London

Working with Businesses to Improve London’s Energy Efficiency

CitiesLondonWorking with Businesses to Improve London's Energy Efficiency

Bloomberg Associates partnered with the Greater London Authority to design, implement, and scale a program that encourages and helps businesses to reduce energy consumption, carbon, and costs.

I am committed to helping businesses thrive and become more sustainable…as we build a greener and more prosperous London for all.

Sadiq Khan, Mayor of London

Relevant Expertise

Implement Sustainable and Resilient Solutions

Emissions Reduction
Energy Efficiency and Incentive Programs

Challenge

London is working urgently to combat climate change, with Mayor Sadiq Khan setting an ambitious goal to achieve net zero carbon emissions citywide by 2030. Tackling emissions from existing commercial buildings – which produce 18% of London’s emissions and will continue to account for most building emissions in the coming decades – is essential to reach this target.

99% of London’s businesses are small and medium-sized businesses (SMEs), making their participation key to this effort. However, many SMEs lack the expertise, capacity, and funding to tackle workplace decarbonization – and because the Mayor of London cannot set emissions or energy efficiency standards for existing buildings, voluntary action is needed.

Approach

To address these needs, the Greater London Authority (GLA) asked Bloomberg Associates (BA) to help design a private sector building decarbonization program focused on SMEs. Building on learnings from cities including New York, Boston, Toronto, and Melbourne, the team developed a voluntary program that partners with local Business Improvement Districts (BIDs) to engage and encourage businesses to reduce their workplace energy use.

In 2021-22, the Mayor’s Business Climate Challenge (BCC) was piloted in partnership with the Better Bankside BID. Participants pledged to reduce their energy use by 10% in one year. To support them in taking action, they received bespoke energy audits, recommendation reports, and a net zero roadmap, as well as training on key energy management topics, cohort engagement opportunities, and recognition for high-achieving participants.

Pilot businesses smashed the target, reducing their energy use by an average of 16%. Building on this success, the BCC scaled to nine London neighborhoods in 2022-23, with over 200 workplaces – from theatres to gyms to doctor’s offices to restaurants – accepting the challenge.

Impact

The BCC has demonstrated significant results. Nine months after receiving energy audits, 2022-23 participants showed a reduction in their energy use by 7.1% on average – worth an estimated £2,800+ in annual utility cost savings per business. Post-program, 99% of participants indicated plans to take additional energy-saving measures, and 80% reported that the BCC enabled them to accelerate or go further than they otherwise would have.

The BCC’s impact has catalyzed further action. BCC delivery partners secured £1.3 million in UK government funding to replicate the program for over 200 more businesses in 2024. Program learnings are also guiding work to decarbonize 1,300 National Health Service doctors’ offices in London. Other cities, particularly those lacking authority over existing building emissions, are recognizing the model’s benefits to spur their own decarbonization.

The BCC offers a replicable approach to accelerate energy efficiency and reduce emissions while also delivering economic benefits; it’s good for business, and good for the planet.