Stephen Horrax, Director of Energy for UK & Ireland, Ramboll
Since the Science Based Target initiative was established in 2015, over 10,000 companies around the world have committed to achieving net zero through it.
Of these companies, 71% of non-service sector firms based in the UK pledged to reduce their emissions 40-50% by 2030. With this deadline rapidly approaching, and decarbonisation not keeping pace, this commitment runs the risk of becoming a broken promise. But that raises an important question – what will the material consequences be for businesses who fail to sufficiently reduce their emissions?
On the surface, and in a climate landscape increasingly affected by geopolitical uncertainty, it’s tempting to assume these missed targets can be safely swept under the rug as ambitious but ultimately unachievable. However, real risks remain for companies who miss these targets. Reputational damage, wavering investor confidence, and falling behind greener competitors are all potential dangers that ought to be taken seriously. Most importantly, decarbonisation is an increasingly core element of a company’s resilience, both against the operational vulnerabilities climate change introduces, such as extreme weather and mounting carbon costs, but also against mounting regulatory scrutiny.
It is a misconception that policy is no longer encouraging companies to pursue the energy transition. Instead, government initiatives such as the UK’s Modern Industrial Strategy and the EU’s €1 billion Innovation Fund 25 all offer meaningful incentives and opportunities to facilitate industrial electrification. Disclosure requirements are also more stringent than ever, and a rising number of environmental law firms are finding ways to hold companies to account for arguably inadequate climate action. Companies that don’t take the initiative to achieve net zero now could find themselves under uncomfortable external pressure in the future.
So, what is achievable before 2030? Early efforts to go green may have focused on small-scale, commercially viable changes, such as upgrading lighting, improving HVAC systems, and purchasing renewable energy certificates. Organisations now face a more complex and urgent challenge to meet short-term carbon targets and please investors, regulators, and the public. This will involve decisive systematic transformation and a focus on energy resilience.
Electrifying heat
Where companies have made progress in reducing their emissions, these have primarily been Scope 2 emissions: indirect emissions from purchased energy. The other half of the equation are Scope 1 emissions produced by a company’s own processes, especially those that demand industrial heat such as drying, pasteurising, and chemical transformation. These tend to still rely heavily on fossil fuels, especially natural gas, and until this is remedied, progress on net zero will remain an uphill battle.
In light of this, electrifying heat is crucial and better yet, achievable. The answer lies in industrial heat pumps which are emerging as the most promising low carbon solution for low-temperature (<200°C) processes. Offering three to five times the efficiency of gas boilers, when powered by clean electricity they can eliminate Scope 1 emissions entirely.
This technology is revolutionary – but it cannot be integrated overnight. Delivering an industrial heat pump project can take as long as 2.5 years, an estimate which excludes grid upgrades. Organisations with 2030 targets, therefore, need to act now to assess practical considerations such as viability, costs, and integration pathways. This investment of time, money, and focus will pay off exponentially in the long run.
Systematic solutions
Heat decarbonisation should be the first step on a company’s journey towards a sustainable future. Embedding sustainability demands a systems thinking approach that acknowledges the way in which heat, power, storage, and flexibility exist in an interconnected nexus. Addressing one whilst neglecting another can create more problems than it solves, and a successful energy transition will require considering all dependencies in tandem.
Alongside big picture changes like electrification, companies should not overlook changes to transport fleets, the technical and economical demands on energy networks, and digital opportunities to automate energy flows between energy and storage. Adopting an integrated energy strategy over a project-by-project approach not only increases energy resilience, but also financial viability, proving once again that sustainability is both a business’ responsibility and in its economic interest.
Until now, many companies have measured their advance towards net zero targets in short-term wins and isolated fixes. For companies who want to meet 2030 targets, this piecemeal approach will no longer serve and must be replaced with robust, integrated strategies and coordinated efforts across engineering, finance, procurement, and operations. This is the only way to ensure long-term sustainability and resilient energy systems, as well as to avoid the reputational and financial risks of the alternative.
This article appeared in the May 2026 issue of Energy Manager magazine. Subscribe here.
