COP27 - R&D providing the momentum towards ‘net-zero’

The most recent UN Convention on Climate Change (COP27) has taken place in a year of severe climate events, conflicts resulting in acute humanitarian suffering and a growing food and energy crisis. Within this maelstrom the world is entering a critical decade with narrowing timeframe for human intervention to preserve a safe climate for our planet. ‘Net zero’ is about our contribution to climate change.

World events are belatedly providing a catalyst to initiatives and developments related to environment, social and governance (ESG) and sustainability. Across UK boardrooms there is a growing need for a Chief Sustainability Officer (CSO) tasked with seeking a transition pathway with the ability to turn climate ambition into climate action.  With more regulation, boards must increasingly consider its company’s ESG impact for every new product, process, or service and often environmental commitments require Research and Development (R&D).

The UK is the first major economy to legislate for net-zero meaning that greenhouse gas emissions added to the atmosphere are balanced with those extracted “… (the UK) will fulfil our ambitious commitment to reduce emissions by 68% by 2030” - Rishi Sunak.

Net-zero is not just confined to the energy and renewables sector but means a broad reduction across the entire economy, including sectors such as construction and manufacturing. R&D is at the forefront of this environment strategy and through innovation and technology the UK may become more sustainable whilst creating jobs and boosting economic growth.

Government incentives through the Corporation Tax system have the power to transform a business and reward projects which actively seek to contribute to our net-zero goals. Environment considerations add complexity to a broad range of projects which may qualify for R&D tax incentives. R&D is central to fulfilling our net-zero ambitions and, Corporate Officers of companies innovating with products, materials and processes to make them greener and more sustainable, should contact ThirdRock to explore this valuable source of funding.