Every business in Britain is facing the same unavoidable challenge. The UK has committed to achieving net zero carbon emissions by 2050 – a target first set by Theresa May’s Conservative government in 2019 and then renewed under Labour.
Businesses make up roughly 19% of the nation’s carbon emissions. However, just 10% of companies worldwide have set targets to achieve 100% renewable energy usage, according to the CDP, a global non-profit that helps companies and public organisations disclose their environmental impact. Companies should be working towards the government-mandated goals now, but navigating a complex energy market is no mean feat, and the challenges just seem to be growing.
For example, AI provides the energy market with a double-edged sword as it will optimise operations and reduce costs, but the computational power required to train and run AI is significant. As its capabilities grow, so does its environmental footprint, and we need to see businesses focus on managing this as they continue to implement the technology across their products and services.
Outside of controlling emissions being the right thing to do for the planet, it also makes good business sense. Whether this is by avoiding fines from regulators for not meeting green energy goals or getting ahead of the competition by adopting a sustainability-first mindset now. It’s time for action – but what’s the first step?
Sourcing renewables
For many organisations, the energy that fuels their operations is something of a black box, with limited visibility of where the power comes from. Without the ability to see how much of their supply is sourced renewably, businesses face challenges in understanding and reporting their renewable usage.
This situation is changing rapidly. Organisations now have access to traceability technology that informs them exactly where their power originates, while also monitoring energy consumption and recording a Carbon Free Energy (CFE) score. The precision of traceability systems enables leaders to take the guesswork out of net zero initiatives. By understanding the granularity of their company’s energy consumption, businesses can reduce the uncertainty about their use of clean, renewable energy and report with confidence.
Sustainability pressures
There is no doubt that sustainability commitments can be a catalyst for change. However, while these measures are clearly well-intentioned, the growing weight of compliance, reporting obligations, and reputational risk has made the path to net zero more complex to navigate. Companies are under pressure to demonstrate measurable progress, yet often lack the resources, clarity, or support to deliver on these demands at pace.
In some sectors, sustainability reporting requirements can consume time and capital that might otherwise be allocated to on-the-ground decarbonisation initiatives. For others, uncertainty about which frameworks to prioritise – and how best to evidence their efforts – creates fear and hesitancy, slowing down action and creating friction.
To maximise the benefits of sustainability objectives, companies should prioritise practical, data-driven strategies that enhance visibility and understanding of their energy supply chains. Embedding this approach into core operations will also be a key enabler of success. Businesses committed to early progress are likely to view reducing their carbon footprint as more than a compliance burden, understanding that it can be a framework for making smarter, more resilient decisions in a changing energy landscape.
Evolving regulations
The shifting landscape of compliance and regulation can also create major hurdles on the road to net zero. As governments and international bodies refine their approaches to climate disclosure, organisations face uncertainty over how to future-proof their strategies. This lack of clarity can hinder investment and lead to decision paralysis.
To move forward, businesses should build agility into their sustainability plans, stay informed through credible sources, invest in robust data infrastructure, and focus on actions that drive genuine emissions reduction regardless of how regulation evolves. Although it is not possible to predict the future of compliance, we know that focusing on ensuring future flexibility will be key to meeting evolving requirements.
Transformation burdens
One of the most significant obstacles to achieving net zero is the sheer scale and speed of infrastructure transformation required. Businesses must shift away from decades-old energy systems while maintaining operational continuity and managing cost.
This often means unpicking entrenched consumption habits and committing budget during periods of economic pressure. To navigate this challenge, organisations should adopt a phased, data-informed approach – starting with energy audits to identify quick wins, then investing strategically in technologies and supply solutions that offer both carbon and cost savings over time.
The obstacles on the road to 2050 may look significant but the message to leaders is clear: overcoming the net zero challenge isn’t about overhauling everything at once, but about building flexibility, resilience and visibility into energy decision-making so that progress remains achievable, even in a volatile environment.
Right now, businesses have time on their side. However, 25 years can pass very quickly. The message to leaders is clear: don’t be nervous about the scale of the challenge. Get started today and you’ll be in a strong position to unlock the benefits of net zero and green energy well before the deadline.
Robert Groves
Robert Groves is CEO at SmartestEnergy. Robert joined SmartestEnergy in 2004 as Vice President of Commercial. He became Chief Operating Officer in 2006 and was ultimately appointed as Chief Executive in 2011. He is responsible for managing SmartestEnergy’s 3.3GW of generation capacity and supplying electricity to large business consumers, driving us forward on our net zero journey.
