Businesses Retreat from Net Zero Commitments in 2025

The trend of businesses retreating from net zero commitments has gained alarming momentum, particularly since Donald Trump's return to the White House, which has emboldened the fossil fuel industry. Major companies have begun to prioritize shareholder returns over climate action, with notable retreats from net zero pledges occurring in various sectors.

In the UK, political shifts, especially the rise of Nigel Farage's Reform UK, have fractured the consensus that previously supported ambitious climate goals. For example, Conservative leader Kemi Badenoch has officially abandoned the net zero by 2050 target, while Labour has found itself defending its climate policies.

In the automotive sector, carmakers like Ford have announced significant write-downs and have scrapped several electric vehicle models, largely due to disappointing sales growth. Meanwhile, the UK government has eased its zero-emission vehicle mandates, allowing more hybrid sales.

In aviation, both Airbus and Boeing are sticking with traditional gas turbine engines, with Airbus delaying its plans for a zero-emission aircraft. The energy sector also reflects this trend, as companies like BP and Shell have shifted focus back to oil and gas production, with BP's leadership recently changing after disillusionment with green strategies.

The financial sector has seen a significant retreat as well, with major banks like JP Morgan and Goldman Sachs exiting the Net-Zero Banking Alliance amid political pressures. Retailers are also scaling back their net zero ambitions, with Morrisons delaying its target by 15 years.

Local authorities, previously leaders in climate initiatives, are also rolling back commitments, particularly in areas controlled by the Reform party, which threatens renewable projects and climate emergency declarations.

This retreat from net zero commitments across various sectors raises significant concerns about the future of climate action and sustainability efforts globally.