Confidence amongst UK businesses that the country can meet its net zero targets has fallen, despite improved clarity around the policy direction, with a new poll conducted by BSI showing that a majority (71%) of business-leaders say that the government cannot grow the economy while simultaneously trying to reach net zero.
Half (50%) of respondents also said they felt the government’s target to reach net zero by 2050 is unrealistic.
Now in its fifth year the BSI Net Zero Barometer, featuring expert analysis and a survey of 1,000 senior business leaders, shows that while a majority (64%) of businesses remain committed to the UK’s legally binding 2050 net zero target, this has dropped from 83% who said the same in 2024.
Furthermore, the proportion of those “very committed” to the target has fallen to 25% from 31%. Overall, the proportion saying they felt they would likely achieve net zero by 2050 has fallen from 76% to 55%.
While, this year, business leaders reported less uncertainty over the government’s clean energy transition policy, down from 42% to 32%, businesses are adjusting their transition strategies. More than half (54%) expect to revise their sustainability strategies in the year ahead, while nearly half (49%) anticipate revising their net zero targets.
This shift in confidence is mirrored in attitudes towards the broader business environment, while 61% of firms are optimistic about the success of their firm over the next 12 months, this fell from 76% in 2024. Furthermore, only 19% are “very optimistic,” compared to nearly a quarter (24%) in the previous year.
Appetite for support in transitioning to net zero was also found to be high. A substantial majority of UK businesses (83%) expressed interest in at least one type of help, most often in the form of practical tools such as implementation guides, standards selection advice, and case studies. Meanwhile, 82% said that they felt there should be greater government support for businesses trying to reach net zero.
Scott Steedman, Director-General, Standards, BSI, said: “Our latest Net Zero Barometer business survey shows a hiatus in corporate activity, probably linked to changes in government policy in the UK after the election and international backpedalling, but if the new government can demonstrate renewed political commitment towards a future clean energy landscape, there may be an opportunity for government and industry to reset their collective net zero ambitions and build momentum again.
“The most important finding from the survey is that despite the slowdown, we found that 83% of UK businesses said that they were interested in support on how to make progress with net zero.
“Best practice industry standards are easy to adopt advice and, as the report explores, they are an essential tool for corporates trying to pick up the pace towards the delivery of their climate change goals. The 2025 BSI Net Zero Barometer shows that if we want to reinvigorate business on the net zero journey, our best chance is for government and industry to work together to agree next steps, including standards and accreditation as part of the solution, if we are to meet our national net zero ambitions.”
Sebastiaan Van Dort, Director of Sustainability and Energy, BSI said: “Despite growing clarity on policy direction, this year’s Barometer reveals that UK business confidence in achieving net zero is weakening. While commitment remains strong in principle, the reality is that economic pressures and shifting priorities are slowing progress across the board.
“What is promising to see here is not a loss of belief in the need for climate action, but a call for more practical support. With over half of businesses expecting to revise their strategies or targets, it’s clear that many are adjusting their approach to balance ambition with what is feasible.
“This presents an opportunity as the appetite for guidance and clear frameworks remains. Now is the time for industry, government and standards to work together to provide the tools and certainty needed to help every business move forward with confidence and clarity on the path to net zero.”
The data highlights a growing divide between smaller and larger businesses. Large firms remain significantly more optimistic (89%) than SMEs (61%), with micro businesses recording the sharpest decline, down by 17% from last year to 59%. This Is also mirrored as 93% of large firms express an overall commitment to net zero, whereas only 64% of SMEs say the same. The divergence is particularly notable when comparing goal setting. While 36% of all UK firms report having a target in place (down from 60% in 2024) 82% of large firms state this compared to 36% among SMEs.
Further key findings from this year’s report include:
- The number of organizations saying they are driven to take action decreased by 17% from last year to 72%.
- When stating the key drivers to take action, 40% say customer demand, followed by policy and regulatory changes (29%) and mitigating climate related risk (27%). This shifts from last year where mitigating climate related risk lead the drivers (43%).
- The cost of action is the most common challenge, in line with last year’s figures, this was cited by 86% of businesses.
- The cost of action was higher among SMEs (53%) compared to larger firms (32%).
- Larger firms reported a higher level of broader challenges, including issues related to supply chain complexity (53%) and lack of available financing to invest in green tech (45%) compared to 30% and 32% respectively.
Broader economic pressures also continue to pose barriers to businesses looking to transition to net zero, with three in five (80%) stating wider factors are limiting their ability to act. This year’s poll found a slight increase in those citing the cost-of-living and energy crises as barriers, with two in three (66%) saying it prevents them from being able to take action (up from 57% last year).
To download the full BSI Net Zero Barometer 2025, visit the website
