On 7 December, the 15th meeting of the Conference of the Parties to the Convention on Biological Diversity, or COP15, will begin in Montreal, Canada. Over two weeks, world leaders and others will meet to negotiate a new global biodiversity framework to “allow for the recovery of natural ecosystems with net improvements by 2050.” ((Convention on Biological Diversity CBD))
As described by a 2021 HM Treasury commissioned report (PDF, 1,888 KB), we rely on nature to provide us with food, water, and shelter; regulate our climate; maintain nutrient cycles and oxygen production; and for recreation and recuperation opportunities. Biodiversity, which includes all species of animals and plants, enables nature to be “productive, resilient, and adaptable.” UN statistics show that biodiversity is deteriorating worldwide, and it has warned that this could accelerate without changes, with consequences for nature globally.
Despite this, our data shows that 3 in every 100 UK businesses monitors nature and biodiversity risks. This article explores the concerns of UK businesses when it comes to the impact of climate change as well as the actions they are taking to protect the environment, including nature and biodiversity, and the actions they are taking to reduce greenhouse gas emissions.
Two in five businesses (37%) surveyed between 20 September and 2 October through our Business Insights and Conditions Survey (BICS) said that they were either "very" or "somewhat" concerned about the impact climate change may have on their business.
The figures are for UK businesses that have not permanently stopped trading and includes data collected from businesses across a range of industries: non-financial services (such as transport, accommodation and food), distribution (such as retail), production (such as manufacturing), and construction (such as housebuilding). BICS does not cover businesses in: agriculture; public administration and defence; public provision of education and health; finance and insurance; oil and gas, and energy.
3 in 100 businesses monitor nature or biodiversity risks
Businesses were asked to report on a range of strategic actions they have taken to help protect the environment. These included: having a climate change strategy; having a net zero or greenhouse gas emissions target; monitoring climate-related risks; and monitoring nature or biodiversity-related risks. Responding businesses were also able to report “none of the above”, “not sure”, or “other”. In all, 14% of UK businesses said they had taken one or more actions.
Looking at specific actions, and firstly focusing on the theme behind COP15, 3% said that they monitor nature or biodiversity-related risks. In addition, nearly two thirds (64%) of UK businesses reported that they had not taken any strategic action to protect the environment.
The Organisation for Economic Co-operation and Development (OECD) outlines a wide range of biodiversity-related risks to businesses, including risks to operations. For example, biodiversity for food and agriculture is declining, creating risks in agriculture and food businesses’ supply chains.
Small numbers of responding businesses (288 out of 9,617 responding businesses) said they monitored nature or biodiversity-related risks. For industries with large enough samples sizes to report, the transportation and storage industry was the most likely to report monitoring nature and biodiversity-related risks (8%). Private education and real estate activities were least likely, with none of the businesses in these industries reporting this.
We also asked businesses if they had a nature or biodiversity strategy or target, however, relatively fewer businesses reported these, and we are unable to report overall estimates for all UK businesses.
Figure 1: Transportation and storage industry most likely to monitor nature or biodiversity-related risks
Percentage of businesses not permanently stopped trading who reported monitoring nature or biodiversity-related risks by industry, UK, 20 September to 2 October 2022
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Notes:
The question was: “Which of the following actions, if any, has your business taken to help protect the environment?” The list of response options can be found in the linked dataset (see Wave 66 table named “Environment Protection TS (WTD)”).
“*” shows where the industry has been suppressed because of a small response size. Suppressed industries are still included in the “all businesses” total.
The figures do not cover businesses in: agriculture; public administration and defence; public provision of education and health; finance and insurance; oil and gas, and energy.
“None of the above” was the most frequent response by businesses asked about the strategic actions they have taken to help protect the environment. This was reported by 64% of all UK businesses in the industries covered by BICS. Businesses from the arts, entertainment and recreation industry and the human health and social work activities industry were most likely to say this (both 80%). A further 22% of UK businesses reported that they were “not sure,” while 3% said they were taking “other” measures to help protect the environment.
Actions businesses have taken to reduce emissions
The UK Government target is to reach net zero greenhouse gas emissions by 2050. A range of businesses will be required to publish transition plans. This is expected to take place in 2023.
As previously noted, 3% of UK businesses reported they had a net zero or other greenhouse gas emissions target. BICS also asked businesses about practical actions taken to reduce their emissions. These included:
- switching to LED bulbs
- insulating buildings
- installing renewable electricity or heating
- installing charging points
- installing a smart meter
- electrifying their vehicle fleet
- adjusting heating and cooling systems
- introducing a cycle to work scheme
- going paperless
Businesses were also able to report that “no actions have been taken to reduce emissions” or if they were unsure.
Most frequently, businesses said they switched to using LED lightbulbs (32%).
Other popular emissions-reducing actions were going paperless (29%), adjusting heating and cooling systems (25%), and installing a smart meter (12%). Around 3 in 10 (31%) businesses reported taking none of these actions, while 14% were unsure if they had taken any actions.
Figure 4: Around one in three (32%) UK businesses said they have switched to LED bulbs to help reduce their emissions
Percentage of businesses not permanently stopped trading who reported taking actions to reduce greenhouse gas emissions, UK, 20 September to 2 October 2022
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Notes:
The question was: Which of the following actions, if any, have you taken to reduce your business’s carbon emissions? The list of response options can be found in the linked dataset (see Wave 66 table named “Carbon Emissions TS (WTD)”).
The figures do not cover businesses in: agriculture; public administration and defence; public provision of education and health; finance and insurance; oil and gas, and energy.
The manufacturing industry was the most likely to have switched to LED bulbs (48%) while the transportation and storage industry (16%) was the least likely. Going paperless was most popular in the education industry (46%), with other service activities least likely to make this change (12%).
The arts, entertainment and recreation industry was least likely to report taking measures to reduce their emissions, with 48% of businesses taking no actions at all. By comparison, businesses in the other service activities industry were most likely to have done something to reduce emissions, with 15% of businesses taking no actions. The smallest businesses (with 0 to 9 employees) were most likely to have taken no action (33%) while the biggest businesses with 250 or more members of staff were least likely to have not acted (5%).
Concern about the impact of climate change varies across industry and size
Based on data collected from BICS between 20 September and 2 October, 2022, 37% of all UK businesses are very or somewhat concerned about the impact climate change could have on their business.
This appears to contrast with the level of concern expressed by individuals about being affected by climate change. Our Opinions and Lifestyle Survey (data collected between 14 September and 9 October 2022) shows that three in four (75%) adults in Great Britain think that they will be directly affected by rising UK temperatures by 2030.
However, differences in the level of concern reported by businesses and individuals could be explained by differences in the survey questions.
The private human health and social work activities industry had the highest percentage of businesses reporting that they were not concerned about climate change (58%).
Figure 5: The transportation and storage industry is most likely to report being very concerned about the impact of climate change on their business, at 22%.
Percentage of businesses not permanently stopped trading and their level of concern about the impact of climate change by industry, UK, 20 September to 2 October 2022
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Notes:
The question was: Is your business concerned about the impact climate change may have on the business? (see Wave 66 table named “Climate Change Concern TS (WTD)”).
Water supply, sewerage, waste management and remediation activities" have been removed for disclosure purposes, but their totals are included in "All industries".
The figures do not cover businesses in: agriculture; public administration and defence; public provision of education and health; finance and insurance; oil and gas, and energy.
Larger organisations were more likely to report concerns over climate change on their business. Some 62% of businesses with 250 employees or more were either very or somewhat concerned about climate change impacts on their business, compared with 35% among the smallest businesses with between 0 and 9 members of staff.
Smaller businesses were most likely to report that they were not concerned (48%), while larger businesses were the least likely to report that they were not concerned (18%).
Figure 6: UK businesses' concern about the impact of climate change on their business decreases with business size
Percentage of businesses not permanently stopped trading and their level of concern about the impact of climate change by size (number of employees), UK, 20 September to 2 October 2022
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Notes:
The question was: Is your business concerned about the impact climate change may have on the business? (see Wave 66 table named “Climate Change Concern TS (WTD)”).
The figures do not cover businesses in: agriculture; public administration and defence; public provision of education and health; finance and insurance; oil and gas, and energy.