Net Zero Navigator 2026

1.  Compliance

Focus on energy performance will intensify significantly – and some will get caught out.

Commercial buildings are expected to have to reach Energy Performance Certificate (EPC) C by 2028 and EPC B by 2030. While we’re still awaiting the Government’s final consultation response, the direction is clear – tighter enforcement, shorter validity periods and a well-defined path to EPC B ratings. Essentially they are modern new-build standards for ALL commercially let buildings. The work for most private landlords and organisations starts now.

If you do one thing this year, the priority is knowing your true baseline, site by site. That’s because the immediate risk isn’t future thresholds, it’s what happens when old ratings are retested under updated methods. Many assets previously rated as safe and compliant will no longer be such, potentially creating a huge headache for organisations.

Better-performing buildings

The reason for such big changes to EPCs is to make the certifications more relevant, frequent and useful. Shorter certificate cycles make out-of-date ratings visible sooner, which improves corporate sustainability disclosures and keeps environmental sustainability claims honest.

The intention is to identify actions owners should take, not just a grade. This means buyers, lenders and occupiers can see issues at a glance. Enforcement is expected to toughen up, ending the era of low-cost, low-value assessments. The goal is better-performing buildings.

“Many assets previously rated as ‘safe’ will no longer be such, potentially creating a huge headache and costs for organisations.”  

With just over two years to the first deadline, organisations should adopt a three-phase approach:

1. Identify, fast. Run a portfolio health check and refresh EPCs where they’re old or potentially invalid to base your sustainability strategies in current data. Use analytics to reveal shortcomings and sketch out costs and necessary interventions, turning uncertainty into a structured plan.
   
2. Develop investment-grade cases. For priority sites, turn the EPC findings into clear business cases that support ESG reporting and your decarbonisation plan. Think fabric, heat, lighting, controls and on-site generation. Each should have cost, ROI and delivery risks laid out. Fabric and heat often pay back more slowly, so blend in low or no-cost wins to lift the overall case.
   
3. Implement at two speeds. Start quick wins now while you design the bigger projects. For each building, decide whether to upgrade to meet new compliance, claim an exemption based on the new rules, get rid of it, or re-let/repurpose. Schedule works alongside operational and decarbonisation plans so you don’t spend on assets you’ll likely get rid of.

This isn’t about reporting differently; it’s about acting decisively. Ultimately, compliance is a catalyst for improvement.

3. Strategy

 Net zero momentum will withstand the headwinds.

Net zero momentum has faced strong headwinds – political uncertainty, economic pressures and supply chain disruptions. Yet, organisations are not stepping back; instead, they are repositioning their efforts. Crucially, momentum is strongest where decarbonisation is linked to value creation and robust business cases, not just climate ambition.

A recent report from the World Economic Forum highlights that the global green economy has reached multi-trillion-dollar scale. Green revenues are outpacing other long-established sectors, while investment in climate adaptation is now exceeding $1 trillion annually. For UK organisations, this signals that net zero is not only an environmental commitment but a major commercial opportunity. By aligning strategies with these global trends, UK organisations can attract investment, drive innovation and build resilience – ensuring they remain competitive as the market rapidly evolves.

Organisations recognise that delaying action on net zero delivery only increases long-term reputational, financial or operational risk.

Despite the headwinds mentioned, UK organisations are largely continuing with net zero plans – even if they’re adjusting how they position their efforts. The narrative has shifted from carbon reduction for its own sake to include energy resilience, efficiency, climate adaptation and wider ESG priorities.

While some headlines have recently pointed to slowing investment in net zero, the reality is different. Organisations recognise that delaying action on net zero delivery only increases long-term reputational, financial or operational risk.

Challenges ahead

Skills shortages are among the major challenges ahead. There are only 4,000 qualified heat pump installers in the UK, against a need for 150,000. The gap threatens to slow progress, especially as heating across all sectors accounts for approximately one third of the UK’s total emissions. Decarbonising and electrifying heat in commercial and public buildings is therefore essential for meeting net zero targets, making development of these skills an urgent strategic priority.

Meanwhile grid connection bottlenecks are another issue. The current queue for grid connection requests totals around 700-800 gigawatts – these projects require the approximate energy taken to power the UK annually 20 times over.

Although funding exists, there’s a persistent mismatch between available capital and viable projects. The recently published Carbon Budget and Growth Delivery Plan aims to address some of these barriers. After two false starts, this iteration provides detailed breakdowns for different sectors, quantified emissions reductions and clearer compliance expectations. It emphasises actionable solutions, doubles the clean energy workforce target to 100,000 by 2030 and frames net zero as an opportunity for economic growth.

To maintain momentum, organisations need:

• Targeted financing for decarbonisation goals: Access to innovative funding models and green finance that directly support investment in low-carbon technologies and infrastructure.
• Digital tools to support delivery: Adaption of advanced digital platforms, data analytics and AI to model roadmaps, optimise energy use, track emissions and enable transparent reporting.
• Accelerated skills programmes: Rapid expansion of training and upskilling initiatives to build the workforce needed for large-scale deployment of green technologies, such as heat pumps, high-voltage (HV) infrastructure, electrical works and renewable energy systems.

Success in 2026 will again depend on embracing a holistic view, recognising that net zero strategy is no longer purely about carbon and climate. It’s about building resilient, adaptive organisations that create value while decarbonising.

5. Water

New water targets and costs will make waves for many organisations.

Water has been somewhat forgotten in sustainability strategies. But 2026 is the year water moves quickly up organisations’ to-do lists.

Back in April 2025, non-household water bills across the UK increased by an average of 42%. The reason? Decades of underinvestment in ageing infrastructure has left the UK with a water system that loses over 20% of treated water to leakage before it reaches consumers. An increase on the bottom line means water is becoming impossible to ignore.

Yet since the water market opened in 2017, only around 26% of non-household customers have made the switch to another supplier. Many organisations don’t realise they can change or that better pricing and service exist. As costs rise and regulation tightens, that passive approach becomes increasingly expensive.

The water regulator Ofwat’s £104 billion Asset Management Period 8 funding package (from 2025 – 2030) is designed to overhaul the sector and address pollution controls. This is considerably more than AMP7’s £59 billion and has to be paid for somehow. Bills are the solution.

The bigger picture emerging

Beyond immediate cost pressures, the UK faces a projected water shortage of 5 billion litres daily by 2055. Climate change is reducing rainfall and making it more torrential when it does occur. This means less absorption and lower water tables, resulting in sharper flood risk when it rains, but less groundwater to draw on in dry periods. This puts greater strain on infrastructure and the ecosystem. Meanwhile, as part of the UK Net Zero Strategy, Government targets require commercial water use to reduce by 9% by 2038 and 15% by 2050, from 2019/20 baselines.

The Cunliffe Review, published in 2025, called for reform of water regulation. While its full implementation will take years, the direction is clear:

• Consolidation of disparate regulators into a single, more powerful body
• Tighter enforcement on pollution and abstraction (extraction)
• Greater accountability for water companies
• Increased focus on environmental outcomes

“The UK faces a projected water shortage of approximately 5 billion litres daily by 2055.”

Actions worth taking now

Organisations can still act now to manage rising costs and prepare for tighter regulation.

Take a whole-business view: Undertake a strategic and operational review of your entire water footprint. That includes how it is sourced, used, lost and discharged. This provides a single picture of demand, reveals hidden inefficiencies and opportunities, and makes sure every intervention supports long-term resilience, compliance and lower cost.

Smart metering adoption: Programmes like AMP8 ramped up from 2025 across water companies, with many plans running through 2030–35. Being an early adopter means you’ll gain visibility into consumption, which is the first step to reduction.

Treatment at source: This is particularly relevant if you’re involved in manufacturing, food production or chemical-intensive operations. Treating effluent before discharge reduces pollution impact and potential penalties.

Efficiency measures: Simple changes in your operational practices, like reducing chemical use in lab environments or implementing water-efficient processes, will deliver cumulative impact.

Strategic procurement: Understand your water supply chain and work with retailers who prioritise efficiency.

Water now requires the same strategic thinking applied to electricity and gas – before legislation forces it and while options remain flexible.