How to prepare your business for the energy transition

As we aim towards a future where energy is affordable and sustainable, you may be wondering how you can prepare your business for this transition. While many countries and organisations have a goal of becoming climate neutral by 2050 by cutting net greenhouse gas emissions to zero, this can only be achieved if there is a significant reduction in the use of fossil fuels - so what can you do as a business to make an impact? From creating an energy transition plan to putting practical actions in place, keep reading to find out more.

What is an energy transition plan?

In short, an energy transition plan outlines a business’ strategy for moving towards a greener future. The plan should clearly detail the organisation's commitments to achieving this, including greenhouse gas emissions targets, in addition to how the transition will impact the company’s business model.

An energy transition plan also includes attainable and actionable steps that will be taken to meet these commitments, as well as the ways in which performance will be measured, monitored and reported to highlight current achievements and help drive future developments.

What makes a good energy transition plan?

A good energy transition plan should provide a thorough, detailed overview of how a business proposes to move towards a more sustainable tomorrow - so what should you include in yours? Below, we take a closer look at three things you should keep in mind to create a strong and successful energy transition plan.

Regulatory compliance  

It’s important to be aware that there are climate transition planning standards that your transition plan should abide by. There are specific entities which have disclosed regulatory requirements and guidance on climate transition planning, including the Carbon Disclosure Project (CDP), the Glasgow Financial Alliance for Net Zero (GFANZ) and Climate Bonds Initiative (CBI). While there are a range of frameworks available, you should find that they are similar in theme. In fact, many businesses use guidance from across multiple bodies to ensure credibility and conform with the wider expectations and regulatory standards when creating their plans.

Stakeholder engagement  

A transition plan should outline the ways in which engagement with stakeholders will be utilised to help achieve a successful transition. The plan should detail how engaging with stakeholders can support the transition by collaboratively working through common challenges to encourage a net zero aligned transition strategy.

A detailed plan of action

A detailed plan of action is essential. This will ensure investors fully understand the challenges involved in delivering the climate commitments, aiding them in their decision-making. Your plan of action should outline your company’s approach to achieving a low-carbon future, including how this will impact the existing business model, as well as acknowledging the opportunities and risks of this commitment and any potential future expenses.

What can you do on a practical level?

As well as creating a good transition plan and making sure you have the relevant documents in order, it’s important to think about the practical changes you can make as a business to support your transition to a greener future. Below, we’ve outlined three ways you can ensure you hit the ground running when it comes to achieving a more sustainable outlook for your organisation.

Install smart meters

Installing a smart meter in your business premises allows you to monitor and track your energy usage more efficiently and effectively than if you had a standard gas and electricity meter. A smart meter uses a secure smart data network to automatically and directly submit your readings to your gas and electricity supplier. This provides a more accurate way of measuring your energy consumption, helping you determine where you might be wasting energy throughout your business. In turn, this allows you to make changes within your organisation to improve your energy habits.

Invest in renewables  

To take bigger steps towards a more sustainable future for your business, you may want to consider investing in renewable energy sources. To start with, you could swap your business’ gas boiler for a green-energy alternative to reduce your business’ environmental impact, such as a heat pump  .

You could also install a solar thermal system. This system enables you to make use of free solar energy to demonstrate your commitment to protecting the environment by lowering your carbon dioxide emissions, all the while reducing your monthly energy costs.

As we move towards a greener tomorrow, it’s essential that your business makes the necessary changes to help drive future developments. Creating an energy transition plan and making the relevant practical changes all play an important role in better positioning your organisation towards making an impact.