14 April 2026: Business 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 heightened geopolitical instability and the oil crisis placing greater emphasis on energy security and 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. 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.
The research, conducted in February 2026, showed business leaders are cognizant of the need for climate adaptation and resilience measures. In total, 81% expressed concern 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%). More than three quarters (77%) agreed climate change could disrupt their supply chain, while three quarters said their net zero efforts were important for future resilience (75%). Despite this, only a fifth had undertaken climate risk adaptation planning (a third said this was in process) and just 21% had invested in renewable energy procurement.
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 line with this, G7 business leaders are reframing the net zero conversation rather than rolling back on action. 61% admitted shifting how their business promotes or communicates net zero actions in response to climate scepticism in the media or politics in the last 12 months. This is far higher than the 24% who report having adjusted their plans in response to changes in political support. Equally, decisions are being shaped by multiple factors and not simply the policy context. 78% indicate they will continue to pursue net zero regardless of political uncertainty because it is good for business, while 76% say that, irrespective of politics, they are driven by customer or client expectation.
In fact, despite claims to the contrary by some politicians, most business leaders identify net zero as an opportunity. Four in five (78%) say economic growth can happen alongside decarbonization, while across the G7 76% say net zero will help grow the economy, create jobs and strengthen energy security. Three quarters think it will open new markets and innovation opportunities. And the vast majority say it is fair their business contributes to net zero efforts, even if this comes at an economic cost (74%).
Susan Taylor Martin, Chief Executive, BSI said: “Recent geopolitical events have brought into stark focus the need for energy security and the important role played by renewable and low carbon 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 recognised 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.”
Progress shifting rather than stalling – but barriers remain
Overall, 83% of G7 leaders report being 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. Most (78%) say even if targets are unattainable, decarbonization should still be prioritized. Nevertheless, the data does indicate some shift in focus; a third of 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 from our survey data only 13% had dropped them. This shift reflects businesses responding to market realities by adjusting how they pursue net zero commitments, rather than stepping away from them.
Clearly, barriers to action remain, not least the cost of doing business. Although they recognize they should play a part, 80% of G7 business leaders also said reaching net zero is adding pressure to their industry’s performance. Only 50% felt net zero was achievable without disproportionate financial impact, while 77% said their industry is being expected to bear greater costs towards net zero than others.
Whilst most business leaders accept they have a role to play in delivering net zero, 80% say the transition is adding pressure to their industry’s performance. Only half (50%) believe it is achievable without disproportionate financial impact, and more than three quarters (77%) say their industry is being asked to shoulder a greater share of the costs than other industries.
With energy prices high four years after Russia’s invasion of Ukraine – and now expected to be significantly higher for some time – this was the most barrier to action most mentioned by business leaders across the G7, cited by one in four. They also highlighted the lack of financing from banks or government to invest in green tech (25%). Nearly one in four (23%) said prioritizing business growth was more important.
Other barriers included lack of skills and knowledge to act on net zero (23%). Almost a third want either general or industry guidance and standards (31% and 30%), while 33% want training programmes and workshops to help their business's managers and employees to understand net zero and how to achieve it. The findings come as BSI prepares to open the public consultation on the world’s first independent ISO 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.
· A quarter (26%) say they have made adjustments in response to stakeholder expectations or market pressures (e.g. investors, customers, supply chain partners, etc.), while a quarter say they have done so in response to climate-related risks or extreme weather events.
· 69% said their organization had increased its overall level of action on net zero in the last year.
For more information and to access the full research, click here.
Notes to editors:
The report draws four key conclusions
1. Businesses remain strongly committed to net zero – they are recalibrating rather than abandoning plans
2. Political instability is creating hesitation but not derailing action
3. Businesses are reframing net zero in terms of resilience, risk and competitiveness
4. Costs, capability gaps and a fragmented regulatory landscape remain major barriers to progress
5. Businesses see clear economic upside in the transition
From there, it makes the following recommendations
1. Reframe net zero as a core resilience strategy – and bring finance into the conversation
2. Build climate adaptation into business planning
3. Design ‘politics-proof’ roadmaps
4. Consider internal capacity and seek support where needed
