A startling new report reveals that climate change is slipping down the priority list for UK company boards, despite the crucial COP30 climate summit fast approaching in Brazil next year.
Corporate Climate Commitment Wanes
Research from the Carbon Disclosure Project (CDP) shows that only 24% of UK companies now consider climate change a top three boardroom priority, down significantly from 31% just two years ago. This decline comes at a critical moment, with the world preparing for the COP30 climate conference in Belém, Brazil, scheduled for November 2025.
The analysis examined climate-related disclosures from nearly 1,800 companies worldwide, including many major UK corporations. The findings paint a concerning picture of diminishing corporate focus on environmental issues despite increasing climate impacts and regulatory pressures.
Financial Pressures Overtake Climate Concerns
According to the report, immediate financial pressures including inflation, energy costs, and supply chain disruptions are pushing climate considerations down the corporate agenda. Many businesses appear to be treating climate action as a luxury rather than a fundamental business imperative.
The percentage of UK companies linking executive pay to climate targets has stagnated at 45%, showing little progress in aligning leadership incentives with environmental goals. This lack of accountability mechanisms raises questions about the seriousness of corporate climate commitments.
Meanwhile, the analysis found that only 38% of UK firms have implemented a credible climate transition plan, despite growing investor demand for such roadmaps. This planning gap leaves many organisations unprepared for the accelerating transition to a low-carbon economy.
Global Context and Future Implications
The timing of this corporate backtracking couldn't be more concerning. The COP30 summit in Belém represents a crucial milestone in global climate diplomacy, where nations will assess progress since the Paris Agreement and potentially set more ambitious targets.
Steve Waygood, chief sustainability officer at Aviva Investors, which commissioned the research, expressed deep concern about the findings. He emphasised that private sector engagement is essential for delivering climate goals, and that boardroom complacency could undermine international efforts to limit global warming.
The research also highlighted regional variations, with European companies generally maintaining stronger climate focus than their UK counterparts. This divergence suggests that regulatory environment and policy certainty play significant roles in sustaining corporate climate action.
As pressure mounts ahead of COP30, environmental groups and responsible investors are calling for urgent course correction. They argue that addressing climate change represents not just an environmental imperative but a fundamental business resilience issue that forward-thinking boards cannot afford to ignore.
