Sustainability is no longer a side conversation in business, it is becoming central to how organisations operate, compete, and grow.

In a recent discussion with Paul Copsey and Lee Freeman from Auditel, we explored how the conversation around Net Zero is evolving, where businesses are getting it wrong, and, crucially, how reducing carbon can also reduce costs.

From Buzzword to Business Priority

Over the past five years, sustainability and decarbonisation have moved from niche concerns to mainstream business priorities. But as Paul and Lee highlighted, the journey has not been straightforward.

While sustainability remains high on the agenda, it often competes with more immediate pressures such as rising energy costs, global conflicts, and day-to-day commercial challenges.

For many businesses, particularly SMEs, this creates confusion around what they should actually be doing and where they should start.

This lack of clarity is one of the biggest barriers to progress.

Net Zero: Not Just Compliance, A Competitive Advantage

One of the most important shifts is how businesses view Net Zero. 

It is no longer just about ticking compliance boxes, it is becoming a genuine commercial opportunity.

Increasingly, organisations are being required to demonstrate their carbon credentials to win or retain business. Whether it is government contracts or large corporate supply chains, having a carbon footprint and reduction plan is fast becoming a prerequisite.

Beyond compliance, there is also a competitive advantage at play. 

Businesses that act early position themselves ahead of the curve, making them more attractive to clients, more resilient to regulation, and better equipped to adapt, while also attracting and retaining talent as young professionals increasingly seek employers with clear, published decarbonisation strategies.

As Lee put it, companies are now “either born green, going green, or going bust.”

Breaking the Biggest Misconceptions

A recurring theme in the conversation was how many businesses misunderstand carbon reduction.

Too often, it is seen as limited to things like switching to electric vehicles, installing solar panels, or upgrading to LED lighting. While these are valuable steps, they only scratch the surface.

In reality, emissions come from a wide range of sources, many of which are less obvious. 

In fact, Paul and Lee frequently find that just two or three sources account for 70 to 80 percent of a company’s total emissions.

Without understanding the full picture, businesses risk missing the most impactful opportunities.

Start with a Baseline, Not Assumptions

The most effective way to begin any decarbonisation journey is by establishing a clear baseline.

This means gathering data across all areas of the business, including energy, fuel, supply chain, travel, and more, to understand exactly where emissions are coming from.

It is not always easy. Many organisations struggle to compile a full year’s worth of data across multiple categories. But without this foundation, meaningful progress is difficult.

A robust baseline enables informed decision-making and turns sustainability from guesswork into strategy.

The Quickest Wins: Cut Carbon, Cut Costs

One of the most compelling insights from Paul and Lee is that reducing carbon does not have to mean increasing costs. In many cases, the opposite is true.

Quick wins often come from improving energy management, which includes reviewing usage and securing more competitive contracts, particularly for renewable energy. 

Businesses can also make significant gains by improving fuel efficiency and procurement, especially if they rely heavily on transport or logistics. In addition, simply renegotiating electricity and gas contracts can unlock savings that help fund wider sustainability initiatives.

This is where sustainability becomes commercially powerful, in some instances  it can effectively pay for itself.

The Role of AI: Opportunity vs Reality

While AI is transforming many industries, its role in carbon management is still emerging.

Currently, much of the work in establishing a carbon footprint relies on real-world data such as bills, spreadsheets, and operational records. AI may eventually streamline this process, but today, data collection remains a manual challenge.

However, the future potential is significant. AI could help businesses quickly estimate their carbon footprint, identify hotspots, and prioritise action without requiring perfect data from the outset.

There is also a growing conversation around AI’s own environmental impact, particularly in relation to data centres and digital infrastructure. At present, most businesses are not factoring this into decision-making, but that is likely to change.

Supply Chains and Scope 3: The Hidden Majority

For many organisations, the biggest emissions do not come from their direct operations, they come from their supply chain.

Scope 3 emissions can account for up to 80 percent of a company’s total footprint, yet they are often the least understood and hardest to measure. Even factors such as staff commuting can rank among the top contributors.

As procurement strategies evolve, businesses are being asked to provide more transparency and accountability. What was once treated as lip service is now being enforced.

Balancing Cost and Sustainability

One of the realities businesses face is the tension between sustainability and cost.

While there is growing interest in sustainable suppliers and solutions, they often come at a premium. If that cost cannot be passed on to customers, it becomes a difficult commercial decision.

However, the overall trajectory is clear. Sustainability is not a passing trend, it is a long-term shift. As Paul described it, it is like a steam train moving steadily but impossible to stop.

What Separates Action from Talk?

Not all organisations are progressing at the same pace, so what makes the difference?

It often comes down to having strong leadership and long-term vision, combined with engagement across the entire organisation. Businesses that succeed tend to encourage ideas from employees at all levels while also being willing to challenge established ways of working.

Sustainability is not just a strategy, it is a mindset that needs to be embedded throughout the business.

The Biggest Challenges Ahead

Despite growing awareness, two major barriers remain.

The first is funding, as many businesses lack the upfront budget for sustainability projects. The second is understanding, with a continued gap in what Lee described as environmental literacy.

This is where expert guidance becomes critical, not just to implement solutions but to educate, challenge assumptions, and uncover opportunities.

The conversation around Net Zero is evolving rapidly. What was once seen as a compliance exercise is now a commercial imperative and a strategic opportunity.

For businesses willing to take a smarter, data-driven approach, the benefits are clear. Lower costs, reduced risk, and stronger competitive positioning all come into play.

The key is knowing where to start and focusing on the changes that deliver both environmental and financial impact.

Because in today’s landscape, sustainability is not just good for the planet, it is good for business.