Are businesses falling short of 2030’s sustainability targets?

The world is on a mission to reach net zero by 2050. However, as part of the Paris Agreement, the UK has also committed to a 68% reduction in emissions by 2030 – just 5 years' time. With this interim deadline looming, we surveyed 500 organisations from a range of energy-intensive sectors across Europe to learn what progress is being made and what problems must still be faced.

We found that energy control is now a fundamental piece of the net zero puzzle. Those with greater control of their energy supply are better positioned to keep sustainability plans moving forward. Whereas more vulnerable businesses are struggling to overcome short-term hurdles and access long-term opportunities. Out of all the organisations we spoke to, a third of businesses say they have no clearly defined path to net zero and are likely to miss their 2030 emissions targets. 

Growing concerns and shifting focus 

Energy matters remain high on the agenda for many businesses. And for good reason. Grid constraints and recent geopolitical events have ensured market uncertainty continues. Meanwhile, the International Energy Agency (IEA) is predicting that electricity consumption is set to soar between now and 2027. Couple this with a growing dependence on the weather to meet supply and demand, and it’s easy to foresee how the strain on the power system is likely to get worse.

Businesses are certainly feeling the pressure, with 30% saying a reliable energy supply is now critical (up from just 17% in 2021) and as many as 44% saying it poses a substantial risk to their organisation. As a result, more businesses are focusing their attention on energy resilience and see energy independence as an opportunity for generating energy and driving growth. 

Barriers to net zero

Despite sustainability becoming the new normal and the appetite for innovation growing, finding a way forward remains challenging. Budget constraints are a key concern, with 46% of business saying it’s one of their biggest obstacles to net zero. In fact, 44% say it’s difficult to make the business case for new energy technology, even if it creates long-term savings. Infrastructure limitations – such as grid capacity constraints – are also a key obstacle for 60% of businesses. Not to mention the fact that energy choices are growing more complicated, with many of the “quick wins” already made and low hanging fruit picked. Instead, businesses are being forced to redefine their way forward in an ever-changing energy labyrinth.

For guidance on how to move to the next strategic phase of your sustainability journey, download our report, ‘Navigating the Energy Labyrinth: Where next for the energy transition?’. Inside you’ll find alternative routes to net zero and practical steps to help you capitalise on market opportunities.