Net Zero is a target set by the UK Government to reduce the country’s net greenhouse gas emissions by at least 100% by 2050.
The plan, part of a wider strategy to combat global warming and climate change, involves businesses, individuals, organisations and other groups working together and all doing their bit, but what does it mean for your firm and what support is available to help you achieve Net Zero? Here in our guide to Net Zero consultations, you can find out.
What is Net Zero and what does it mean for your business?
Net Zero is a plan set up by the UK Government in the summer of 2019 to reduce Britain’s carbon emissions by at least 100% by 2050, compared to the levels in the 1990s.
Greenhouse gases have been identified as a major contributor to global warming and climate change, and the government’s Net Zero strategy aims to help lessen their impact.
UK businesses can only claim to be Net Zero if they are putting out no more greenhouse gases into the atmosphere than what they are taking out. There is no legal requirement for your company to be Net Zero, but you do have reporting obligations to meet.
Furthermore, there are benefits and incentives for achieving Net Zero, and strategies and support available to help you meet the requirements for it.
Book your Net Zero consultation
Your company’s obligations
Strictly speaking, there is currently no blanket law that forces every individual UK business to be Net Zero right now. However, the UK's Climate Change Act makes the 2050 target legally binding for the nation as a whole.
To hit this target, the government has introduced various "stepping stone" regulations. For most businesses, the legal obligation isn't about achieving Net Zero yet - it’s about disclosing your carbon footprint and energy usage so that stakeholders can see your progress.
Mandatory carbon reporting
The primary legal obligation for larger UK firms is the Streamlined Energy and Carbon Reporting (SECR) framework. This requires qualifying companies to include energy use and carbon emissions data in their annual directors' report.
Who must comply?
You are legally required to report under SECR if your business meets at least two of the following:
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Turnover: More than £36 million.
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Balance Sheet: More than £18 million.
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Employees: 250 or more.
New 2026 Sustainability Reporting Standards
The landscape is shifting in 2026 with the introduction of the UK Sustainability Reporting Standards (UK SRS). These are based on global ISSB standards and aim to make climate reporting more rigorous.
While currently focused on listed companies and large financial institutions, these standards are expected to "trickle down." Many experts suggest that even if you aren't legally mandated to report yet, your bank or insurance provider may soon require this data to offer you competitive rates.
The Green Claims Code and Anti-Greenwashing
You might not be legally forced to reach Net Zero today, but if you claim to be green, you are legally bound by consumer protection laws.
The Competition and Markets Authority (CMA) enforces the Green Claims Code. Under the Digital Markets, Competition and Consumers Act 2024, the CMA has the power to fine businesses up to 10% of global turnover for making misleading environmental claims.
In short: If you market your business as "Carbon Neutral" or "Net Zero," you must have the verifiable data to prove it.
Public procurement and government contracts
If your business relies on government work, Net Zero is already a "must-have." Since 2021, any business bidding for major government contracts (valued at over £5 million per year) is legally required to:
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Have a Carbon Reduction Plan in place.
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Commit to reaching Net Zero by 2050 at the latest.
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Report their Scope 1 and 2 emissions, plus a subset of Scope 3 (supply chain) emissions.
Summary of obligations by business size
The table below outlines what your legal obligations are for Net Zero depending on the size of your business and the type of company you run.
|
Business Type |
Key Legal Obligation |
|
Micro / Small |
No mandatory reporting, but must follow the Green Claims Code for marketing. |
|
Large (Unquoted) |
Must comply with SECR (energy/carbon reporting in annual accounts). |
|
Listed (PLC) |
Must comply with UK SRS/TCFD (full climate risk and transition plans). |
|
Govt. Suppliers |
Must have a Carbon Reduction Plan to bid for large contracts. |
Benefits of a Net Zero strategy
If saving the planet isn’t incentive enough, there are plenty of advantages to achieving Net Zero and incentives for businesses and incentives to encourage adoption, such as:
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Lower operating costs: By becoming more energy efficient, your firm will be in good stead to lower its gas and electricity bills.
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Attracting new business: Some clients are socially and environmentally conscious and actively seek to partner with firms that share their values.
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Tax incentives: There are several tax reliefs, capital allowances and grants available to UK businesses who achieve Net Zero.
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Access more supply chains: Most large UK corporations and government bodies now require their suppliers to provide carbon data. Going Net Zero ensures you aren't locked out of major contract opportunities.
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Better finance rates: Banks and investors are moving toward "Green Finance." Having a robust Net Zero plan can give you access to lower-interest loans and make your business more attractive to equity investors.
How to achieve Net Zero
If you need to put a Net Zero plan together but aren’t sure where to start, professional support is available. The independent energy advisers we work with offer Net Zero consultations to help you achieve your immediate goals and long-term objectives.
The process begins with a free, no-obligation business energy health check, during which they will carry out detailed carbon footprint analysis and pinpoint exactly where your firm can be more energy efficient.
From here, they will help you draw up and execute a Net Zero strategy, which will include:
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Drawing up a company policy: This might include a commitment to recycle more, reduce waste and encourage your team to adopt these values.
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Sustainable energy advice: Your adviser will explore how much your carbon footprint can be reduced by if you switch to renewable energy sources or a greener energy tariff.
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Electric vehicle advice: Your adviser can offer guidance on where it is in your best interest to switch to electric vehicles or simply drive less, if possible.
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Cutting supply chain emissions: We can also provide advice on making your supply chain greener by identifying where there is scope to switch to more environmentally friendly products, suppliers or transportation methods.
In addition to helping you build your Net Zero plan, your energy adviser will also pinpoint other areas where your firm could potentially save money, including exploring if it’s in your best interest to switch energy supplier and whether your bills are too high.
How we track your journey to Net Zero
As part of the service, the energy providers we work with will provide you with detailed analysis of how your company’s energy usage converts into CO2 emissions by giving them access to a dashboard that records their carbon footprint and consumption data each month.
Focusing primarily on electricity and gas usage at a business level, your adviser will work out your CO2 emissions and create a strategy to monitor changes each month, before providing recommendations on how to reduce those emissions.
This may be switching to a greener energy tariff, or looking at renewable energy solutions.
The platform also enables the business to record travel data, so mileage of fleet or public transport can be converted into CO2 emissions either, enabling conversations to begin around electric vehicles, cycle to work schemes, communal lift sharing or other solutions.
Book your Net Zero consultation today
Keen to launch a Net Zero strategy for your business but unsure where to start? We can help! The energy advisers we work with can offer you a Net Zero consultation and a free business energy health check to help you get started, with no obligation to proceed.
Here are just some of the reasons why people choose Money Helpdesk for their business energy needs:
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Access to experienced business energy brokers
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Specialist advice about renewable energy and Net Zero strategies
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Support securing fixed tariffs and negotiating greener deals
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Free energy health check for your business with no obligation to proceed
If you’d like to book your free, no-obligation energy health check or begin your Net Zero journey, you can get started here.
FAQs
Under the Digital Markets, Competition and Consumers Act 2024, the Competition and Markets Authority (CMA) has the power to fine businesses up to 10% of their global turnover for "greenwashing" or making misleading claims. If you market your business as "Net Zero," you must have verifiable data to prove it.