Business News Round Up (04/11/2021)
COP26 sees UK businesses lead the world in climate change commitments
Britain’s largest businesses are leading the way in the global transition to net zero emissions, with over half of FTSE100 companies now committed to eliminating their contribution to climate change by 2050. As of today, 60 of the UK’s FTSE 100 companies have signed up to the United Nation’s Race to Zero campaign – the largest ever global alliance committed to achieving net zero carbon emissions by 2050 at the latest, backed by independent experts and organisations to ensure everyone in the Race is following through on meeting their targets – signally a strong shift in the UK economy to a greener future. Accelerating momentum from UK businesses means that pledges have more than quadrupled since November last year, now representing total market capital of over a trillion pounds and combined turnover of £700 billion. Globally, over 5,200 companies of all sizes have now joined the UN Race to Zero, representing sectors like transport, technology, manufacturing, retail, and finance. Nearly half of these are British businesses, with the UK private sector demonstrating international leadership in global efforts to tackle climate change.
Scottish economy struggling to recover from pandemic
Scotland’s economy all but flat-lined in August, according to the latest official figures, with growth a negligible 0.1 per cent of GDP.Scottish Government statisticians also reported onshore GDP grew by 2.6% in the three months to August, indicating a slowdown in the third quarter of the year. Scottish GDP grew by 5.6% in the second quarter, from April to June. The Scottish figure for August was an improvement on July’s 0.2% contraction in GDP. However it compares to a 0.4% growth in UK GDP in August. Scotland’s onshore economy remains 1.3% below the pre-pandemic level of February 2020, while the UK economy as a whole is 0.8% smaller. The latest Scottish data showed the services sector growing by 0.2% in August, with increases in 11 of its 14 subsectors. The biggest contributor to services growth in August was an 8.7% rise in accommodation and food services, as tourism and hospitality benefited from an easing of Covid restrictions. However, this was partly offset by a 3.6% fall in the health and social work sector, with Covid testing and quarantine having an impact.
https://www.heraldscotland.com/politics/19691145.scottish-economy-struggling-recover-pandemic/
COP26: UK firms forced to show how they will hit net zero
Most big UK firms and financial institutions will be forced to show how they intend to hit climate change targets, under proposed Treasury rules. By 2023, they will have to set out detailed public plans for how they will move to a low-carbon future – in line with the UK’s 2050 net-zero target. An expert panel will set the standards the plans need to meet to ensure they are not just spin. Any commitments will not be mandatory. Green groups say this is not enough. Net zero is when a business or a country achieves an overall balance between the amount of carbon it is emitting and the carbon that it’s removing from the atmosphere. Firms and their shareholders will be left to decide how their businesses adapt to this transition, including how they intend to decarbonise. And although the plans will need to be published, the government said “the aim is to increase transparency and accountability” and the UK was not “making firm-level net-zero commitments mandatory”.
https://www.bbc.co.uk/news/business-59136214
Growth Company business survey reveals optimism of Greater Manchester firms
The Growth Company has published the results of its most recent Business Survey, outlining the strengths and key concerns of businesses across Greater Manchester. The survey, conducted in October 2021, revealed that businesses in the city-region are more optimistic about their growth prospects compared to the same period last year. 74% of firms expect an increase in profits, with the creative, tech and professional services sectors the most confident for future growth. However, only a quarter of firms experienced an increase in sales over the last eight weeks ahead of their survey response. The number of businesses reporting decreased sales has increased since the previous Situation Report, with hospitality (50%), manufacturing (33%) and retail businesses (29%) worst affected. Businesses also reported feeling the pressure of supply chain disruption, with 29% indicating a negative impact from Britain’s withdrawal from the EU, as well as inflationary pressures from rising costs of energy and materials.