UK retailers are losing over £146 million every year by failing to upgrade their buildings’ services to meet net zero targets, according to new research from Mitsubishi Electric. The analysis finds that these losses come from ageing equipment that leaks energy and costs far more to run than it should.
Despite eight in ten retail operations managers knowing that sustainability can boost financial performance, almost half (43 per cent) believe net zero is not seen as a priority for their business because the return on investment (ROI) falls in future trading years.
The survey of 500 retail facilities managers across the UK also found:
- 35 per cent realise that a third of their stores could become ‘stranded assets’ – too costly or impossible to rent due to poor environmental performance.
- Heating, ventilation or air conditioning (HVAC) systems account for up to 60 per cent of a store’s energy use, with 54 per cent of facilities managers saying they have already upgraded to modern, energy-efficient systems.
- Yet the research shows that more than 34 per cent of shops will remain uncompliant and unable to be updated by 2030 net zero targets.
Forward-thinking retailers are adopting a phased approach towards net zero upgrades, which helps to spread upfront equipment costs by tying it to lease events or planned refurbishment. However, the research also finds that many of those responsible for running these estates have little influence over sustainability and this is affecting their ability to act.
There is a gap between net-zero intention and action
Over a third have no control over budgets or decision making for net zero, and 42 per cent report that they have had no direction from their seniors, while 21 per cent do not even have net zero as part of their performance targets.
This lack of authority is stalling upgrades to one of the UK’s most energy-intensive industries. While facilities managers recognise that decarbonising estates can boost financial results, strengthen business resilience and improve the shopping experience, many just aren’t being empowered to act.
Share