Piyush Singh, Sustainability and Net Zero Consultant at Green Economy, highlights the importance of decarbonisation for businesses of all sizes and shares practical tips—from monitoring energy use and making building improvements, to switching to a sustainability-focused energy provider. These actions are simple to adopt, both at work and at home, helping to save energy, cut costs, and reduce carbon emissions.
By Piyush Singh, Sustainability and Net Zero Consultant
Decarbonisation is a bit of a buzzword at the moment and can feel overwhelming, but the actual meaning is quite simple. Decarbonisation refers to reducing carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions in the atmosphere and the actions carried out to achieve this.
For businesses the activities go beyond environmental responsibility, it’s about enhancing operational efficiency, reducing energy bills, and improving overall profitability.
Although it does feel like a relatively new phenomenon, many businesses are already carrying out activities that are decarbonising. The crossover between operational efficiency and environmental responsibility makes the changes even more accessible, with many requiring little additional effort or expense.
Decarbonisation is important
Decarbonisation is important in fighting climate change and the biggest impact a business can have is through transitioning to low-carbon or zero-carbon operations. Beyond remaining compliant to regulations and avoiding penalties and fines, there are numerous benefits to businesses of prioritising decarbonisation in their operations.
- Cost savings: Implementing energy-efficient methods, such as using heat pumps instead of gas boilers, installing LED lights, and using sensors can significantly reduce energy consumption. Additionally, exploring renewable energy options like Solar PV (Photovoltaic) systems can help generate green energy which can be fed back into the grid. If a business replaces all traditional lighting with LED lights and installs solar panels on its roof, although the initial outlay is costly, this will not only cut down on electricity costs but also generate income from selling surplus energy back to the grid.
- Competitive advantage: Committing to decarbonisation and sustainability can help a business stand out in a competitive market. Companies that adopt environmentally friendly practices are better positioned to meet the increasing demand from customers and partners for sustainable solutions. This not only enhances the company’s reputation but also strengthens brand loyalty among eco-conscious consumers and can attract new customers and partners who prioritise environmental responsibility. Moreover, being recognised as a leader in sustainability can provide a competitive edge, helping to secure contracts with larger organisations that have sustainability criteria for their suppliers.
- Access to capital: Businesses with clear decarbonisation strategies are more attractive to ESG (Environmental, Social, and Governance)-focused investors who prioritise sustainability and ethical practices. These companies are better positioned to access green financing options, such as green bonds, sustainability-linked loans, and green funds. These types of financing are often available at more favourable terms than conventional loans, including lower interest rates, longer repayment periods, or fewer collateral requirements.
- Innovation and growth opportunities: Decarbonisation drives innovation, leading to new products, services, and business models aligned with evolving market demands and with this comes even more opportunities in renewable energy, carbon capture technologies, and circular economy solutions.
Where to start
Focusing on energy-saving actions can provide quick wins that not only reduce carbon footprints but also cut costs. Here are some example activities for businesses to save energy, cut costs, and reduce carbon, and many of these actions can be applied to an individual’s home.
- Conduct an energy audit: Start by identifying inefficiencies and areas for improvement in energy use across all operations. An energy audit provides a detailed assessment of current energy consumption patterns and highlights opportunities for savings.
- Upgrade to LED lighting: If you are still using conventional fluorescent lighting, switching to LED lighting is a simple yet effective step. LED lights are up to 60% more efficient and have a longer lifespan, leading to significant reductions in electricity bills.
- Install sensors: Control lighting use by installing motion sensors, presence sensors, or PIR (Passive Infrared) sensors, which automatically turn lights off when areas are not in use. These sensors can be installed at a low cost (as low as £30 per sensor) and can help significantly reduce energy waste.
- Optimise heating, ventilation, and air conditioning (HVAC) systems: Regular maintenance, such as cleaning and servicing HVAC systems annually (especially before winter), improves their efficiency. Simple measures like isolating radiators not in use and adding controls to gas boilers can also reduce energy consumption. Switching to more efficient systems like heat pumps can provide further savings and reduce reliance on fossil fuels.
- Use renewable energy: Consider installing solar panels or purchasing green energy from suppliers. Solar PV systems generate green energy, reduce dependency on the grid, and offer financial benefits by feeding excess energy back into the grid under schemes like the Smart Export Guarantee (SEG).
- Set efficient temperature points: Research shows that each degree change in heating or cooling settings can impact energy use by 5-8%. Setting optimal temperatures and avoiding unnecessary heating or cooling can lead to significant energy savings.
- Improve building insulation: Enhancing building insulation through measures like double glazing can reduce heating and cooling demands. Better insulation helps maintain a stable indoor temperature, reducing the workload on HVAC systems and lowering energy costs.
- Promote sustainable commuting and remote work: Encourage the use of public transport, carpool, cycle, or work from home where possible. This not only reduces the carbon footprint associated with commuting but also can lower operational costs.
- Implement waste reduction strategies: Minimising waste in production processes and promoting recycling can lower overall emissions and reduce costs related to waste management.
- Look into green tariffs: Consider switching to an energy provider that offers green tariffs that ensures a significant portion of your electricity comes from renewable sources. This can help reduce your company's carbon footprint while supporting the growth of sustainable energy initiatives.
Decarbonisation should start with practical, actionable steps focused on energy efficiency and renewable energy. By focusing on these areas, businesses can achieve meaningful reductions in their carbon footprint while also benefiting from cost savings, enhanced brand value, and risk mitigation. But as with everything, continuous monitoring, reporting, and optimisation are key to ensuring long-term success in the decarbonisation journey.