Boost business participation in climate action
Proactively harness the power of businesses across Scotland for climate action and sustainable development by investing in awareness raising, and cultural and behaviour change programmes; asking more from businesses, including ensuring those accessing public money are, at a minimum, required to commit to learning about climate change and their role in driving transformative climate action, and stressing the opportunities and long term business benefits of acting on climate change.
The Scottish public and business sectors should work together to deepen understanding of climate change across all kinds of businesses while creating platforms for meaningful and sustained public engagement. While the introduction of an Environmental Impact element to the voluntary Scottish Business Pledge was positive, it remained optional. Furthermore, the Business Pledge lost momentum in recent years and has now been fully retired, as announced in December 2023 in the 2024-25 budget . A replacement scheme that makes environmental impact consideration a prerequisite, and one that has much clearer incentives for businesses to sign up, must be developed as quickly as possible.
Reforms to the tax system, and specifically via Non-domestic rates (business rates), could also provide greater accountability and incentivisation for businesses to do more to help to deliver national priorities and outcomes, most notably on poverty and fair work, but also in relation to climate action. For example, an option could be the introduction of a new ‘fair work and climate action supplement’ on Non-domestic Rates. This would see employers who do not meet certain criteria set by the Scottish Government pay a supplement on their bills.
The Scottish Government should also use public procurement to drive improved business practice through greater conditionality. The Scottish Parliament’s lead committee on climate change previously said that businesses in receipt of public money should “demonstrate credible action” in delivering social and environmental objectives. This should be embedded within initiatives like Fair Work First, or equivalent procurement focused schemes, making it compulsory for decision-making managers to undertake climate training (for instance, RSGS’ Climate Solutions) and then to identify specific actions to support transformative climate action in support of Scotland’s national climate change aims. A significant factor in uptake of climate measures within public and private sectors is a lack of traction and knowledge of solutions within senior positions. A fairly simple way to rectify this, beyond universal education, is to introduce minimum requirements for board membership, so that every board is encouraged to appoint at least one climate lead with relevant expertise. This could also be a minimum requirement for public procurement, and would help embed the commitment to net zero, embolden people within organisations to bring forward changes, and protect the organisations by ensuring they had market prescience and clarity around risks and opportunities attached to innovation and investment. It should be a reasonable expectation of any organisation with a serious net zero commitment and helps evidence that commitment, providing a strategic voice which challenges tendencies of short termism and one dimensional fiscal predominance in decision making.
For further information:
- Climate Solutions, RSGS, https://www.rsgs.org/climate-solutions
- Care, Climate and COVID-19 – building a wellbeing economy in Scotland, Oxfam, 2020, p17-19, – https://oxfamapps.org/scotland/wp-content/uploads/2020/11/CARE-CLIMATE-ANDCOVID-19-November-23-2020.pdf
- See also ‘Link business rates to carbon footprint’ policy.
