Your energy transition journey

There’s no doubt that sustainability is high on the business agenda. Driven by ambitious national and international targets, greater consumer awareness and the rapid development of new technologies, companies of all sizes are looking to reduce their environmental impact.

One of the biggest changes any business can make is to transition to a clean energy strategy. At Shell Energy, we can support organisations on their journey to affordable, clean and simple renewable energy solutions from a world-class energy partner.

Have you started your energy transition? Read on to gain a better understanding of energy transition in the UK and how you can achieve it.

When the UK set a target in 2019 to bring all greenhouse gas emissions to net zero by 2050, it was the first major economy in the world to do so. To achieve the target will require significant changes, but progress is already being made.

The UK’s own energy transition from fossil fuels to lower carbon technologies is driving this progress. In 2020, 42% of the UK’s electricity came from renewable sources such as solar, wind and wave, compared with 41% generated from gas and coal plants combined*. This is the first time that renewable energy outperformed fossil fuels in the UK.

The UK is ranked seventh in the World Economic Forum Energy Transition Index 2020**, which benchmarks countries on the performance of their energy system, as well as their readiness for transition to a secure, sustainable, affordable and reliable future energy system.

However, if we are to achieve net zero by 2050, it is vital that businesses are also making their own energy transition journey.

With this in mind, many firms are taking steps to make the transition to a clean energy company as part of their overall sustainability strategy.

We commissioned a survey*** that shows that 36% of businesses already purchase renewable energy and another 30% plan to do so in the future. Switching to renewable energy is recognised as one of the quickest and most effective ways for a company to cut its carbon footprint. And as the focus continues on sustainable performance, the intention from UK companies is clear:

• 59% of UK businesses say they have plans to implement sustainability measures and become net zero (Shell Energy research)

• 88% of large businesses (with over 250 employees) have plans to increase their sustainability measures (Shell Energy research)

• Seven in ten UK organisations have made a formal net zero commitment or are planning to do so (BSI)

• 46% of industrial and commercial businesses are planning to invest in renewable generation, higher than any other technology (PwC)

Progressing on your energy transition journey with cleaner energy solutions, and a proactive approach to energy management, is much more than a box ticking exercise. In fact, it can deliver significant benefits to businesses across all sectors – and you don’t have to be a super user to take advantage.

Mid-market energy users (those that spend between £50,000 and £10 million a year on business energy) are well placed to unlock a long list of benefits, in addition to supporting the UK’s net zero target. These benefits include:

• Deliver cost-savings, by driving energy efficient performance

• Reduce your carbon footprint, supporting wider sustainability strategy and net zero goals

• Improve risk management and resilience, including through on-site generation

• Drive stakeholder engagement, demonstrating your commitment to Corporate Social Responsibility (CSR) to employees, customers and other stakeholders

• Future-proof your business, by switching to clean, secure energy

Wherever you are on the energy transition journey, this is your opportunity to make a difference; to drive opportunities, cut costs and improve CSR, all whilst playing your part in a better energy future.

Energy transition is about making better use of the resources we have available. Whether switching to electric vehicles, improving the efficiency of buildings or tapping into renewable energy, there are a range of measures you can take to drive sustainability across your business.

At Shell, we're also on a journey to net-zero. Our approach is to reduce emissions from our own operations, including the production of oil and gas, by increasing energy efficiency and capturing or offsetting any remaining emissions. You can read more about Shell’s Powering Progress strategy to net-zero here.

To support your energy transition journey, why not contact us to get affordable, cleaner and simple renewable energy solutions.

* https://www.theguardian.com/environment/2021/jan/28/uk-electricity-from-renewables-outpaces-gas-and-coal-power

**https://www.weforum.org/reports/fostering-effective-energy-transition-2020

***Research conducted by Opinium Research amongst 524 senior decision makers at companies across the UK, with an even representation of companies of all size (sole, micro, small, medium and large) conducted between 28 October and 4 November 2020.

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