Why energy strategy should be a boardroom priority

Niall Parkin explores how businesses can improve energy efficiency and minimise their impact on the environment by optimising their energy consumption and exploring the benefits of alternative fuel sources.

Across the UK, businesses are facing a growing energy dilemma. Rising fuel costs, tightening environmental regulations and increasing pressure to demonstrate sustainability are converging to create a perfect storm – particularly for sectors with high energy demands.

From industrial facilities and commercial buildings to rural developments and logistics hubs, energy strategy is no longer just a technical decision – it’s a business-critical one. 

Pressure to act

Energy remains one of the most significant and volatile operating costs for UK businesses. According to the ‘Energy Consumption in the UK 2024’ report, the commercial and industrial sectors account for over 30% of final energy use, with fossil fuels still dominant in off-grid and high-heat applications.

At the same time, the UK’s commitment to reaching Net Zero by 2050 is accelerating regulatory change. Additionally, the tightening of the UK Emissions Trading Scheme (UK ETS) and the growing impact of carbon pricing are making inaction increasingly costly, both financially and reputationally.

While renewable energy adoption is rising, it’s not without challenges. High upfront costs, infrastructure requirements, and intermittency mean that many businesses need transitional solutions that deliver immediate benefits without requiring a complete overhaul.

Energy optimisation doesn’t demand radical transformation overnight. It starts with informed decisions about fuel, equipment, and behaviour that collectively drive meaningful progress. For businesses ready to take that first step, the benefits are clear: reduced costs, lower emissions, and a more resilient energy future.

From strategy to action

For businesses ready to take meaningful steps toward energy optimisation, the path forward doesn’t have to be complex or costly. In fact, some of the most effective actions are also the most accessible.

Start with an energy audit

Effective energy strategies begin with a clear understanding of current consumption. An energy audit helps uncover inefficiencies in heating systems, insulation, controls, and operational practices that may otherwise go unnoticed. The Energy Efficiency Scheme Evaluation 2024/25 found that independent assessments enabled organisations to identify savings that could be reinvested into service delivery or operational improvements.

Upgrade existing infrastructure

Once inefficiencies are identified, upgrading existing systems can yield significant savings. Replacing outdated boilers with high-efficiency models, installing programmable thermostats, and improving insulation are proven ways to reduce energy use. Despite the strong financial case, many businesses still undervalue energy efficiency – missing out on substantial savings with minimal disruption.

Monitor, measure, and motivate

Technology plays a vital role in sustaining improvements. Real-time monitoring tools, such as smart meters and energy management systems, enable businesses to track consumption, identify patterns, and respond quickly to anomalies. But technology alone isn’t enough. Staff engagement is essential. Encouraging energy-conscious behaviours, like switching off equipment when not in use or maintaining optimal temperature settings, can lead to meaningful reductions.

Realistic route

While electrification and hydrogen are central to the UK’s long-term energy transition, they’re not yet viable for every business. Many organisations require solutions that are available now, scalable, and compatible with existing infrastructure.

Fuels like LPG, when combined with smart energy practices, offer a pragmatic route to lower emissions and improved efficiency. For example, LPG is proving to be a practical solution for breweries seeking to reduce their carbon footprint while maintaining operational continuity. It’s reliable, flexible, and can be deployed quickly without extensive infrastructure changes.

Importantly, LPG doesn’t represent a step away from renewables – it complements them. For businesses not yet ready to fully electrify or adopt on-site renewables, LPG offers an immediate emissions reduction strategy that can evolve over time.

For businesses looking to go one step further, a key consideration in this transition is BioLPG – a renewable alternative to conventional LPG. Produced from sustainable feedstocks, BioLPG can be used as a direct drop-in replacement, requiring no changes to existing equipment or infrastructure.

It’s available in varying % allocation tariffs, allowing businesses to control the pace and scale of their sustainability journey. Organisations can start with as little as 10% and increase their use of renewable fuel in line with evolving goals.

 

Continuous improvement

As the energy landscape continues to evolve, UK businesses face a pivotal moment. Rising costs, regulatory pressures, and growing stakeholder expectations are reshaping how organisations think about energy – not just as a utility, but as a strategic asset.

Whether you’re operating a brewery, managing a logistics hub, running a rural enterprise, overseeing a commercial facility, or working in sectors like manufacturing, hospitality, or public services, the principles remain the same: understand your energy use, optimise what you have, and make informed decisions that align with your sustainability goals.

Importantly, energy optimisation is not a one-size-fits-all journey. It’s a process of continuous improvement, one that can begin with small, manageable steps and scale over time. By embracing transitional solutions like LPG, businesses can take meaningful action today while laying the groundwork for deeper decarbonisation tomorrow.

In an increasingly competitive and environmentally conscious marketplace, energy strategy is no longer optional – it’s essential. Those who act now will not only reduce costs and emissions but also strengthen their reputation, enhance operational resilience, and position themselves for long-term success in a low-carbon economy.

Niall Parkin, sustainable fuels product manager at Calor