Let’s be frank: the siren song of reducing climate commitments tempts the corporate class and it stinks.
If 2025 is indeed the year that business began to quietly retreat to zero, watering down promises or breaking them, then 2026 should be the year that UK companies regain their core and purpose. After all, some are not just distractions; it is self-indulgent.
A recent Guardian investigation suggests that, from retailers to banks, carmakers to councils, promises once heard from the roofs of the media are being softened or removed. Neutral economic rhetoric now reads, more often than not, like the remnants of a good corporate signing rather than a serious business strategy.
Yet here’s the part that no administration memo seems to say clearly enough: net zero is not a fad. The defining economic revolution of our era, as seismic as electrification or the Internet. Treat it like a box-ticking job and you’ll wake up in a world where the markets and fame have passed you by.
Let’s unpack the fearmonging for a moment. There is a narrative circulating among financial conservatives that climate action is a cost rather than an investment. That delivering on the net-zero target undermines near-term profitability. That shareholders want dividends, not decarbonisation. Then there is the complaining about regulation: “not now, not yet, don’t you see we have debts to pay?”
Balderdash. Yes, there are real short-term costs to decarbonisation. But those are far outweighed by the long-term economic opportunities. Research by trusted organizations such as the British Chambers of Commerce and McKinsey shows that the net-zero transition could be worth over £1 trillion to UK business by 2030, through innovation, exports and start-up profits. That’s not greenwash: statistics.
Indeed, if British business becomes a slacker instead of a leader, it will not just lose morale, it will lose market share. Markets today are global, and consumers are increasingly demanding sustainability from their suppliers. Investors do the same. Lenders, insurers and large pension funds are incorporating climate risk into the pricing and allocation of capital in a way that will grow exponentially. Waking up now is risking not being invested in the near future.
Some may argue that regulatory uncertainty, particularly post-Brexit policy changes or political shifts, makes strict net-zero commitments risky. And yes, the political climate has been changing. But this is why business leadership is important. When politicians waver, when policy is debated, a company’s determination can serve as a stable anchor for long-term strategy. Go back and someone else will fill the void – and it won’t be challengers with strength at their core.
Let’s touch on those sectors where tracking back has become more prominent in 2025. Finance, for example, saw the disruption of its climate cooperation structures by moving away from zero-sum banking unions. Banks such as HSBC have delayed parts of their climate targets, drawing heavy criticism.
The logical leap here, that ties can be reversed when the going gets tough, is exactly where the naysayers win. But think of the message it sends if UK banks, the very institutions that promote corporate growth, say they will only play football when profits are guaranteed. It quickly undermines trust in the entire process of integrating environmental, social and governance (ESG) issues into business strategies.
Retailers, too, have slowed expectations. Supply-chain complexities and cost pressures are cited as reasons. But pushing the target back a decade or so doesn’t solve those problems; it just kicks the problem in the future.
And let’s not pretend that cars and airplanes aren’t immune, places where clear paths to net-zero, in places, stand. Business Travel recently highlighted how even policy support has become problematic.
So, where do we go from here? First: a reaffirmation, not a revision, of net-zero commitments. Ambition must translate into actionable, transparent, science-based reform plans – not adjustable targets that bend to the whims of short-term pressures.
Second: collaboration over regression. Businesses large and small should rely on a framework like the Science Based Targets initiative, which provides strong, science-based ways to reduce emissions. These are not gimmicks; they are roadmaps for the fitness industry.
Third: innovate, don’t give up. Let’s double down on electrification, circular economy models, and zero emissions supply chains. And let’s bring SMEs along for the ride. Data from the latest UK Net Zero Business Census shows that the majority of large firms still view net zero as a strategy – a sign of motivation when it comes to action.
Finally, let’s declare the folly of short-termism. I am not a romantic, or a climate activist by trade. But a business is nothing without its nominal capital. The choice is simple: be remembered as the generation that faced the challenge of our time with wit and intelligence, or the one that blinked.
UK business must not compromise its net-zero pledges by 2026. Not because it is easy, but because it is the only reliable way to sustainable growth, investor confidence and competitive advantage in a rapidly changing global economy.
