Forty percent of finance heads deem the move to a low-carbon economy as “not relevant” to their business, according to in depth interviews with finance directors and chief financial officers at 200 UK firms employing more than 500 people. Another 43% identify the transition as an opportunity and 18% see it as a threat.

The view that the low-carbon switch is irrelevant is most pronounced in the finance and professional services sectors, with respectively 52% and 59% of finance directors unconcerned.

Finance professionals at tech firms are the most optimistic and clued up, with 88% seeing the low-carbon economy as an opportunity, with the remaining 12% equally divided between seeing it as a threat and irrelevant.

Meanwhile, more than one in four finance heads are not sure whether their firm is prepared for the switch to a low-carbon economy.

“I’m not surprised that finance directors are struggling with this issue,” said Rachel Sinha, sustainability manager at the Institute of Chartered Accountants in England and Wales (ICAEW). “A lot of finance directors are really not up to speed on this and that’s come out in the survey."

Expectations for the role of a finance director or chief financial officer have shifted, she noted. “Traditionally their brief has been very narrow; profitability and the viability of a company.”

The survey, carried out by agency brands2life on behalf of the Carbon Trust, found only 26% of firms already measure their carbon footprint, but 41% of finance directors expect to measure and report their footprint within their annual report in the next five years.

Only 13% of finance heads said their business has a publicly disclosed carbon reduction target. A further 24% have an internal target, while 64% either do not have a target, or aren’t sure if one exists.

However, the economic climate may partially explain this, said Martin Lloyd, head of information management at UK pharmacy chain Boots. “It may be that finance is focusing on the short-term needs of the business.”

Finance heads at 72% of large UK businesses believe carbon reporting will in future become mandatory for all UK firms – however, only 15% believe this will happen within five years and the most popular view (at 32%) is that it will take more than 10 years.

Expectations are also strong that all UK firms, including small businesses, will eventually have to pay for the carbon they emit - only 19% of finance directors do not believe carbon pricing will be extended to the whole economy.

“The debate about whether or not carbon footprinting and payment will become mandatory for business appears to be over as far as finance heads are concerned. Yet only a minority have taken action so far and these early movers have a clear advantage,” said Harry Morrison, general manager of the Carbon Trust Standard Company, which offers an independent certification that organisations are measuring, managing and reducing their carbon emissions.

Just under half of finance directors do feel prepared for the switch to a low-carbon economy, according to the survey. However, Ben Wielgus, a sustainability advisor at accountancy firm KMPG, argued this could be misleading, noting the scale of carbon reductions required. The UK is aiming to reduce its greenhouse gas emissions 80% by 2050 from 1990 levels, he noted. “People know this is coming, but they don’t really know what it is,” he added. “I think it’s amazing that 10% of people think we are already there.”

Jess McCabe