Businesses are reframing how they talk about net zero but remain committed to decarbonization and wary of the cost of inaction, according to BSI’s 2026 G7 ‘temperature check.’
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 said the cost of transitioning was outweighed by the long-term benefits.
In the United States, 74% of businesses are concerned about future costs and resilience, reinforcing that climate action is viewed as a business-critical issue.
“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,” says Susan Taylor Martin, chief executive, BSI. “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.”
Key takeaways:
· 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, one-third of all businesses had revised plans in the last year (32%) and 33% had reevaluated their targets. Only 14% paused targets and only 13% had dropped them. 76% say they will take steps to reduce emissions, although many are placing less emphasis on net zero.
· Three quarters (76%) of G7 leaders 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.
· 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 United States, joint highest with Canada).
· The majority (61%, 55% in the United States) of G7 leaders admitted shifting how they promote or communicate net-zero actions in response to climate skepticism 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.
· 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.
· Only one-fifth had undertaken climate risk adaptation planning (one-third said this was in process) and just 21% had invested in renewable energy procurement.
· 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.
· High energy prices 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.
· 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.
· In the United States, 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.
· U.S. business leaders want 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.
- Over half (54%) of U.S. businesses 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.
- Three-quarters of U.S. 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.
