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’.
The research conducted in February 2026 showed business leaders are cognizant of the need for climate adaptation and resilience measures. In total, 81% of G7 leaders are concerned about future costs and their business's resilience if it does not prepare for climate change, while three quarters, in line with the U.S., said the cost of transitioning was outweighed by the long-term benefits. In the U.S., 74% of businesses are concerned about future costs and resilience, reinforcing that climate action is viewed as a business-critical issue.
With the Iran conflict and ensuing oil crisis placing greater emphasis on the shift to renewable energy, the study shows that three in four G7 business leaders (74%) think the economic risks of not transitioning are greater than the risks of doing so.
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. Most (78%) say even if targets are unattainable, decarbonization should still be prioritized, rising to 84% of U.S. businesses, the second highest after Canada.
Nevertheless, the data does indicate a shift in focus; a third of all businesses had revised plans in the last year (32%) and 33% had reevaluated their targets. This is instead of abandoning them - only 14% paused targets and only 13% had dropped them. In the U.S., businesses are continuing to act, with 76% saying they will take steps to reduce emissions, although many are placing less emphasis on net zero.
Reframing the net zero conversation
The research shows the current polarized climate around decarbonization is seen as an unhelpful distraction; three quarters (76%) of G7 leaders, 75% in the U.S., said policy uncertainty around net zero makes it difficult to invest confidently. Notably, nearly two-thirds (59%) of U.S. businesses expressed concerns about losing competitiveness against companies overseas if the federal government continues to scale back progress on net zero or abandons it entirely.
As a result, 83% want their governments to encourage and support businesses, while 79% anticipate net zero will be a political priority again in the next decade (compared to 83% in the U.S., joint highest with Canada), even if it is not one today for all parties.
In response, all G7 leaders, not only in the U.S., are reframing the conversation rather than rolling back on action. The majority (61%, 55% in the U.S.) admitted shifting how they promote or communicate net zero actions in response to climate scepticism in the media or politics in the last 12 months, far higher than the 24% who report having adjusted their plans in response to changes in political support. This is part of a broader 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.
Equally, decisions are being shaped by multiple factors and not simply the policy context; 78% of the G7 indicate they will continue to pursue net zero because it is good for business, while 76% say they are driven by customer or client expectations.
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.
Progress shifting rather than stopping – but barriers remain
In addition to political pushbacks, business leaders also highlighted wider economic pressures as key barriers. Although they recognize they should play a part, only 50% of G7 leaders felt net zero was achievable without disproportionate financial impact, and 77% believe their industry is expected to bear greater costs than others.
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, 23% of U.S. businesses said the cost of energy impacted their ability to take action, while 25% expect this problem to continue into 2027. This pressure is compounded by fluctuating energy prices and reduced visibility on future policy support, including uncertainty around tax credits and carbon pricing mechanisms.
While over two thirds of the G7 (69%) say they have a clear pathway to net zero and 68% are confident they understand the actions required, less (55%) believe they will ultimately achieve it, suggesting a gap between ambition and delivery that many businesses feel cannot be closed without additional support. In the U.S., 84% of businesses want greater government financial incentives, with 71% reporting that policies will make it easier for their business to reach net zero targets by 2050, although more (77%) say state-level policies provide greater certainty than federal approaches.
This comes as recent shifts in federal climate policy, alongside the scaling back of certain clean energy incentives and carbon market mechanisms, have increased uncertainty and made long-term investment decisions more difficult. As a result, U.S. business leaders are clear on what they need: stronger government support, particularly financial incentives, alongside clearer standards and more practical, industry-specific guidance to help them take action, cited by 32% of businesses.
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:
- Over half (54%) of businesses in the U.S. are concerned about legal or reputational risks related to their climate or net zero commitments
- A quarter (23%) of G7 leaders say they have adjusted targets in response to stakeholder expectations or market pressures, while a similar proportion have done so in response to climate-related risks or extreme weather events
- More than three quarters of business leaders say reducing net zero efforts would risk losing prior investment and increase future costs
- In the U.S., three quarters of businesses feel their industry is expected to bear greater costs than others, with many also saying the cost of doing business is already high
- A quarter (25%) of U.S. businesses expect economic instability to make progress on net zero more difficult in the next 12 months
- 31% of businesses say general guidance to help select standards would support them in taking action on net zero
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).
