Insurer Aviva PLC (LSE:AV.) has laid into the government’s recently relaxed stance on the environment, arguing that stalling plans to reach net zero could come back to bite.
Citing an increase in companies laying out plans to reduce carbon emissions over the past year, Aviva suggested it was now government inaction that risked the UK missing opportunities through the switch to a green economy.
“After years of being seen as a leader in climate action, the UK’s position in climate change mitigation is starting to slip,” the group said on Sunday.
“The recent dilution in government net zero commitments means meeting future targets is an even bigger challenge and creates uncertainty, potentially risking the opportunity for UK businesses to capitalise on green growth.”
Prime minister Rishi Sunak’s government opted to delay the UK’s landmark 2030 ban on petrol and diesel car sales last month by five years to 2035.
A continued commitment to oil and gas through the granting of new licences for exploration in the North Sea has also faced scrutiny.
According to Aviva, some 44% of companies in the UK now have a structured plan to reduce their carbon footprints, up from 34% last year.
Around two-thirds are concerned by the future impacts of climate change, meanwhile, up on 54% in 2022.
“Businesses appear to be responding to increasing pressure from customers [...] to address climate change,” Aviva added, calling on the government to accelerate the UK’s transition to make it “the most climate-ready large economy by 2030”.
The calls come as the government’s North Sea authority on Monday awarded 27 new licences for companies - including Shell PLC (LSE:SHEL, NYSE:SHEL) - to drill for oil and gas off the UK coast.
“The UK is Europe’s second-largest oil and gas producer, and the country’s lack of a policy framework to phase out oil and gas extraction is an area of concern,” Aviva said meanwhile.