Andrew King is the founder of SGT, a Buckinghamshire-based firm helping businesses across the UK find commercial energy tariffs that meet their needs while keeping costs low. In this article Andrew explores how businesses can cut energy costs while also cutting down their carbon emissions.
Let me tell you a story about John, the owner of a mid-sized company, it might save you a load of money, it might not. He felt like he was stuck in a race he never signed up for. On one side, rising energy bills were eating into his profits. On the other, his company’s carbon footprint was under scrutiny. John thought these were opposing goals – like trying to win two races at once. Then he discovered a surprising truth: cutting energy costs and cutting emissions can be the same race, and if you run it right, you win both.
The Race to Net Zero (and Why Everyone’s Running)
Across the business world, the starting gun has fired on the ‘race to net zero’. In simple terms, ‘net zero’ means reducing your greenhouse gas emissions as much as possible and offsetting the rest, so you’re adding virtually no new emissions to the atmosphere. It’s not just a feel-good slogan; it’s quickly becoming a business standard. In fact, according to Net Zero Tracker, 65% of the world’s biggest companies have set net-zero targets – they know that wasting energy is like running with a weight on your back, slowing you down with higher costs and unnecessary pollution.
The great news is that every business, from a two-person startup to a global corporation, can take steps to run lighter and smarter. And unlike a typical race, in this one, everyone can win – lower bills, lower emissions, and a competitive edge.
Story: The Small Business That Could
Meet GreenTech Electronics*, a small manufacturing company with 50 employees. GreenTech was struggling with monthly electricity bills of around £10,000. Their workshop was lit with old fluorescent tubes, machines were left idling during lunch and the heating system needed an upgrade. After a particularly eye-popping power bill one winter, the owner, Alice, decided enough was enough. She set out on a mission to trim costs that would also shrink the company’s carbon footprint – a mini ‘race to net zero’ of her own.
Alice started with an energy audit and discovered several quick fixes. The company swapped out those buzzing fluorescent lights for modern LED lightbulbs and installed motion sensors in storage areas so lights didn’t stay on all night. The difference in brightness was literally night and day – for a fraction of the energy. Next, Alice encouraged a bit of friendly competition among staff to see who could come up with the best energy-saving idea each month. Employees got on board by powering down equipment when not in use.
Even simple changes like upgrading lighting from old incandescent bulbs to efficient LEDs can make a huge difference in energy use. These upgrades might sound small, but together they made a big dent in GreenTech’s power bill. Within a year, GreenTech Electronics cut its electricity bill by 20% – saving about £2,000 a month – and reduced its carbon emissions significantly. The best part: those savings went straight back into the business, funding new product development. The team also took pride in their greener workplace, impressing eco-conscious clients. GreenTech’s story shows that no business is too small to start winning at this game.
Story: The Corporate Giant’s Green Overhaul
Consider GlobalManufacture Corp*, a large corporation with facilities worldwide. It had huge energy use across sites and a public pledge to slash emissions 50% in five years. The CFO, Ravi, realised that smarter energy use could be their secret weapon to meet those climate goals and save money – but changes had to happen at scale.
Ravi’s team started by analysing energy data from all ten of their major facilities. The numbers were startling – millions of pounds spent on electricity and gas each year. They identified the ‘low-hanging fruit’ first: upgrading to high-efficiency machines, improving insulation, and retraining facility managers on optimal settings. One factory modernised its cooling system and adjusted production schedules to avoid running heavy machines during peak hours, while one office installed smart thermostats and a nightly ‘all-off’ policy for equipment.
But GlobalManufacture didn’t stop at internal improvements. Ravi negotiated contracts to buy wind and solar power for their operations and installed solar panels on some rooftops and car parks to generate power on-site.
Many businesses, large and small, are installing solar panels to generate clean electricity and cut down on energy bills. In doing so, GlobalManufacture not only slashed its carbon emissions further but also shielded itself from future energy price hikes.
Over three years, GlobalManufacture Corp slashed its overall energy consumption by 15%, saving several million pounds annually. This manufacturing giant proved that even for large corporations, ambitious green targets and profit can go hand-in-hand.
Practical Steps to Reduce Energy Costs and Emissions
By now, it’s clear that whether you’re running an SME or a multinational, saving energy equals saving money (and emissions). Ready to take action? Here are some practical steps any business can take to start winning the race:
- Get an Energy Audit: Identify where your energy goes each day. You might find machinery running overnight or old equipment wasting power. An audit shows you quick wins.
- Efficiency Upgrades: Replace old light bulbs with LED lighting, upgrade outdated heating or cooling systems, and choose energy-efficient models when buying new equipment. These upgrades often pay for themselves through lower bills.
- Optimise Operations: Encourage a culture of turning off and unplugging. Set computers to sleep when idle, use timers or smart plugs for equipment. Ensure lights and heating/cooling are off after hours. Small behavioural changes can add up quickly.
- Smart Scheduling: Run energy-intensive tasks (like heavy manufacturing or charging fleet vehicles) during off-peak hours when electricity rates are cheaper and sometimes greener. This smooths out demand and lowers costs.
- Renewable Energy and Smart Procurement: Consider generating your own clean energy, such as solar panels on the roof, or switch to a supplier that provides green energy at competitive rates. Shop around for energy contracts – sustainable options can sometimes be cheaper long-term.
- Monitor and Share Progress: Use smart meters or energy management software to track usage. Share the progress with your team – it keeps everyone motivated when they see the savings grow – in pounds saved and emissions reduced.
These steps not only cut down your utility bills but also shrink your carbon footprint. Remember, studies show small businesses can reduce utility costs by around 10–30% through energy efficiency – that’s money straight back into your business. Big firms often save even more in absolute terms because of their scale.
Conclusion: Ready, Set, Go Green!
The finish line in the race to net zero is not a trophy – it’s a stronger bottom line and a healthier planet. The stories of GreenTech and GlobalManufacture prove that no matter your size, you can make a difference by working smarter, not harder.
In today’s world, sustainability and profitability go hand in hand. Businesses that embrace this find themselves innovating, saving money, and earning respect from customers who appreciate eco-friendly partners. The race to net zero is on, and the sooner you start, the more you stand to gain.