More than three-quarters of large businesses consider net zero a priority in the next 12 months, according to a new poll. However, the proportion falls to 35% among SMEs.

The figures, revealed by the 2025 Net Zero Business Census, from the UK Business Climate Hub, a partnership between large companies and the government, indicate a clear divide between large and small companies. More worrying for the climate, 70% of UK businesses say the uncertainty over regulation and policy forms a barrier to action.

It’s also clear that cost presents an impediment to change, with 66% of those companies polled citing expense as a moderate or significant barrier to progress, while 41% want the government to increase access to grants or funding. Only 7% say they have accessed available funds and grants, with a mere 4% able to say they had “engaged” with financial institutions about net zero.

The report concludes: “The data shows that organisations of all sectors, sizes and UK regions are at widely varying stages of taking net zero action, but critically that a significant proportion are united in prioritising, planning and actioning meaningful steps to decarbonise in the near-term… .”

The report adds: “The leadership being shown by many UK organisations can deservedly inspire others, fostering a sense of shared responsibility and accelerating collective progress by turning ambitions into tangible action.”

2050 target ‘impossible’

Progress in regard to net zero in the UK has become a sensitive topic. The Tory party, under Kemi Badenoch, has turned against the legal 2050 target for net zero, saying it is “impossible”.

In recent weeks, the UK’s Independent Climate Change Committee, which advises government, said the country should prepare for at least 2°C of global warming by 2050—as a minimum.

In the US, the Trump presidency has pushed back hard against sustainability policies, even effectively killing off a new climate risk-reporting regime. Meanwhile, Republican states have attacked investment fund managers who use ESG criteria as part of their asset allocation process.

The UK census has caused some concern. In the report, David Bharier, head of research at British Chambers of Commerce, notes that only a “minority” of business have embarked on a net zero journey marked by high costs. There are also differing motivations.

“For some the transition is framed primarily in moral terms—about doing the right thing—while others remain cautious, citing costs, uncertainty or simply not knowing where to start.”

Some companies, however, are innovating and experimenting. “The challenge now is to bridge this uneven landscape, speak in terms that work for business and ensure every size and sector can take clear benefits.”