Britain can’t just think big on the environment – it needs to expedite the rollout of strategies and delivery of solutions while momentum remains.
A report from CDP reveals a significant gap in corporate action on renewable energy, with only one in 10 companies committing to 100% renewable electricity. This slow progress is a major roadblock to achieving global climate goals. Despite renewable energy being central to many companies’ sustainability strategies, a large number of corporations have yet to transition at the speed and scale needed. The report highlights that large electricity consumers, responsible for the majority of global commercial electricity use, are lagging in their adoption of renewable energy.
While some companies have made notable progress, many others report disappointing figures, with only about a third of their electricity sourced from renewables. The lack of urgency and transparency in renewable energy commitments is a critical issue, and without faster action, the global energy transition risks losing momentum.
The Gap in Business Strategy
The private sector has a pivotal role to play in achieving net zero. And yet, while many UK businesses express confidence in the cost-effectiveness and sustainability of their energy strategies, a “set and forget” mentality threatens the long-term success of these efforts.
Businesses often overestimate their readiness to tackle challenges like energy market volatility and stricter regulations. In fact, in a recent survey we commissioned, findings show that despite 89% of companies feeling prepared for these challenges, only 23% of organisations are confident in managing scope three emissions, a critical aspect of an overall sustainability strategy going forward.
If organisations truly want to make change happen, they need a comprehensive strategy and must be willing to invest in it.
Financial Considerations
A major trend in the survey is that financial considerations often dominate sustainability decisions, with 84% of businesses prioritising cost savings over environmental impact. This focus on short-term financial gains could undermine long-term sustainability efforts.
Businesses need to recognise that sustainability isn’t just about reducing costs; it can be a key driver of commercial success. Ignoring this balance may lead to missed opportunities and a loss of competitive advantage in an increasingly sustainability-driven market.
Investing in these plans now helps protect future business operations. It’s important to work with sustainability experts to understand the specific steps your organisation needs to take, as every business has its own unique needs and challenges.
What Steps Can You Take?
Businesses face several barriers when trying to implement effective sustainability strategies, including financial constraints, lengthy approval processes, and a lack of access to trusted experts. In fact, a concerning 58% of businesses have not consulted specialists to optimise their energy strategies, despite the fact that 76% of those who did saw positive outcomes.
To strengthen sustainability efforts and improve commercial performance, businesses should consider seeking expert advice and improving their internal processes. This will allow business to stay across the latest policy, regulation and technological innovation updates and in doing so avoid potential penalties or related commercial underperformance.
Further, as the race to Net Zero accelerates, leveraging technology will be key for companies to build and maintain commercially successful sustainability strategies. Businesses that use digital platforms to understand ROI and identify clear execution pathways for their energy procurement and renewable energy mix will be best placed to gain a competitive edge.
From Ambition to Action
The Net Zero goals set out by the UK Government are lofty, but for businesses that are ambitious and aware of the commercial advantage that sustainable energy investment can bring, meeting these commitments at an organisational and operational level is entirely achievable.
Now is the time to act. By investing in the right tools and expertise, businesses can meet ESG goals and thrive in an increasingly sustainability-focused market.
Chris Maclean is CEO at True, powered by Open Energy Market, a SaaS platform combining energy procurement, risk management, emissions data analysis and a team of sustainable technology experts.
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