The government’s move to delay key green targets has caused a ripple of uncertainty amongst businesses and investors in the UK. Clarity and confidence in the UK’s plan to achieve Net Zero is low, and commitment to providing solutions and initiatives that can get us there do not seem to be forthcoming from the government.
WANING SUPPORT
Over the past few years, the government has offered businesses hugely valuable support, which has been instrumental in ensuring survival through the economic uncertainty caused by Brexit and the pandemic. However, there has been a continued tapering of this support, and it’s clear that businesses can no longer solely rely on government interventions to address energy cost concerns. It is now more critical than ever for businesses to proactively manage their energy mix and costs. This will ensure the UK is able to continue to decarbonise and achieve its Net Zero goals. It’s a necessity for businesses to future-proof themselves against a creaking energy system in the UK which comes under increasing pressure as energy demand increases.
FOSTERING GREEN INITIATIVES FROM WITHIN
One of the primary reasons many businesses hesitate when investing in sustainability projects is the uncertainty over financial risks. To overcome this and ensure decision-makers feel confident when investing in sustainability projects, a strong business case is necessary. This involves auditing the business’ current energy use is crucial to evaluate which green projects are suitable and to identify areas where savings can be made. Examining the current energy mix may reveal immediate opportunities for achieving Net Zero commitments.
For instance, Goodwin Metal Manufacturing partnered with True to reduce costs and carbon emissions, leading to significant savings. Within seven weeks, True identified new carbon reduction opportunities and cost reduction strategies, enabling Goodwin to benefit from tax exemptions on electricity bills, resulting in savings of over £1.2 million.
By evaluating the current energy usage of your business with the support of specialist experts and data-driven insights, you may be able to make important cost savings which can fund sustainability projects.
DEMONSTRATING FINANCIAL RETURNS
A strong business case will also demonstrate the financial viability of decarbonisation energy schemes, aiding decision-makers in understanding potential returns and making informed choices aligned with long-term goals. Engaging with carbon consultancies can help in accurately calculating ROI, offering strategic methods to evaluate carbon footprints, identify emission sources, and construct comprehensive decarbonisation approaches. These consultancies provide precise data and insights to support well-informed investments in Net Zero initiatives.
There are various options for procuring clean energy. Platforms like True utilize a business’ data and insights to model the financial and carbon impact of energy procurement decisions over different timeframes. These insights assist decision-makers in understanding whether power purchase agreements, leasing, or owning renewable infrastructure is the best choice.
This data-driven approach empowers informed decision-making, aligning sustainability strategies with financial capabilities and appealing to eco-conscious investors.
MAKING THE CHANGE
The simultaneous pursuit of greener and cheaper energy sources, facilitated by energy procurement strategies, accurate financial modelling, and Net Zero technologies, can drive long-term success economically and environmentally.
To ensure the UK’s continued leadership in sustainability growth, clear policies and commitments from the government are essential. However, promoting proactivity among businesses in managing their Net Zero initiatives and energy choices is equally crucial.
The bottom line is that businesses cannot rely on the UK government to address the climate crisis and support sustainable business growth. It's up to all of us to make the change.