New data from the Institute of Directors shows that, as a result of rising energy costs, half of businesses are now more likely to invest in carbon reduction measures.
In a survey of nearly 600 business leaders, 16% also agreed that rising energy costs would make them more likely to invest in carbon reduction measures in the short term, 28% in the medium term and 22% in the long term.
Alex (Alexandra) Hall-Chen, senior policy advisor at the Institute of Directors, said: “With rocketing energy prices, many businesses are increasingly looking at investing in carbon reduction measures to ensure that they are more resilient to the impacts of energy price volatility in the short, medium and longer term.
“However, businesses also need clear signals from government to encourage long-term planning to move towards net zero. That is why we have called on government to introduce a lower corporation tax rate for companies that achieve net zero.”
In its recent policy paper, ‘The Green Incentive: how to put net zero at the heart of business planning’, the IoD has put forward proposals to provide businesses, and particularly SMEs, with an effective incentive to play their part in decarbonising the economy.