Two in three firms are not measuring their full baseline carbon footprint, including scope 1, 2 and 3 emissions, a report is warning.

This lack of action comes despite just under half of companies receiving requests for carbon data from customers and through tendering applications.

The research found larger organisations are “cascading requirements down through their supply chain” often to small and medium sized organisations “who fall outside the scope of regulatory compliance”.

Three in five firms surveyed for the research said that financial constraints were a “significant barrier” to taking positive steps to save the planet from the impact of carbon emissions.

“This underscores the need for tailored financial support mechanisms to facilitate progress towards decarbonisation,” says the research, which has been published by UK Business Climate Hub in partnership with sustainable certification organisation PlanetMark in their 2024 UK Net Zero Business Census.

They are calling for larger companies to “play a pivotal role by leading through example” through their supply chain.

“They have the capacity to offer mentorship and resources, strengthening the overall net zero effort, but also ensuring a more cohesive and unified movement towards sustainability across different business sizes,” states the report.

“Collaboration with other industry stakeholders to develop sector-specific decarbonisation plans and templates that help solve key industry challenges is also an incredibly useful activity for large organisations to proactively participate in.”

Policy makers are also being urged to take action, to “explore cost-effective ways to alleviate high costs” to action on net zero.

This could include incentives such as “Help to Green” vouchers, which has been suggested by UK Finance.

They should also improve regulatory certainty to boost confidence among firms in investing in net zero initiatives. Lack of certainty is highlighted as a barrier among half of companies.

Government backed low-interest loans and grants around energy efficiency and tracking emissions should also be more readily available. Lack of access to such finance was highlighted as a barrier among more than half of respondents.

“Targeted support and a stable policy environment is critical” for companies to implement effective net zero strategies, said PlanetMark policy and corporate development director Andrew Griffiths.

“The new Labour government has a unique opportunity to create the right policy environment to support organisations, and the economy more broadly, on our net zero journey,” he added.

More than 2,000 firms were surveyed for the research.

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