9 hours ago
- Business
- The Herald Scotland
Scots food and drink firms reveal net zero funding challenge
Nearly three-quarters (73%) of those surveyed said it was 'challenging' or 'very challenging' to secure the finance required to develop such plans, with around one-third (31.7%) saying that had not received any support. The overwhelming majority (88.9%) said that unlocking more financial support would help their business move towards net zero.
The survey comes as the validity of net-zero policies and the drive to tackle climate change are coming under pressure from forces on the political right, including the Trump administration in the US and Reform in the UK. President Trump signalled his support for the oil and gas industry with a pledge to 'drill, baby, drill' during the last US Presidential race, while energy giant BP recently diluted net zero targets and ramped up fossil fuel production, sparking criticism from climate campaigners. Food giant Unilever drew flak from the environmental lobby last year for watering down environmental and social targets.
Support for an increase in domestic oil and gas production, including in the North Sea, has also come into focus in the wake of Russia's full-scale invasion of Ukraine, which contributed to a major hike in wholesale gas prices in 2022.
The Scottish Government has a target of achieving net zero emissions of all greenhouse gases by 2045.
Read more:
Despite funding challenges, the Scotland Food & Drink Partnership's Net Zero Commitment said firms are embracing change and realising the commercial benefits of operating more sustainably. Some 92% said they have made energy efficiency savings already or plan to this year, while 73% have improved their local sourcing plan or intend to.
Iain Clunie, director of the Scotland Food & Drink Partnership's Net Zero Commitment, said: 'The findings of our business support survey demonstrate the scale of the task at hand to support Scotland's food and drink industry to reach net zero by 2045. While there are still too many businesses that don't yet have a codified net-zero strategy, they are still making material changes to their business operations to operate more sustainably – whether that's moving to renewable energy, creating efficiencies or reducing waste.
'The identification of funding as a fundamental barrier to businesses achieving net zero is unsurprising. Currently, funding windows are often too short, which SMEs (small and medium-sized enterprises) find challenging due to available time. We would like to see longer funding windows and more diverse funding options for SME food producers. SMEs make up more than 97% of all food and drink businesses in Scotland, so supporting them is critical to achieving our shared net zero-goals.
'Our national 2045 target is important and we clearly all need to accelerate the pace of change to achieve it, but for individual businesses, the key targets are those of their customers. Over the last 12 months, we have engaged with all of the major retail and foodservice providers in the UK to understand their commitments and the support that they can offer to producers. We published a guide earlier this year to help food and drink businesses understand those targets and what steps they need to make to maintain existing suppliers and to grow their businesses.
'The imperative to future-proof our businesses, operate sustainably, and reduce our emissions are not only commercial. This spring was the hottest on record. January was the driest on record. Climate change is real, and it is happening before our eyes.
'If we want Scotland to continue to be renowned globally for its incredible food and drink, we have to protect the environment that enables us to grow, farm and process our world-famous products.'
