- Estimation of a positive outcome is at odds with fundamental knowledge gaps.
- Nearly half of organisations cite sustainability decision-making as ‘slow’.
- Missed opportunities around unlocking commercial and environmental value.
- More than 88% would leave their role over organisational inaction or persistent barriers to progress.
There is a disconnect between organisational confidence and the ability to deliver on decarbonisation commitments within organisations, which threatens to undermine the collective ambition of reaching Net Zero by 2050, reveals new research from Equity Energies, part of DCC plc.
This is according to its recent study, Carbon Admissions: We don’t know what we don’t know, which explores attitudes and sentiment to advancing progress on Net Zero across multi-sector organisations spanning hospitality, manufacturing, local authority and private healthcare.
Positive outlook
[1]Positively, 94% of organisations say that Net Zero is a priority within their organisation compared to other initiatives. [2]Moreover, there are high levels of optimism and confidence reported by those tasked with advancing Net Zero, with 92% saying they were confident in their ability to implement and roll-out their Net Zero pathway within their organisation, and 94% saying they are confident that key stakeholders and decision-makers within their organisation have sufficient knowledge of Net Zero and how to get there.
[3]Furthermore, 91% feel confident in their own knowledge of Net Zero and how to achieve it, and 89% say they are confident in the ability of their organisation to be Net Zero in line with the UK Government commitment of 2050, with 87% also indicating confidence in the commitment and leadership of the current UK Government in achieving this target.
Optimism bias
However, this perceived confidence is misaligned with reality which is creating optimism bias – an overestimation of the likelihood of a positive outcome. Underpinning sustainability ambitions are gaps in expertise, with the [4]overwhelming majority of respondents (98%) admitting they lack knowledge in fundamental and foundational processes required to advance Net Zero. Such shortcomings will create ambiguity including around starting positions, target setting and ongoing monitoring and measurement of decarbonisation initiatives.
The areas of greatest concern relating to lack of knowledge are;
- Monitoring and measurement (19.2%)
- Target setting (19%)
- Baselining and benchmarking (16.8%)
- Data and insights (15.6%)
- Net Zero pathway design and creation (15.6%)
- Execution of efficiency measures / technologies (12.2%)
[5]This is being compounded by almost half (45%) of businesses citing speed and efficiency of decision-making around sustainability and Net Zero as ‘slow’ within their organisations, meaning opportunities to derive commercial value while advancing progress is being overlooked by UK organisations.
Job dissatisfaction
Knowledge gaps are not the only factor threatening sustainability progress. Despite the growing urgency surrounding the climate agenda and the transition to a low-carbon economy creating a burgeoning green jobs sector, more than three quarters (77%) of individuals responsible for Net Zero within their organisation say continued scrutiny and intensity around the need to demonstrate Net Zero progress was negatively impacting their job satisfaction and fulfilment.
[6]This is contributing to ambition apathy; a growing indifference among those tasked with delivering Net Zero, 88% of whom say they would be likely to leave their role altogether if faced with organisational inaction or persistent barriers to progress.
When ranked by most impactful, these barriers include scaling back of emissions targets (36%), lack of prioritisation compared to other organisational initiatives (33%) and internal politics or lack of cohesive decision-making (35%).
Ryan O’Neill, Chief Strategy Officer, Equity Energies, said:
“All progress is progress when it comes to Net Zero, and the passion, commitment and confidence within UK organisations to get there is to be commended and celebrated. But to know where we’re going, we must know where we’re starting from – both organisationally and in our own personal knowledge and understanding.
“We don’t know what we don’t know, and that has been demonstrated through this research. But it’s okay not to have all the answers when it comes to Net Zero. Asking questions is the first step to begin change and unlock progress.
“That’s why we’ve launched our Carbon Admissions campaign, to encourage more honesty and transparency on what we don’t know, and to inspire more open conversations within UK organisations on the questions they have relating to how to reach Net Zero. By doing so, we can widen access to the shared experiences, information, intelligence and expertise that can collectively help each other on the next step to a better tomorrow.”
More information on the Carbon Admissions campaign and downloadable Net Zero support guides can be found by visiting www.equityenergies.com/carbonadmissions.
[1] Combines ‘A high priority’ and ‘Somewhat a priority’
[2] Combines ‘Very confident’ and ‘Somewhat/slightly confident’
[3] Combines ‘Very confident’ and ‘Somewhat/slightly confident’
[4] Combines areas cited where respondents lack knowledge
[5] Combines ‘Very slow’ and ‘Somewhat slow’
[6] Combines ‘Very likely’ and ‘Somewhat likely’
