UK Business Group Alliance for Net Zero (2024)

FAQs

What is the net zero alliance in the UK? ›

The UK Business Group Alliance for Net Zero (BGA) is a formal network of leading business groups working to increase political and business ambition with the aim of achieving net zero greenhouse gas emissions by 2050 in the UK. The BGA officially launched on 29 April 2021.

Leading UK businesses like BP, Ericsson, IKEA, BT Group, British Airways, Unilever, Shell and Sainsbury's, are already committed to reducing their greenhouse gas emissions and many of them have set targets to reach net-zero emissions in their supply chains (Scope 3 emissions).

Policy developments in 2023

The 2021 Net Zero Strategy set out a series of policies and commitments designed to enable the UK to reach net zero by 2050. It includes measures to deliver emissions reductions to meet targets up to the sixth carbon budget (which covers the period between 2033 and 2037).

The UN-convened Net-Zero Asset Owner Alliance (NZAOA) is a member-led initiative of institutional investors committed to transitioning their investment portfolios to net zero GHG emissions by 2050 – consistent with a maximum temperature rise of 1.5°C.

The Climate Change Act commits the UK government by law to reducing greenhouse gas emissions by at least 100% of 1990 levels (net zero) by 2050.

According to CCC, the UK's GHG emissions fell by 40% in the previous three decades, and in order to achieve net zero they must fall a further 100% in the next three decades. In the chart below you can see how an overview of how the greenhouse gas emissions have been falling over the last three decades.

In simple terms, being net zero means adding no more greenhouse gases to the Earth's atmosphere than the amount you're taking out.

The UK has been relatively successful in cutting its emissions so far. But the government's independent advisers, the Climate Change Committee (CCC), have expressed concerns that the UK could miss its future targets, owing to "worryingly slow" recent progress.

Looking at the millions of items of net zero technology that could have been installed in the past decade, the extra costs for households and government were an estimated £56bn over the two years of 2022 and 2023.

The elimination of power stations that burn coal has helped Britain cut its carbon emissions faster than any other rich country since 1990 (see charts).

What is the role of transition plans in the UK's pathway to net zero? ›

The Net Zero Transition Plan Standard provides an opportunity to drive changes in corporate behaviour to ensure the UK meets its targets, send a clear signal to investors that the UK is open for low-carbon investment, increase engagement and support for the development of transition plans and incentivise companies and ...

This Alliance was initiated by Allianz, CDC, CDPQ, Folksam Group, PensionDanmark, and SwissRe. Since then, Alecta, AMF, Nordea Life and Pension, Storebrand, and Zurich have joined as founding members.

Becoming a net zero business may be attractive for investors and shareholders looking for companies with a long-term sustainable strategy. Investors may be attracted to smaller businesses that are less reliant on fossil fuels, as business operations are less likely to be disrupted in the event of supply problems.

The 'net zero target' refers to a government commitment to ensure the UK reduces its greenhouse gas emissions by 100% from 1990 levels by 2050. If met, this would mean the amount of greenhouse gas emissions produced by the UK would be equal to or less than the emissions removed by the UK from the environment.

The Jet Zero Strategy, published in July 2022, set out the Government's approach to achieving net zero 2050 for UK aviation – focusing on the rapid development of technologies in a way that maintains the benefits of air travel, whilst maximising the opportunities that decarbonisation brings to the UK ¹.

We commit to do everything within our power and influence to rapidly reduce our greenhouse gas emissions and work with our residents and businesses to bring our wider communities' emissions in line with Net Zero as soon as possible.