UK businesses are failing to meet their sustainability targets due to skyrocketing costs, new research shows.
An OVHcloud analysis showed that more than three in ten IT leaders believe they will not meet sustainability goals in the next two years. 45% cited cost as one of their main challenges, and only one in ten said they had no concerns about becoming a greener business.
More than a third of organizations now measure carbon emissions in all three areas: direct emissions that they own or control, indirect emissions from the purchase and use of electricity, steam, heating and cooling, and other indirect emissions that they produce in their upstream processes and downstream activities.
However, the study found that this figure will only increase by 2% in the next five years.
This, the company said, raises the possibility of a “green plateau” as companies will not be able to maintain their sustainability momentum in the coming years.
“Understanding your carbon footprint and greenhouse gas emissions is a crucial step on any organization's path to becoming a more sustainable business,” said Gregory Lebourg, Global Head of Environment at OVHcloud.
“It's great that 36% of companies are measuring in a comprehensive and thoughtful way, but if just another 2% of companies start doing so in the next five years, the impact on the environment could be very significant.”
In terms of their sustainability priorities for the next five years, 44% said they were looking at recycling initiatives, and 41% were looking to optimize energy use.
Three in ten said they were examining the impact of minimizing travel and fuel efficiency.
“The positive side of the fluctuation in gas and electricity prices over the last eighteen months is that it has helped organizations realize that more sustainable energy sources and improving energy efficiency, particularly in technology, is not just an established way to save money, but also save the planet,” said Lebourg.
“As many organizations are concerned about the price of sustainability initiatives, they should work to reframe these initiatives in terms of their long-term savings potential. When articulated correctly, sustainability can also be frugality, which helps build a compelling case for return on investment.”
The report echoes recent research from Kyndryl and Microsoft on the progress of green initiatives at technology companies.
The joint study found that while 85% of organizations say they place a “high strategic level of importance” on achieving sustainability goals, only 16% have integrated sustainability into their data strategies and practices.
This week's budget has been widely criticized for not giving businesses enough incentives to become more sustainable.
“While the slight increase in Green Industries Growth Accelerator (GIGA) funding will be welcome for businesses, it is a small step towards one of the biggest opportunities to inject growth into the economy,” said Alasdair Johnstone of the Unit. of Intelligence on Energy and Climate.
“At a time when the US and EU are competing for investment in clean industries, there was little here to attract investment in clean industries.”
