Defining net zero businesses
Statistics about the sector(s) that UK companies are within are based on the Standard Industrial Classification (SIC). However, for net zero and similar sectors this can be problematic. The same SIC code can contain both net zero and non net zero focused businesses. Part of the reason for this is that the SIC classification has not been updated since 2007.
The ONS produces an annual estimate of the number of businesses that are part of the UK's low carbon and renewable energy economy (LCREE). This is based on responses to a survey of companies. Those reporting activity in one or more of 17 defined sectors are considered part of the LCREE. The dataset is currently released about 14 months after the year that the statistics relate to. A one-off ONS release provided estimates of the size of the LCREE in the nine broad English regions in 2020 but this has not been repeated. Therefore, most of the data on this page is a snapshot from a commercial data platform, the Data City.
Rather than being based on survey responses, the Data City platform uses website text and machine learning to classify companies by what they do. The platform uses Real-Time Industrial Classifications (RTICs) to summarise sectors rather than SIC codes, although data for the latter are also included. A business can be classified within more than one RTIC and sub-categories of RTICs are also used, known as RTIC verticals.
Data City local employment estimates for RTICs are not as accurate as business counts. This is because many businesses have sites in more than one area but employment data is usually provided at company level. Site employment totals are therefore estimated by dividing total employment by the total number of sites.