As London Climate week came to a close businesses across the world have been told that that the move to net-zero will define the generation.

The comments came as a new global survey found businesses back the transition to a net-zero, nature-positive economy, but few are equipped to manage the social impacts in order to ensure the benefits are shared fairly.

The WWF survey of more than 500 senior leaders from 19 countries  is part of a new report, The Path to Resilience: A people centric transition to a net-zero, nature-positive economy, supported by KPMG International.

Its key findings include:

• 90% of businesses surveyed believe they have a responsibility to limit environmental impact
• 84% agree businesses have a responsibility to tackle climate change
• 74% of respondents believe the transition will contribute positively to national prosperity
• 80% believe that firms have a responsibility to ensure the transition is fair

It added climate and nature risks are already creating physical and operational pressures that businesses need to adapt to, while the transition itself is reshaping workforce dynamics, supply chains and market opportunities. If the social dimensions of that transition aren’t effectively managed, they can risk undermining support for environmental action. Social impacts include workforce transformation, and impacts on suppliers and local communities. A successful transition therefore depends on integrating environmental and social considerations, rather than addressing them in isolation.

Simon Weaver, global head of Sustainability Advisory, KPMG International said: “The transition to a net-zero economy is likely to define our generation, and the decisions we make today have the potential to shape our economy and environment for years to come.

Net zero is already reshaping how businesses operate, accelerated by AI. It brings real opportunity, but without the right approach it will also bring disruption.

That is why we should put people at the centre of the transition. Investing in skills, supporting supply chains and working with communities will not only limit disruption, it can help to build the long-term resilience businesses and economies depend on.”

However, the survey found that approaches to managing the social impacts of transition are still developing, despite growing recognition that workforce, supply chain and community impacts will shape long-term success:

• Only 35% of businesses surveyed say social impacts are significantly or fully integrated into their environmental strategies and transition plans.
• Only 22% say they are taking specific action to manage the social impacts of the transition

“If not addressed, these gaps may risk slowing delivery, disrupting supply chains and weakening public and investor support, making the transition harder to deliver at the pace and scale required,” the WWF added.

Where climate change is already having a major impact on less developed nations/countries, finance is seen as a major barrier to transition. Some 61% of businesses surveyed in Africa cite access to finance as a barrier, compared with 42% in Europe and 40% in North America.

The report highlighted a growing disparity between businesses, with a risk of a two-speed transition. Larger organisations are often further ahead, supported by stronger governance, access to finance and internal capacity, while SMEs and businesses in more constrained markets face greater barriers, leaving some able to move quickly and others at risk of falling behind.

• 31% of SMEs surveyed participate in ESG reporting, compared with 52% of multinationals
• While 40% of businesses have a transition plan and 29% are developing one, only 17% have made those plans public and just 9% say transition principles are embedded across their core business model
• Only 24% of SMEs respondents say governments are supporting them well, compared with 43% of multinationals

“Businesses cannot do this alone,” the WWF added. “Many face barriers related to finance, skills, supplier capacity, and policy uncertainty, and these constraints are not evenly distributed. Governments and financial institutions have a critical role in strengthening the conditions for faster action and ensuring that the costs and benefits of change are shared more fairly.

“Climate action, nature recovery and social outcomes reinforce each other, together shaping resilience for businesses, supply chains, workers, communities and the wider economy.”

What the survey makes clear is that business, government, and the financial sector all have a crucial role to play in building a net-zero, nature-positive economy that is more resilient, inclusive, and better equipped to manage the challenges ahead.

Tanya Steele, chief executive of WWF-UK, said: “The transition to net zero is essential to tackling climate change, protecting our environment, and securing the food system and economy on which we all depend.

Our survey shows the global business community recognises this. They support the transition, understand their responsibility to limit environmental damage, and see the opportunities a fair, nature‑friendly transition brings. However, few are yet equipped to manage the social impacts.

With clearer direction from governments and stronger action from business to put people at the centre, we can deliver a transition that restores nature, strengthens communities and builds a more resilient economy.”