Decarbonising the private sector is vital to achieve our net zero targets and ensure our energy security. The pace and scale at which we need to do this is a major challenge. Particularly when businesses of all sizes are facing significant obstacles, some unique to their sector.
We recently held a networking event in London. It was the second in a series of events aimed at building relationships with stakeholders and creating opportunities for collaboration.
Jenny Jarvis, Chief Operating Officer and Tim Anderson, Relationship Management Director, both from Energy Saving Trust hosted insightful conversations and panels with our speakers:
Jenny and Ben discussed the Government’s ambition to electrify, which will increase demand and make the need for a lower-cost energy system even more critical. The government has already spent £40 billion responding to the energy crisis, and achieving net zero remains a significant challenge.
As a new entity, Clean Power aims to swiftly engage with the energy system through various ongoing projects, emphasising the need for rapid action.
The panel brought together diverse perspectives from small businesses, large corporations, and the finance sector, all of which are each on their own journey to net zero.
Small businesses have faced considerable struggles in recent years, grappling with limited financial resources, the impacts of COVID-19 and rising fuel prices. Larger companies encounter numerous decarbonisation barriers, including:
skill gaps
energy and infrastructure challenges
regulatory hurdles
investment crowding
international market issues
Meanwhile, the financial sector has seen a notable shift from superficial decarbonisation efforts to a genuine commitment to meeting net zero targets. This is driven by the urgency and importance of these goals. Financial institutions are now navigating challenges such as risk-return considerations and economic uncertainties.
Motivations and challenges
The discussion touched on the motivating factors driving different companies towards net zero. Financial institutions are motivated by industry-wide efforts. Both large and small businesses are primarily motivated by profit.
For large corporations, having a credible climate policy enhances their investability, while regulations need to be outcome-focused to drive change. Meanwhile, small businesses need to demonstrate a clear return on investment and are keen to utilise available loans to achieve this.
Consumer power and sector alignment
The power of the consumer was a key point of discussion, emphasising the role of the community in encouraging the financial sector to make sustainable investments. Transparency from financial institutions about their actions and investment choices is crucial.
When addressing the challenge of achieving alignment across different sectors, the panel acknowledged that each company faces unique challenges on the path to net zero.
Complete alignment is unrealistic, but support among organisations is essential. While the similarities between companies may not always be apparent, their strategies should be clear and straightforward.
Given that different industries are at various stages of their net zero journeys, initiating these conversations now is vital.
Data and collaboration
The discussion highlighted data as a positive tool rather than a barrier in the journey to net zero. Companies can use data to justify and enhance existing strategies, making informed decisions based on available information.
The panel highlighted the importance of sharing successful strategies through case studies, letting businesses learn from each other. Embracing effective practices and fostering collaboration over competition is key to achieving their goals more quickly.
Looking ahead
The discussion concluded with a forward-looking perspective, viewing 2030 as a milestone on a longer journey towards 2050. Continuous implementation and development of learned practices and strategies are essential.
Mike Thornton, concluding the event, emphasised:
“Many solutions to the problems we face already exist and are working elsewhere. All institutions want is certainty about what they need to do to achieve net zero.”
This event shed light on the multifaceted challenges and motivations across different sectors, highlighting the critical need for collaboration and transparency in the journey towards a sustainable future.
We’ll be hosting a series of stakeholder events over the coming year. If you’re interested in attending please get in touch with us at events@est.org.uk.
