A significant 85 percent of UK businesses report confidence in the cost-effectiveness, reliability, and environmental sustainability of their energy strategies, according to research conducted by True, powered by Open Energy Market. The findings, detailed in a new whitepaper, ‘Mind The Gap: From Ambition To Action’, explore the commercial imperatives driving energy procurement and sustainability strategies among UK businesses.
While many organisations report high confidence in their current strategies, underlying challenges threaten to undermine these efforts, exposing a risky “set and forget” mentality that could have significant implications for hindering commercial benefits as well as the future of the UK’s sustainability efforts.
Almost all UK businesses (89 percent) believe they are prepared to tackle challenges such as energy market volatility and tighter environmental regulations within the next 12 months.
Despite this reported confidence, there is a concern that businesses may be overestimating their readiness, leading to complacency and missed opportunities for optimisation. For example, this overconfidence is contrasted by the finding that just under one quarter (23 percent) of organisations feel confident in understanding and managing scope three emissions, a critical area for achieving comprehensive sustainability.
The undeniable reality is that both finance and sustainability leaders overwhelmingly prioritise cost savings when developing their sustainability strategies, with the majority (84 percent) of organisations favouring financial considerations over environmental impact.
Chris Maclean, CEO, True, powered by Open Energy Market, comments: “This shouldn’t be about competing priorities; it’s about recognising that sustainability can drive commercial benefits. Businesses need to shift their perspective to see sustainability as a pathway to commercial gain, or they risk losing competitive advantage, missing out on tenders, and falling behind in an evolving market landscape where sustainability is increasingly tied to business success”.
Plus, businesses report common challenges for implementing sustainable energy practices. These include financial constraints (26 percent), followed by lengthy approval processes (25 percent), and limited access to trusted specialist consultancies (23 percent). These obstacles underscore the need for streamlined processes and better access to expertise to drive effective sustainability initiatives that enhance commercial performance.
Significantly, over half (58 percent) of organisations have not engaged specialist consultants to optimise their energy mixes, despite more than three quarters (76 percent) of those that have reporting positive outcomes. This highlights an untapped opportunity for businesses to enhance their energy strategies by leveraging expertise.
From a strategic standpoint, the survey reveals a complex landscape of decision-making authority over sustainable energy strategies. While CFOs slightly edge out Heads of Sustainability as the final sign-off authority (28 percent versus 24 percent), the perception of who holds this responsibility varies significantly depending on who you ask. CFOs are more likely to claim this primary role for themselves (43% compared to sustainability officers 13% attribution), while Heads of Sustainability are seen as decision-makers by nearly twice as many sustainability officers (31 percent) than by CFOs (16 percent).
Still, over half of UK organisations (55 percent) report a 4-6-month timeline for signing off energy and sustainability projects, with 22 percent taking 7-9 months. Lengthy approval processes may hinder timely implementation of crucial initiatives.
Moreover, the research reveals limited evaluation methods for sustainable energy transition action plans. Only one fifth (20 percent) of organisations track and analyse energy consumption data, and similarly few review compliance with environmental regulations (20 percent) or monitor cost savings using technology (19 percent).
True provides a comprehensive solution to these challenges. By unifying energy procurement and net zero strategies in one platform, True empowers businesses to make data-driven decisions and build stronger financial grade business cases for their sustainability initiatives.
Chris Maclean adds: “There is a startling paradox within UK businesses: high confidence in energy strategies coexists with significant gaps that need urgent attention. While many feel prepared for market challenges, the reality is that navigating the complexities of the energy landscape requires more than just confidence and ambition – it requires action. Businesses need to actively engage with specialists and adopt robust evaluation methods to optimise their energy and sustainability strategies effectively. By taking these steps, companies can not only address the gaps but carve a commercially competitive path to net zero, ensuring they are resilient, compliant, and truly sustainable in the long term.”
For more information and to access the full whitepaper report, ‘Mind The Gap: From Ambition To Action’, visit https://truezero.tech/mind-the-gap
