Achieving net zero can be a daunting and confusing journey. Timothy Holman, Head of Consultancy at TEAM Energy, outlines how getting the basics of energy efficiency right can help reduce emissions and support the bottom line.
Organisations in the UK face growing pressure to meet net zero targets. Only a relative few have dedicated sustainability professionals, with emissions reductions being tagged on to the job description of energy, facilities, or other managers. As a result, many organisations aren’t clear on what’s required for net zero and mistakenly believe they can simply offset their emissions.
This common misunderstanding isn’t aligned with guidance from bodies like the Science Based Targets Initiative (SBTi) which require organisations to first reduce at least 90% of their emissions, then only offset the last 10% to reach net zero. Reaching the 90% reduction can be daunting and expensive, though. Solutions such as user-owned renewable generation require a lot of capital upfront, expert knowledge, and for some organisations they don’t payback their costs fast enough.
Energy efficiency, however, has some of the greatest potential to make the biggest impact on organisations’ emissions, energy use, and costs in the shortest amount of time.
Energy efficiency basics
According to the International Energy Authority (IEA), over the last two decades, global energy efficiency measures have halved the amount of carbon emissions that would have otherwise been released due to population and income growth. Between 2000 and 2022 alone, energy efficiency measures have helped reduce the energy intensity in buildings and transport by 35% globally.
Increasing the energy efficiency of your organisation begins with an energy and site audit. Understanding your buildings, assets, and energy usage will help baseline your starting position. From here you can set out a longer-term strategy, alongside the practical improvements to realise that strategy.
Many organisations haven’t done the basics of energy efficiency improvements, which means each one has a wealth of untapped potential for carbon reductions and energy savings. For example, upgrading to energy efficient lighting systems, adjusting HVAC tolerances, or improving insulation can make a substantial difference for many organisations.
Crucially, for larger organisations in the UK, an audit and action plan can contribute to your legally required Energy Savings Opportunity Scheme (ESOS) reporting too. This will prevent your organisation falling short at the eleventh hour and will ensure that you benefit from your energy efficiency measures sooner rather than later.
Reducing your emissions
Energy efficiency will reduce your emissions directly and decrease the amount of greenhouse gases (GHGs) you must offset if you are trying to achieve net zero or be carbon neutral. For example, after auditing a campus of buildings and implementing new efficiency measures, such as widening the temperature range of your office spaces, your overall energy use will decrease and bring down your emissions. This means when it comes to offsetting there is less to offset, which comes with cost-savings benefits too.
Decreasing your overall emissions is a net benefit to both your organisation and stakeholders. The whole of society is invested in the total reduction of carbon emissions, and you are playing an integral part in reducing total emissions for everyone with energy efficiency measures. This isn’t just the right thing to do, it’s also proof that your organisation is helping society at large.
The financial benefits of energy efficiency
Energy efficiency is financially beneficial, and we can’t lose sight of that when talking about net zero and sustainability.
Energy costs can be high, especially in uncertain times when prices are volatile. Efficiency measures can counteract this by reducing the amount of energy that your organisation unintentionally wastes. For example, by investing in insulation in your buildings, you can quite literally stop energy leaking through poor thermal barriers. Your efficiency audit will help identify these areas and stop you wasting potentially large sums of money.
The same measures will also reduce the energy intensity of your operations, letting you carry out the same tasks and functions using less energy. This is the foundation of energy efficiency and has long been a key metric for operational improvement. By improving your organisation’s efficiency, you can do more with the same kilowatt hour.
In a competitive climate, this ability to effectively increase your output without increasing energy consumption allows your organisation to be more flexible with pricing too. In some sectors, the relationship between energy used and the product or commodity created is more direct. However, even in service sectors, prices can become more competitive when operational costs reduce. Combining this with your organisation’s emissions reductions creates a compelling differentiator for price-conscious and environmentally conscious customers.
As mentioned above, efficiency reduces the amount of emissions you must offset, which has substantial cost savings features. Organisations aiming for net zero must meet the 90% goal, but others striving for the interim goal of becoming carbon neutral may find energy efficiency to be cheaper than purchasing carbon credits to offset your emissions.
Starting on the basics
The speed of change required for net zero may leave you dizzy. But focusing on the basics of energy efficiency is a practical way to make headway to reaching your emissions and energy savings goals. In the process it will reduce your energy bills and make your net zero transition more cost-effective. Get in touch with TEAM Energy to start auditing your estate and realising your efficiency goals.
