What are the biggest barriers to business's net zero transitions?

What are the biggest barriers to business’s net zero transitions? | Insurance Business Australia

Environmental

What are the biggest barriers to business’s net zero transitions?

Zurich report outlines challenges

Environmental

By
Roxanne Libatique

Zurich Insurance Group (Zurich) and global insights agency Horizon Group have released a new report detailing how businesses are managing their net-zero transition.

The report explores areas where businesses can accelerate their climate transition. The results are based on the Sustainability Executives Survey of 668 executives who have sustainability-related responsibilities within the company.

lack of feasible technological solutions;
regulatory challenges; and
difficulties in measuring and monitoring impact.

Australia

In Australia, 73% of companies confirmed that they have a net-zero plan in place, and 27% said the plan is already in progress. Among stakeholders, 23% of investors advocate most strongly for net-zero action, followed by management (20%), shareholders (20%), and regulators (20%).

The report further revealed that Australian companies reduce emissions by focusing on reducing emissions through supply chain (23%), increasing energy efficiency of buildings (20%), purchasing carbon offsets or credits (13%), choosing alternatives for fuels and raw materials (13%), and promoting consumer or customer behaviour change (13%).

When asked about the main challenges in developing a net-zero transition plan, 53% of the respondents chose costs and scale of capital expenditure needed, 50% cited regulatory challenges, and 43% difficulty measuring or monitoring the impacts.

Matt Holmes, group head of political and government affairs at Zurich, called on policymakers to support businesses’ climate transition by making systematic, economy-wide interventions.

“The discussion so far suggests three priorities for action for governments: creating policy certainty, facilitating investment in mitigation and adaptation, and turbo charging innovation,” Holmes said.