Our Net Zero Targets: Driver or Burden?

By Tim Holman, Head of Consultancy, TEAM Energy

Introduction

As an energy and net zero consultancy, it is a priority for us to lead in the net zero space, setting ambitious targets that align with our core values as an organisation. We are an employee-owned business that wants to make positive change. To support this ethos, we have committed to achieving net zero emissions by 2030, 20 years ahead of the UK Government’s target and we are shifting the way we work to achieve this. The commitment has been embedded into our operations, our culture and our consultancy practices. 

We became carbon neutral in 2021 through verified offsetting, but our focus remains on real emissions reductions. Our strategy is validated by the Science Based Targets initiative (SBTi), committing us to a 90% reduction in Scope 1, 2, and 3 emissions from a FY2019 base year.

Our roadmap includes energy efficiency upgrades, renewable energy generation, travel and commuting initiatives, and supplier engagement.

How net zero supports our business strategy

Our commitment to our net zero targets has transformed the way we run our organisation. It has sharpened our decision making, changed our culture and aligned our business model with long term sustainability. 

Our net zero strategy has been led from board level, and we have bought all our employees along for the journey ensuring they feel engaged, and they understand why and how we are reducing our business carbon emissions. 

Embedding carbon reduction into our corporate strategy has also strengthened our consultancy offering. Our customers increasingly seek partners who have their own net zero commitments and ours enhances our credibility as an organisation. 

We have invested in achieving carbon neutral ahead of our net zero target, we believe this is the right thing to do. Since FY2021, we have fully offset all our emissions and remain committed to reducing our footprint as we progress toward becoming net zero.

Aligning our business strategy around our ambitious targets enables us to lead first with our carbon reduction plan. 

How has net zero impacted our organisation from a financial aspect?

As an organisation we would love to be able to put every net zero initiative into place and celebrate our achievements. However, as with many businesses that are on a similar journey, we still need to bring in a profit and balancing our net zero plans with our financial requirements is something we manage carefully. There is a cost to change, but it doesn’t have to be business vs sustainability, we want to create a strategy that includes both. 

We have made some large financial commitments to get the ball rolling including, upgrades to our solar PV system, HVAC system modernisation. Electric Vehicle charging infrastructure and free charging for employees, and HVO fuel switch for our standby power generator, all of which required significant investment. We have also invested in establishing a robust environmental management framework to achieve ISO 14001 certification. 

However, we have seen the benefits of these investments, with reduced energy consumption, lower travel costs, and improved operational efficiency delivering measurable savings with relatively short paybacks. Tracking against our Carbon Reduction Plan currently shows a 37% emissions reduction since our FY2019 base year. In addition to savings, being net zero ready has opened doors in public sector procurement, where PPN 06/21 compliance is increasingly mandatory.

From an operational point of view, do you see the net zero agenda as a driver, burden or both?

There have been times that the operational demands of running a business have impaired our ability to deliver against our carbon reduction strategy. Such as, in FY2024, our emissions exceeded our target due to higher than anticipated Scope 3 emissions related to increased spending on employee training, rising insurance costs, and an increase in homeworking hours and associated emissions. However, these challenges highlighted areas where we need to better integrate our strategy into the core of our business. 

The rise in homeworking emissions mentioned above was accompanied by a reduction in employee commuting emissions. Through this, we have observed that every operational change, positive or negative, has an impact. Striking the right balance is essential, as business decisions inevitably influence our overall emissions production. 

From an operational point of view, there has been some quick wins within energy efficiency that have helped drive our net zero strategy, including changing the heating schedule at our office, adjusting the water heating and cooling timers and replacing an office printer/copier. Alongside other larger projects, these simple initiatives have helped contribute to a 3.6% reduction in emissions by FY2024 from our FY2019 base year.

These quick wins are all operational changes to our premises and the way we manage our processes. When planning to reduce our emissions, we look at the short term and long term plans for the business and how reducing significant emission contributors such as employee commuting, employee homeworking and electricity usage at our premise can be reduced. 

Through this we have introduced operational changes such as, improved energy efficiency in our office and improvements to our site’s solar PV to enhance renewable energy use. For our IT and office suppliers, we opt for local suppliers where relevant, and as part of our next steps are looking to select net zero suppliers. Our Electric Vehicle salary sacrifice scheme and implementation of EV charging points with free staff charging has enable us to support removing barriers for our employees to lower their commuting emissions. 

One of the most impactful operational shifts has been employee engagement. As an employee-owned business, engagement from employees is key. We conduct an annual staff survey to understand homeworking emissions and commuting patterns. This data has informed our strategy and helped build buy-in across the organisation. We also regularly share changes and updates with everyone in the business. This internal communication means that net zero is no longer a top-down directive, but a shared mission.

Our commitment extends beyond our operations. We collaborate with the Forest of Marston Vale, supporting local reforestation and biodiversity initiatives, with colleagues taking time out of their day to plant a tree for each employee in our business. This partnership reflects our belief in community based climate action and empowers our employees to get involved in environmental projects. 

We are proud members of the SME Climate Hub and the UN Global Compact Network, aligning our efforts with global sustainability goals. Additionally, we are accredited by the Good Business Charter, reinforcing our commitment to responsible business practices.

Our net zero ambition is the driver behind all these commitments. Whilst this involves changes to our operations, it also positively impacts our employee-owned business by involving staff in decision making, aligning our business plans with our net zero plans and becoming part of communities with similar values.

Conclusion

The path to net zero does not always run smoothly and although there have been times on our own journey where things have not gone to plan or emissions have been higher than our target, we continue on with our goal.

The cost of reducing your business emissions is expensive, however in our experience we have found that committing to more sustainable suppliers is better in the long term despite being expensive in the short term. That is our ethos as a business; to create positive change for the long term and our net zero strategy is aligned with that.

Looking ahead, we’d like to see more support for SMEs and mid-sized organisations, especially around clearer guidance for Scope 3 emissions and supply chain engagement. 

We believe net zero is not a burden. We see active carbon emission reduction in a business as an opportunity to lead with purpose, build operational resistance against a fast changing world and a chance to leave a positive impact on the planet.  

Discover more details about TEAM's net zero strategy and journey so far. 

Ends

Editors notes

About Tim Holman

MEng, Msc, CEng, MEI, EnCO Consultant

Tim is experienced in the practical implementation of energy management solutions. With over 25 years’ experience in energy management, metering, monitoring and targeting, he has been a key player at TEAM since joining in 1997. After graduating from the University of Salford with an MEng Mechanical Engineering, Tim went on to obtain an MSc in Energy Conservation and the Environment from Cranfield University. He is also a Chartered Energy Engineer and a Member of the Energy Institute.

Tim’s extensive experience in energy consulting, operational strategy and his passion for sustainability make him the ideal leader to steer TEAM’s operations and consultancy services into a future of innovation and growth.

As Head of Consultancy, Tim oversees the operational aspects of our Energy Consulting and Energy Bureau and Power Management Outsourcing Services. His focus is on optimising operational workflows, promoting a culture of continuous improvement, and ensuring that TEAM Energy remains at the forefront of the carbon and energy management industry.

About TEAM

TEAM is an energy and sustainability consultancy. It helps organisations with large energy estates reduce consumption and carbon emissions to save money and meet commercial and compliance targets on their journey to net zero.

Founded in 1985, it has a long history of helping customers navigate changing definitions and certification standards. TEAM Energy is an Employee Ownership Trust (EOT), with employees having a direct stake in its customers’ success.

www.teamenergy.com