April 14, 2026: Businesses are reframing how they talk about net zero but remain committed to decarbonization and wary of the cost of inaction, finds BSI’s 2026 G7 ‘temperature check’.
With the Iran conflict and ensuing oil crisis placing greater emphasis on the shift to renewable energy, the study shows that three in four business leaders (74%) think the economic risks of not transitioning are greater than the risks of doing so.
The research, conducted in February 2026, showed business leaders are cognizant of the need for climate adaptation and resilience measures. In total, across the G7 81% are concerned about future costs and their business's resilience if it does not prepare for climate change, while three quarters said the cost of transitioning was outweighed by the long-term benefits (75%). In Canada, concerns are even higher, with 88% of businesses concerned about future costs if they do not prepare for climate change, the highest of all G7 countries.
Overall, 83% of G7 leaders report being currently committed to achieving net zero by their national target, with three quarters (76%) saying it is important to maintain momentum, and just one in four explicitly expecting to cut spending.
Nevertheless, the data does indicate some shift in focus; a third of G7 businesses had revised plans in the last year (32%) and 33% had reevaluated their targets. This is instead of abandoning them, only 14% had paused targets and 13% had dropped them. In Canada, commitment is higher still, with 93% of businesses committed to net zero targets and 78% increasing their level of action in the past year. Additionally, 36% have reevaluated targets, with nearly half (42%) noting this was in response to policy or regulatory changes, the highest of all G7 countries (33%).
Reframing the net zero conversation
The research makes clear the cost of political uncertainty and geopolitical turbulence. Three quarters (76%) said policy uncertainty around net zero makes it difficult to invest confidently. In general, the polarized debate is seen as an unhelpful distraction; 83% want their governments to encourage and support businesses on net zero.
Yet, business leaders are taking a long-term, pragmatic view, with 79% anticipating net zero will be a political priority again in the next decade, even if it is not one today for all parties. In Canada, 86% want government support, though 71% warn political uncertainty could lead them to reconsider pursuing it altogether. Additionally, 22% note the government’s wider agenda has impacted their ability to take action in the last 12 months, while 20% say the same for geopolitical shifts, the highest of all G7 countries on both factors.
Notably, Canadian businesses are significantly more likely than their global peers to view external political dynamics as a risk. Two thirds (60%) see the increase in climate skepticism within the U.S. federal government as a threat to their business resilience, while 64% see it as a threat to Canada’s overall economic growth.
Due to this, all G7 business leaders are reframing the net zero conversation rather than rolling back on action. Notably, this sentiment is strongest in Canada, where 75% (compared to 63% globally) of businesses have changed the way they promote or communicate net zero action in response to climate skepticism in media or political circles in the last 12 months. This is part of a wider trend of businesses ‘climate coding’, or reframing net zero in terms of resilience, risk management and business continuity, rather than focusing on the environmental impact.
However, regardless of current political debate, businesses across the G7 will continue pursuing net zero because it is good for business (85%), their customers and clients expect it (83%), and they see it as necessary for a sustainable future (84%). Canadian businesses are among the most positive globally, with four fifths seeing net zero as supporting economic growth and competitiveness, particularly through new market and innovation opportunities (74%), although nearly a fourth (24%) still note political uncertainty as a key barrier.
Most business leaders also identify net zero as an opportunity not only for their business, but for their country’s overall well-being. Across the G7, over four in five (78%) say economic growth can happen alongside decarbonization, and 76% say net zero will help grow the economy, create jobs and strengthen energy security. Additionally, the vast majority say it is fair their business contributes to net zero efforts, even if this comes at an economic cost (74%).
Canadian businesses are the most committed to net zero – but barriers remain
Clearly, barriers to action remain, not least the cost of doing business. Although they recognize they should play a part, only 50% of all G7 leaders felt net zero was achievable without disproportionate financial impact, while 77% said their industry is expected to bear greater costs toward net zero than others. This pressure is even more pronounced in Canada, with over four fifths (88%) saying net zero is adding pressure to industry performance and 87% saying their industry is expected to bear greater costs than others.
Business leaders also highlighted the lack of financing from banks or governments to invest in green tech (25%). Nearly one in four (23%) said prioritizing business growth was more important. In Canada, a third (33%) of businesses say they have adjusted their net zero policy or transition plans in response to economic factors, including the lack of available financing for green investments (27%). Additionally, a quarter (25%) say a lack of sufficient incentives to sustain long-term net zero commitments, such as reduced levies, has impacted their ability to take action in the last 12 months, joint highest across the G7.
With energy prices high four years after Russia’s invasion of Ukraine – and now even higher following the Iran conflict – this was the most common barrier to action across the G7, cited by one in four. In the last 12 months, nearly a fifth (19%) of Canadian businesses said the cost of energy impacted their ability to take action, while more (21%) expect this problem to continue into 2027. This pressure is further compounded by wider economic instability and policy uncertainty.
Other key barriers include limited visibility around net zero actions taken by supply chain partners (25%), among the highest levels across the G7, with 22% saying this lack of visibility has directly impacted their ability to act, alongside 22% of businesses saying a lack of clear standards and guidance has also impacted their ability to take action in the last 12 months.
While over two thirds (69%) of G7 businesses say they have a clear pathway to net zero and 68% are confident they understand the actions required to reach net zero by 2050, only 55% believe they will ultimately achieve it, suggesting a gap between ambition and delivery that many businesses feel cannot be closed without additional support.
However, Canadian businesses are clear on what they need: 38% highlight the need for training programs and workshops to build internal capability, 35% want more guidance on achieving accreditation, and 34% call for practical tools to implement standards effectively. This aligns with wider demand and reinforces the need for practical support to turn ambition into action.
Susan Taylor Martin, Chief Executive, BSI said: “Recent geopolitical events have brought into stark focus the need for a societal shift towards renewable sources of energy. They have also shown the importance of adopting a resilience mindset when it comes to climate change, focusing on risk mitigation, supply chain management and future preparedness. What’s clear is that many business leaders are already thinking this way, and have recognized that the cost of not investing in net zero could threaten their operations in the long term. The next step is to bridge the gap between ambition and action through climate risk adaptation measures.
“Uncertainty and disruption are increasingly the defining characteristics of the global economy. Our role as BSI is to provide clarity, consistency and trust through standards, as businesses globally grapple with the transition to a net zero future.”
The findings come as BSI prepares to publish the public consultation on the world’s first independent net zero standard, due for launch in 2027.
Other key findings include:
- In countries with federal systems, three quarters said state or provincial net zero policies provided greater certainty than federal policies
- Three quarters (73%) said if their competitors scaled back their action, their business’s continued net zero efforts would give them a competitive advantage
- More than three quarters of business leaders say reducing net zero efforts would risk their business losing its prior investment and increase its future costs—rising to 87% in Canada
- In Canada, over a third of businesses have adjusted plans in response to technological advancements, 42% in response to changes in global climate agreements, policy, or regulation, and 32% in response to stakeholder expectations, all the highest across the G7
For more information and to access the full research, click here.
Notes to editors:
The report draws four key conclusions
- Businesses remain strongly committed to net zero – they are recalibrating rather than abandoning plans
- Political instability is creating hesitation but not derailing action
- Businesses are reframing net zero in terms of resilience, risk and competitiveness
- Costs, capability gaps and unclear regulation remain major barriers to progress
- Businesses see clear economic upside in the transition
From there, it makes the following recommendations
- Reframe net zero as a core resilience strategy – and bring finance into the conversation
- Build climate adaptation into business planning
- Design ‘politics-proof’ roadmaps
- Consider internal capacity and seek support where needed
About the research:
Research was conducted by Censuswide in February 2026, covering 7,068 business leaders in G7 countries (UK, US, France, Germany, Italy, Canada, Japan). Data was weighted to the profile of the business population in each country, specifically in terms of their size / number of employees, to ensure that ‘total’ figures reported are based on a nationally representative profile of businesses.
About BSI:
BSI is a business improvement and standards company that partners with more than 77,500 clients globally across multiple industry sectors. BSI provides organizations with the confidence to grow by working with them to tackle society’s critical issues – from climate change to building trust in AI and everything in between - to accelerate progress towards a fair society and a sustainable world.
For over a century BSI has been recognized for having a positive impact on organizations and society, building trust and enhancing lives. Today BSI engages with a 15,000 strong global community of experts, industry and consumer groups, organizations and governments to deliver on its purpose by helping its clients fulfil theirs.
BSI is appointed by the UK Government as the National Standards Body and represents UK interests at the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC) and the European Standards Organizations (CEN, CENELEC and ETSI).
