Overcoming Challenges on the Path to Net Zero: Insights for the Real Estate and Corporate Energy Sectors

Achieving net zero emissions is a pressing priority for businesses across the UK, particularly in the real estate and corporate energy sectors. A recent survey by the UK Business Climate Hub has highlighted the growing momentum for climate action, with 73 per cent of organisations committing to net zero as a strategic priority for the next 12 months. Many have set targets to reach net zero emissions by 2050. However, significant barriers remain, making it challenging for businesses to achieve these ambitious goals.

For property owners, landlords, and corporate tenants, the task is twofold: reducing their own carbon footprint while navigating complex regulations, managing financial constraints, and addressing gaps in knowledge and skills. Here, we explore the key challenges businesses face in their net zero journey and how they can transform these obstacles into opportunities.

High Upfront Costs and Limited Access to Finance

One of the most significant challenges businesses face on the path to net zero is the high upfront cost of implementing energy efficiency measures, renewable energy systems, and other sustainable solutions. For many companies, particularly SMEs and those in the real estate sector, the initial investment required for retrofitting buildings, upgrading infrastructure, and integrating renewable technologies can be overwhelming. Additionally, limited access to finance further complicates efforts to decarbonise, making it difficult for businesses to secure capital for large-scale projects.

However, tackling this financial challenge is essential. Real estate owners and corporate energy managers should explore innovative funding mechanisms such as green bonds, sustainability-linked loans, and government grants. By developing a strong business case that highlights the long-term cost savings and enhanced asset value from sustainable buildings, businesses can attract investment and facilitate access to the necessary funds.

Regulatory Uncertainty and Policy Instability

The real estate and corporate energy sectors are heavily influenced by government policies, which are crucial in shaping the market environment. However, regulatory uncertainty remains a major concern for businesses aiming for net zero. Frequent policy changes, lack of clarity on future regulations, and inconsistent enforcement create a volatile environment, making long-term decarbonisation planning and investment difficult.

For property developers, landlords, and corporate tenants, this uncertainty can significantly impact business strategies. To mitigate this risk, it is essential for businesses to stay informed on regulatory developments and engage with industry bodies to advocate for clearer, more stable policies. Building relationships with policymakers and contributing to consultations can help ensure future regulations are realistic, achievable, and aligned with industry needs. Partnering with experienced sustainability consultants, like Inteb, can also provide the regulatory expertise needed to navigate these complexities and ensure compliance.

Outdated Infrastructure and the Challenge of Retrofitting

A large proportion of commercial properties in the UK were constructed without energy efficiency or sustainability in mind. Retrofitting these older buildings to meet modern energy standards presents significant challenges, requiring substantial investment and strategic planning. The need to upgrade outdated infrastructure, install metering systems, and improve building performance presents both technical and logistical hurdles for property owners and corporate occupiers.

To address this issue, phased retrofitting strategies that prioritise the most impactful upgrades—such as insulation, lighting, and HVAC systems—should be considered. By adopting a data-driven approach, businesses can identify the most energy-intensive areas and develop targeted solutions that provide the greatest return on investment. Integrating smart building technologies, such as Building Management Systems (BMS) and IoT sensors, can optimise energy use and enhance building performance, making the journey to net zero smoother and more efficient.

Skills Shortages and Lack of Trusted Information

The survey revealed that many businesses are grappling with a shortage of trusted information sources, while a lack of skilled professionals in the field is further hampering decarbonisation efforts. This is particularly evident in the real estate and corporate energy sectors, where technical expertise is required to implement effective energy management and sustainability strategies.

To overcome this challenge, businesses must invest in training and development programmes to upskill their teams and foster a culture of sustainability. Participating in Continuing Professional Development (CPD) programmes, like Intebinars, can provide employees with essential insights into energy management, sustainability best practices, and compliance. These free, CPD-accredited webinars help bridge the knowledge gap and empower teams with the skills needed to tackle the challenges of net zero. Furthermore, by engaging with external experts and joining industry networks, businesses can stay informed about the latest developments and innovations in the sector.

Long-Term Policy Stability and Government Support

The findings of the UK Business Climate Hub survey emphasise the need for greater government support to help businesses overcome the barriers to achieving net zero. A staggering 92 per cent of organisations said they would benefit from enhanced collaboration between government and industry, as well as more targeted financial mechanisms and better information resources.

For the real estate and corporate energy sectors, long-term policy stability is essential. It builds confidence and encourages investment in sustainable projects. The UK government has a vital role to play in providing clear, consistent guidance and financial incentives to accelerate decarbonisation efforts. This could include support for green building initiatives, enhanced energy efficiency programmes, and sector-specific decarbonisation pathways that cater to the unique challenges faced by different industries.

Turning Challenges into Opportunities

While the barriers outlined above are significant, they also offer opportunities for businesses in the real estate and corporate energy sectors to innovate, differentiate, and lead the charge towards a sustainable future. By taking a proactive approach and working with sustainability partners, companies can turn these challenges into stepping stones on the road to net zero.

At Inteb, we are committed to supporting our clients on their net zero journey. From regulatory compliance and energy management to carbon reduction strategies and sustainable building design, we offer a comprehensive range of services that provide the expertise and guidance businesses need to achieve their sustainability goals.

Partner with Inteb for a Clear Path to Net Zero

Navigating the road to net zero can be complex, but with the right partner, it doesn’t have to be. Inteb is here to simplify the journey, offering expert advice and innovative solutions tailored to your business needs. Whether it’s navigating regulatory changes, overcoming financial hurdles, or improving building performance, we’re with you every step of the way.

Choose Inteb as your partner in sustainability and turn your net zero ambitions into tangible success.