams
via our experienced in-house Sustainability team. As a FTSE 100 business and sector leader, we can
advocate for positive change. Through initiatives like
But it is not all about tomorrow, all of our homes are the Energy Efficiency Taskforce and Net Zero Council,
highly energy efficient and we are trialling and rolling we provide insight to government to help inform a
out new technology across our homes today. For long-term plan, underpinned with certainty around
example, in Somerset, every home at our Delamare Park targets and measuring progress. The planning system
development is fitted with an Air Source Heat Pump. has a critical role too, with consistent carbon standards
We’re driving down carbon emissions and waste, driving a smooth net zero transition everywhere.
moving to renewable energy and replacing diesel with
hydrotreated vegetable oil (HVO). We work closely with We also work with lenders to ensure green is cheaper.
partners and the Supply Chain Sustainability School to Building energy efficiency into mortgage affordability,
help suppliers tackle their emissions too. unlocking better rates, would reward customers making
a sustainable choice. Industry is ready to deliver. Clarity
Through a unique Supply Chain Sustainability Matrix, for business, confidence for customers and impactful
co-created with our partners, we align our procurement green finance can unlock the market for low carbon
activity with our sustainability policy and ambitions. homes – attracting investment, innovation and talent.
The Energy House 2.0 environmental chamber, testing Barratt’s eHome2 in future climate conditions. Credit Barratt Developments
39
OPPORTUNITY 5
Influence
of business on society
INFLUENCE
THE OPPORTUNITY
KEY STATISTIC
Members recognised the significant potential for businesses to channel their
reach across society to inform, encourage and enable public action on Net Zero
and in turn help to grow emerging markets for low carbon products and services.
88% OF PEOPLE
IN THE UK
WOULD LIKE
Members agreed that the business community has an important contribution
to make to public understanding and support of the climate change agenda, TO MAKE MORE
including informing and enabling consumers about purchasing decisions, and
aligning businesses models and practices to encourage supportive behaviour
SUSTAINABLE
change. In particular the group highlighted the critical role of communications CHOICES, BUT THE
and creative sectors in advising on the most effective forms of Net Zero
communication. SAME PROPORTION
The main drivers for business action that members identified were:
FEEL IT’S TOO
• Increasing expectations and demand from consumers for businesses to act/ HARD TO MAKE
lead on societal issues such as climate change.
• The opportunity for businesses to support and enable consumers to engage in SUSTAINABLE
Net Zero.
• The need to rapidly accelerate uptake of Net Zero solutions across society.
CHOICES BECAUSE
• The importance to businesses of retaining and strengthening their social OF HIGH COSTS,
license.
• The opportunity for business to play a supporting role in shaping and growing INCONVENIENCE,
emerging low-carbon markets.
LIMITED
• Misleading claims from a small number of businesses which undermine
KNOWLEDGE OR
consumer and public trustxxii. OTHER BARRIERS.xxi
• Lack of business, consumer and public understanding or awareness of
what Net Zero means for them, combined with barriers and a lack of policy
preventing them from doing the right thingxxiii. The shift in the agriculture
sector was highlighted as an area especially in need of clearer policy direction,
engagement, and incentives to drive the necessary behavioural changes up
and down stream.
• A lack of data / information to inform customers / consumers regarding
procurement and purchasing decisionsxxiv, for example air source heat pumps.
• Other practical barriers to consumers being able to do the right thing, such as
prohibitive costs, inconvenience or a lack of adequate facilities or services.
Members called on Government to work with the media and communication

sector to develop a long-term public engagement strategy to inform the public
about Net Zero and what it means for them. Members welcomed efforts by
regulators to clamp down on greenwashing, but stressed the need to consider
the limitations in being able to always provide perfect information. Members
highlighted the need for a compelling consumer offer on Net Zero, focused on
incentivising and empowering consumers to do the right thing – making low-
carbon choices more affordable and convenient.
41
INFLUENCE

(B12) All businesses (G12) DESNZ and DCMS (T5)

Channel consumer influence in Coordinate a long-term public Government and business work
support of Net Zero societal changes engagement strategy for Net Zero together to create compelling
and technologies – helping to in partnership with media and consumer offer on Net Zero,
educate, encourage and enable the communications sector. incentivising and empowering
public. the public to adopt lower carbon
lifestyles and products.
The media industry’s role in socialising Net Zero: Planet Placement, media and
communications initiative
Planet Placement is an online resource from The We’ve already seen how powerful TV and film can be in
British Academy of Film and Television Arts (BAFTA) embedding positive behaviours. In the 80s and 90s, the
albert team in partnership with change-agency term ‘designated driver’ was deliberately introduced
Futerra. This guide has been developed to enable into hundreds of primetime TV shows, helping to
the UK’s film and TV industry to help raise public normalise the behaviour and measurably reduce drunk
awareness about climate change, by introducing driving fatalities.
sustainability messages into the content we see on
our screens. Today, producers, directors, scriptwriters and creatives
from across the film and television world can use Planet
The screen industries have a crucial role to play in Placement to raise the issues and show the actions
solving climate change. Reducing the footprint of needed to combat climate change.
productions is important. But, by far, the greatest
opportunity to make an impact is through the content Following the launch of Planet Placement, at COP27
they put on screen. Collectively, this industry reaches in Glasgow the industry pledged greater efforts for
millions of people every single day. That represents an climate coverage. Signatories included 12 of the UK and
unprecedented opportunity to shift mindsets and make Ireland’s largest media brands: the BBC, BBC Studios,
positive environmental behaviours mainstream. BritBox International, Channel 4, Channel 5/ Paramount
UK, Warner Bros. Discovery UK & Ireland (previously
Discovery UK & Ireland), ITV, RTE, S4C, Sky, STV, and UKTV.
42
IMPLEMENTING
REFERENCES
i. Climate Challenge Committee

ii. https://www.theccc.org.uk/about/ NAO, 2022, Briefing for Environment, Food and Rural Affairs Committee, https://www.
nao.org.uk/wp-content/uploads/2022/02/Briefing-for-the-Environment-Food-and-Rural-Affairs-Committee-Climate-change-
adaptation.pdf
iii. BEIS, 2021, Net Zero Strategy, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_
data/file/1033990/net-zero-strategy-beis.pdf
iv. IRENA, 2023, Country Rankings dashboard, accessed March 2023, https://www.irena.org/Data/View-data-by-topic/Capacity-
and-Generation/Country-Rankings
v. Chris Skidmore, 2023, Mission Zero – Independent Review of Net Zero, https://assets.publishing.service.gov.uk/government/
uploads/system/uploads/attachment_data/file/1128689/mission-zero-independent-review.pdf
vi. NAO, 2022, Briefing for Environment, Food and Rural Affairs Committee, https://www.nao.org.uk/wp-content/
uploads/2022/02/Briefing-for-the-Environment-Food-and-Rural-Affairs-Committee-Climate-change-adaptation.pdf
vii. McKinsey, 2021, Opportunities for UK businesses in the net-zero transition, accessed March 2023. https://www.mckinsey.com/
capabilities/sustainability/our-insights/opportunities-for-uk-businesses-in-the-net-zero-transition
viii. CCC, 2020, Sixth Carbon Budget Advice Report, https://www.theccc.org.uk/publication/sixth-carbon-budget/
ix. EY, 2023, Analysis of FTSE100 Transition Plan, accessed April 2023, https://www.ey.com/en_uk/news/2023/04/only-five-
percentage-of-ftse-100-have-published-net-zero-plans
x. Lloyds Bank, 2023, SME Net Zero Monitor, https://www.lloydsbank.com/business/resource-centre/insight/net-zero-monitor.html
xi. European Comission, 2023, Green Deal Industrial Plan, https://ec.europa.eu/commission/presscorner/detail/en/ip_23_510
xii. Scientific America, 2023, article on renewable energy investment, accessed March 2023. https://www.scientificamerican.com/
article/china-invests-546-billion-in-clean-energy-far-surpassing-the-u-s/#:~:text=The%20country%20spent%20%24546%20
billion,billion%20in%20clean%20energy%20investments
xiii. SBTI, 2018, webpage on benefits of setting science based targets, accessed March 2023, https://sciencebasedtargets.org/
blog/six-business-benefits-of-setting-science-based-targets
xiv. CCC, 2022, Report on Voluntary Carbon Markets and Offsetting, https://www.theccc.org.uk/publication/voluntary-carbon-
markets-and-offsetting/
xv. CCC, 2022, Report on Voluntary Carbon Markets and Offsetting, https://www.theccc.org.uk/publication/voluntary-carbon-
markets-and-offsetting/
xvi. CCC, 2020, Sixth Carbon Budget Advice Report, https://www.theccc.org.uk/publication/sixth-carbon-budget/
xvii. Tussell, 2020, article on analysis of UK public sector procurement and Net Zero, accessed March 2023, https://www.tussell.
com/insights/uk-public-sector-net-zero-contracts-spending-analysis#Download
xviii. WRAP is a charity working with businesses, individuals and communities to help reduce waste www.wrap.org.uk
xix. SME Climate Hub, 2022, Article on barriers to small business action, https://smeclimatehub.org/new-survey-reveals-small-
business-barriers-climate-action/
xx. McKinsey, 2021, Opportunities for UK businesses in the net-zero transition, accessed March 2023. https://www.mckinsey.com/
capabilities/sustainability/our-insights/opportunities-for-uk-businesses-in-the-net-zero-transition
xxi. Behavioural Insights Team, 2023, How to Build a Net Zero Society Report, https://www.bi.team/wp-content/uploads/2023/01/
How-to-build-a-Net-Zero-society_Jan-2023.pdf
xxii. Edelmen, 2022, Special Report on Trust and Climate Change, https://www.edelman.com/sites/g/files/aatuss191/
files/2022-11/2022%20Edelman%20Trust%20Barometer%20Special%20Report%20Trust%20and%20Climate%20
Change%20FINAL_0.pdf
xxiii. Deloitte, 2022, Article on sustainable consumer behaviour, https://www2.deloitte.com/uk/en/pages/consumer-business/
articles/sustainable-consumer.html
xxiv. World Economic Forum, 2021, Report on the Net Zero Supply Chain Opportunity, https://www3.weforum.org/docs/WEF_Net_
Zero_Challenge_The_Supply_Chain_Opportunity_2021.pdf
43

The Power of Partnership Unlocking Business Action On Net Zero Expert Advisory Group

Uploaded by

Copyright:

Available Formats

The Power of Partnership Unlocking Business Action On Net Zero Expert Advisory Group

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Power of Partnership Unlocking Business Action On Net Zero Expert Advisory Group

Uploaded by

Copyright:

Available Formats

The Power of Partnership

Unlocking business action on Net Zero

A report prepared by the Advisory

Chaired by Shevaun Haviland

This paper summarises the insights developed from the

Advisory Business Group Chair

AGB Secretariat and Report Production

Introduction: The Five I’s to unlock business action on Net Zero 11

Cross Cutting Recommendation

ACHIEVING NET ZERO REQUIRES CHANGE IN PARTNERSHIP AND TRANSFORMATIVE ACTIONS

Summary of the Five I’s (Integrity, Investment,

CROSS CUTTING RECOMMENDATION: ESTABLISH GOVERNMENT-BUSINESS NET-ZERO PARTNERSHIPS

(B2) All businesses: (G2) DESNZ

(B3) All businesses (G3) DESNZ

(B4) All businesses (G4) DESNZ

(B8) Larger businesses and smaller (G8) DESNZ

(B12) All Businesses (G12) DESNZ and DIT

Figure 2. The Five “I”s for business action

Throughout our discussions, members consistently reflected on the urgency

CROSS CUTTING RECOMMENDATION: ESTABLISH BUSINESS-GOVERNMENT NET-ZERO PARTNERSHIPS

Photo: Nicholas Doherty

INTERNATIONAL CASE STUDY

Business and Government working together to deliver Net Zero priorities:

For more information, visit

The key barriers to business action that members identified were:

Members recognised the central role for Government in setting consistent

ACTIONS FOR BUSINESS AND GOVERNMENT

(B2) All businesses: (G2) DESNZ

(B3) All businesses (G3) DESNZ

(B4) All businesses (G4) DESNZ

CASE STUDIES FROM MEMBERS

A journey to carbon neutral certification: Ethical Dairy, dairy farm

CASE STUDIES FROM MEMBERS

Integrating a response to Net Zero: John Lewis Partnership, retail business

A zero-emisson delivery van. Photo: John Lewis Partnership

The key barriers members identified were:

Members also highlighted the potential for Government to unlock greater

Photo: Gary Ellis

ACTIONS FOR BUSINESS AND GOVERNMENT

(B6) All businesses (G6) DESNZ and HMT

On strengthening incentives; for example

On providing greater access to finance;

CASE STUDIES FROM MEMBERS

Scaling up green finance: L&G, financial institution

CASE STUDIES FROM MEMBERS

Decarbonising Logistics: DHL, logistics company

Bio-methane, both in its Liquified Natural Gas (LNG) and

The key barriers members identified were:

On infrastructure, members called for Government to urgently reform the

Members highlighted the importance of Government strengthening prioritisation

ACTIONS FOR BUSINESS AND GOVERNMENT

This could include extending

CASE STUDIES FROM MEMBERS

CASE STUDIES FROM MEMBERS

Implementing solutions to reduce emissions and improve efficiency: BAE,

CASE STUDIES FROM MEMBERS

Transforming business purpose and supply chains: Low-carbon Energy

The key barriers members identified were:

ACTIONS FOR BUSINESS AND GOVERNMENT