The Government seems intent on letting the net zero opportunity pass us by - Gareth Griffiths

This isn’t just the cost hitting people in their pockets – as they face a cost of living crisis – but also the cost to the environment. Mission Zero’s findings were published at the start of the year and highlighted how the green transition offers an “historic” opportunity for our country, for potential economic growth as well as attracting international investment.

Despite this evidence, the Government seems intent on letting this opportunity pass us by, compounding that error by seeking to ditch or delay targets for agreed actions to cut carbon emissions and support further fossil fuel extraction from under the North Sea. So where does that leave us?

At the moment, businesses are frustrated and the public is confused. We and other businesses have repeatedly called for clarity on steps towards net zero at a national level and a joined-up approach for how to tackle the biggest challenge of all our lifetimes.

Private investment and individual commitment will be essential to reach net zero, and it would be fair to expect this to be guided by policy and strategy set nationally. But progress made so far has been in spite of - not because of - Government policy. Decisions have been announced, then reversed or contradicted.

Within the housing sector, the rating system of EPCs (Energy Performance Certificates) is an example of Government action falling short and not helping consumers. EPCs have been the only substantive measure introduced to help improve our housing stock’s energy efficiency. This means mortgage lenders have to rely on EPC data on likely outgoings for energy bills when assessing mortgage affordability.

Last week the Government rolled back plans on minimum EPC ratings which were designed to improve some of the least energy efficient properties in the rental market. In a complete policy reversal favouring landlords, this further highlighted the social injustice which exists. We need a Government prepared to stay the course and work with business towards net zero. When organisations as disparate as Ford and the National Trust are united against changes to national green policy, surely the economy versus environment argument doesn’t stack up.

Companies need clarity so they can plan long-term investment in resources and development. Consumers need reliable information and trustworthy advice so they’re able to make better choices.

As politics has become more polarised, public trust in politicians has fallen ever further while conversely faith in business leaders has climbed.

Successful businesses work hard to understand their customers and their needs. Armed with this insight into what matters to their customers, they then can judge how best to apply their knowledge and resources to deliver progress and operate effectively and profitably. So I would urge businesses leaders, across Yorkshire and beyond, to hold fast to their commitments to net zero and grasp the opportunities these offer for our customers, employees and communities.

Doing good for the planet makes good business sense and the economic benefits will follow, a fact the Government seems determined to ignore.

In Ecology’s case, since we were founded as a member-owned organisation in the 1980s, environmental concerns have shifted firmly from niche to the mainstream.

Today our decision-making is still guided by our original purpose of building a greener society, challenging the norm and agitating to change finance. And by the end of 2022, the initial £5,000 investment by our founders four decades ago had grown to more than £300m in assets.

In our own sector, retrofitting the UK’s ageing housing stock is an urgent priority when domestic property is responsible for 16 per cent of all the country’s carbon emissions.

If we get it right, retrofitting offers the economy so many benefits, from job creation to developing new industries and technologies, in addition to its goal of cutting carbon emissions and bringing down domestic heating bills. The next generation of insulation, solar panels, and alternatives to gas heating systems all need designing and manufacturing, with the financial upside to businesses estimated at $61bn by 2030.

Gareth Griffiths is chief executive of Ecology Building Society.