Press Release: Majority of Global Corporates Plan to Increase Net Zero Spending
Ahead of New York Climate week, most global corporates (61.7%) say they expect to invest more capital in getting their businesses to net-zero in the next 12 months, up from 58% a year ago, despite significant political change and uncertainty around the world.
Key findings from the research include:
- 7% of the world’s largest companies plan to increase their net-zero capital commitment by an average of 26.8%
- UK corporates plan the largest increase, followed by those in Germany and Australia
- Kenyan companies expect the lowest increase, followed by those in India and Brazil
A quarter of respondents (25.2%) say they will keep their capital allocations the same, while 13.1% say they will decrease.
On average the companies plan to allocate 26.8% more capital to cutting their carbon emissions, up from 22.4% in August 2023, according to new research conducted by global business financial research firm East & Partners and communications consultancy Impact & Influence.
Paul Dowling, Principal Analyst of East & Partners, said:
“Momentum clearly continues to build with the world’s largest companies planning to increase their investments in the transition to net-zero.
“The demand for climate capital is a huge opportunity for financial institutions, with even those markets at the lower end of the investment spectrum nudging their spending up slightly year-on-year.
“Factors such as public pressure, shareholder expectation and regulatory requirements mean that corporates will likely maintain their commitment to mitigating climate risks.”
UK businesses expect to boost their spending the most (40.8%), followed by those in Germany (35.4%) and those in Australia (34.9%).
In contrast, Kenyan companies are only planning a 9.6% investment increase, followed by India at 15.5% and Brazil at 16.9%.
Rishi Bhattacharya, CEO and Founder of Impact & Influence, commented:
“In a year when more than half of the world’s population is voting in elections, we might have expected political uncertainty to have curbed businesses’ climate investment efforts, but most appear to be committed to cutting their emissions.
“UK corporates already lead their global counterparts in terms of the level of capital investment they are expecting to deploy to reach net-zero, a figure which may surge further under the new Labour government.
“Whether US companies stick to their plans will likely be shaped by the outcome November’s election, with the two main contenders for the White House poles apart on the issue of tackling climate change.”
Source: East & Partners Global (link opens in a new window)
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