Number of UK businesses targeting net zero by 2030 has nearly doubled

Energy cost pressures are pushing UK businesses to improve efficiency and adopt renewables faster, with the number of companies committed to net zero by 2030 nearly doubling over the past year.

This is according to a PwC survey of energy decision-makers at 800 companies in the UK, which showed that 47% have set a net zero target for 2030 – up from 28% last year.

The increasing adoption of 2030 decarbonisation targets is as much a result of the country’s own emissions reduction goals – 81% by 2035 – as it is a consequence of rising energy costs volatility.

Digitalisation is driving higher energy consumption

92% of the executive leaders surveyed said they expect energy price volatility to increase the price of their own products and services in the next 12 months, and 83% expect energy consumption to increase in the same timeframe – led largely by a growing reliance on energy-intensive technologies such as AI.

As a result, UK companies are prioritising energy efficiency and renewable power. More than 80% plan to increase investment in energy management over the next year, with software and equipment changes topping the list of preferred actions.

In addition, 42% already have a renewable energy supply agreement, 40% have implemented on-site solar and 38% are using energy storage solutions like batteries for better energy management.

Interestingly, cutting carbon emissions is a top priority for energy managers, ahead of cutting costs and reducing consumption – and this is driven by regulation and energy security concerns.

Renewable PPAs expected to grow

While just 29% of respondents say their company has a renewable power purchase agreement (PPA), PwC warns that “future demand may outpace supply, driven by rapidly approaching deadlines to meet decarbonisation targets and the lack of immediate solutions to accelerate new power generation projects through the congested grid connections queue”.

The UK is the only country with a new nationally determined contribution (NDC or the national decarbonisation goal mandated by the Paris Agreement) that is aligned with a 1.5ºC future. 

The country’s decarbonisation drive appears to be gaining momentum and boosting economic growth: its net zero sector grew by 10% in 2024, contributing £83.1 billion in value added.