Grant Morrison

The firm’s latest The Real Economy report has revealed 30% of businesses do not have a sustainability strategy in place. This includes a quarter (25%) planning on creating one in the next 12 months and another 5% stating they had no plans to create any formal strategy.

In addition, almost a quarter of businesses (24%) still haven’t set net-zero targets to reduce emissions produced by their business despite key efficiencies and cost savings this could deliver. Encouragingly, almost three quarters of businesses (74%) have set net zero targets, but of these businesses, 21% don’t have a strategy or transition plan in place to reach these targets.

Grant Morrison, partner in Aberdeen and head of oil and gas at RSM UK, said: “Our survey shows that almost a third of businesses lack a sustainability plan or strategy, which highlights the need for clarity from government on the transition to clean energy and the role of businesses in supporting this.

“It’s complex, so embedding the energy mix, infrastructure, skills and investment will be key to its success.

“Aberdeen has cultivated a skilled workforce and infrastructure and using this experience to deliver clean power generation will help support the ambitious aims of the recently established GB Energy, making it the logical choice for the initiative’s headquarters. Retraining, upskilling and deploying the city’s workforce, while drawing on its strategic location, research institutions and current renewable projects, presents an opportunity for Aberdeen to be a pivotal part of the UK’s energy transition.

“Although the government has established a climate change strategy, what’s missing is a wider industrial strategy which outlines how the key energy sources and investment framework, including R&D and tax incentives, will deliver change in conjunction with GB Energy.”

Rich Hall, partner and head of sustainability at RSM UK, added: “The delay in formalising a plan for many businesses could be due to sustainability fatigue.

“Globally, there are different levels of proactivity around the green agenda, and when you combine this with inconsistency in strategy both here in the UK and across the globe, the complexity can be exhausting, and in some cases, lead to paralysis.

“With upcoming legislation that will require businesses to disclose not only climate but broader sustainability risk, businesses need to create a comprehensive strategy, underpinned with a funding plan, that is embedded at board level, throughout the business and its supply chain. Rooting sustainability within the culture and fabric of a business will not only facilitate progress and mitigate risk, but unlock commercial opportunities; increase competitive edge; and attract key talent to an organisation.”