The month in review – May 2026

Policy update

Business case for climate action

On 20 May we attended the launch of the Climate Change Committee’s new report, A Well-Adapted UK which outlines key findings on the UK’s preparedness for climate change and sets out recommendations for government. Aldersgate Group’s Head of External Affairs Tom Fewins shared a reactive quote to the publication, which can be read in full here.

Aldersgate Group’s Head of Policy, Beth Barker, supported the launch event for the new report, “Catalysing Climate Resilience: An analysis of the UK’s strengths in the innovation of adaptation technologies and services.” Produced by the Grantham Research Institute on Climate Change and the Environment and the Centre for Economic Transition Expertise, the report provides an important perspective on the economic opportunity for the UK to lead in adaptation technologies and services. Beth spoke on the panel discussion, highlighting the action already being taken by businesses and the role that government policy and industrial strategy can play in supporting the innovation and scale-up of adaptation technologies, services and infrastructure.

Alongside several Aldersgate Group member companies, our Executive Director Rachel Solomon Williams joined the first meeting of the new Sector Transition Plan working group of the Net Zero Council, co-chaired by Chris Skidmore and Ed Lockhart. This took place on 15 May and transfers work that had already been started under the Transition Finance Council.

Net Zero and Nature Positive case studies

With members’ support, we are now drafting case studies of where national policies relating to net zero and nature restoration have helped to revive local economies and restore communities.

These case studies will offer bold, evidence-based demonstrations of how the climate and nature transition is benefitting people, communities, and businesses across the country now and changing the UK for the better. We hope they will allow us to build a story we can use to raise awareness, stimulate engagement and secure support from policy makers.

Water

This month we met the Defra Deputy Director for Water and Head of Water Strategy to discuss water system reform. Aldersgate Group shared our current priorities and policy recommendations. We have also had several discussions with the Environment Agency.

Enabling private sector action on nature

On 22 May, Rachel Solomon Williams attended a roundtable conversation between FTSE 350 Chairs and His Majesty the King to discuss the role that businesses can play in driving nature restoration. The Aldersgate Group team worked with the Green Finance Institute and Institute of Environment and Sustainability Professionals to prepare materials accompanying the event. Companies had a range of innovative proposals about how to accelerate progress. You can read more about the roundtable here.

Aldersgate Group and ISEP will soon publish an accompanying practical guide to support business in integrating nature positive actions into their operations. We are launching this with a webinar, Placing Nature on the Board Agenda on Monday 15 June, 11:30am-12.30pm. We will delve into the report’s findings and then explore the topic from a cross-economy perspective, demonstrating how supporting nature can unlock economic growth, strengthen resilience, and reduce risk. Further details and a link to register can be found here.

Aldersgate Group supported the launch of a new report from the Nature Friendly Farming Network, The Nature of Business, on 18 May. Rachel Solomon Williams provided a foreword to the report, which sets out the benefits to businesses of an ambitious transition to nature-friendly farming, and aligns with our own work in the area.

Green Finance

We submitted evidence to the Environmental Audit Committee’s inquiry into HM Treasury and the economics of climate and nature. Our response highlighted the importance of integrating climate and environmental considerations into economic policy and the economic and national security risks of not doing so. Greater treasury transparency, cross-government coordination and long-term policy certainty were identified as key recommendations for encouraging private sector investment in climate and nature issues.

Energy

On 20 May, Rachel Solomon Williams attended a senior roundtable on electrification, hosted by EDF and attended by representatives from No10, HM Treasury and DESNZ. Rachel made the case for clear and urgent signalling from the government about the pathway for driving demand for electric technologies across consumer and industry end uses.

Decarbonising heavy goods vehicles

We are developing a policy brief setting out recommendations for a comprehensive package of policies to enable the decarbonisation of HGVs. We recognise the need for a clear strategy that defines the roles of low-carbon fuels, enabling infrastructure, and policy levers to drive both manufacturer and operator investment.

Industrial Strategy

We contributed, through both a written submission and interview, to a forthcoming UK Parliament POSTnote on supply chains for energy infrastructure. The discussion explored the technologies, infrastructure and supply chains needed to support the low-carbon energy transition, including grid expansion, energy storage and critical minerals. We discussed the risks associated with current energy supply chains, alongside the UK’s opportunities to strengthen domestic capabilities, manufacturing capacity and supply chain resilience in support of energy security and economic growth. The POSTnote is expected to be published in July 2026.

Industrial decarbonisation

Beth joined Electrify Industry’s workshop, attended by senior policymakers, regulators, energy system stakeholders and industrial energy users, to explore how industrial electrification can be accelerated in practice. The discussion focused on electricity costs, grid connections, flexibility and storage, skills and jobs, and UK supply chains. The insights gathered will help inform policy development on targeted electrification support for industry and the role of complementary policies in enabling industrial decarbonisation.

The government has published its response to the consultation on a policy framework to grow the market for low-carbon industrial products, announcing a number of specific decisions regarding the framework, product classifications and emissions reporting. It confirmed it will publish voluntary guidance as two separate documents: one for buyers and one for producers. DESNZ has also worked with Defra to incorporate voluntary low carbon procurement requirements into planned updates to the Government Buying Standards for Buildings.

Overall, the direction of travel is aligned with the Aldersgate Group’s policy positions, as laid out in our consultation response and recent report on low carbon public procurement. However, the measures remain largely voluntary, and our recommendations go further. In particular, we have called for a stronger strategic use of public procurement as an industrial policy tool to support UK competitiveness, investment and decarbonisation, alongside a long-term move towards mandatory whole-life carbon assessments, progressive embodied carbon limits for major public projects, and greater alignment between the Industrial Strategy and the forthcoming Industrial Decarbonisation Plan.

Trade

In May, the policy team engaged with the Investment Reform team within DESNZ’s International Trade team. This involved a survey on the UK’s participation in the Energy Charter Treaty and sought views on Investor-State Dispute Settlement’s more broadly. While we canvassed a select group of members for their views, there were no strong perspectives from the membership. We flagged this in our response. We have offered to engage on future work in this area once it is more developed.

Circular Economy

The Aldersgate Group supported a letter to Emma Reynolds urging the government to publish its long-delayed Circular Economy Growth Plan. The initiative, led by Green Alliance, sought to highlight the importance of the forthcoming Growth Plan in accelerating progress towards a more resilient and resource-efficient economy. Rachel said: “The continued delay to the Circular Economy Growth Plan is creating real uncertainty for business. We need a clear, cross-government, long-term approach that provides policy certainty, supports resilience and enables investment. This is particularly important as the UK seeks to reset its relationship with the EU: policy divergence can create substantial practical and economic challenges for business.”

AG Insights