INDUSTRY NEWS


UK RETAILERS FACE £146M ANNUAL LOSSES WITHOUT NET ZERO UPGRADES


U


K 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 fi nds that these losses come from aging equipment that leaks energy and costs far more to run than it should. Despite eight in 10 retail operations managers


knowing that sustainability can boost fi nancial performance, almost half (43%) 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% 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% of a store’s energy use with 54% of facilities managers saying they have already upgraded to modern, energy-effi cient systems. • Yet the research shows that more than 34% 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 fi nds that many of those responsible for running these estates have little infl uence over sustainability and this is aff ecting 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% report that they have had no direction from their seniors, while 21% 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 fi nancial results, strengthen business resilience and improve the shopping experience, many just aren’t being empowered to act.


Chris Newman, Zero Carbon Design Manager, Mitsubishi Electric Living Environment Systems UK, said: “The retail industry has the third largest building footprint in the UK, with around 16% of all non-domestic building space occupied by shops.


This off ers a substantial opportunity to decarbonise at scale, starting with identifying the ‘easy wins’ now and reviewing the systems responsible for heating, ventilating and cooling these spaces. In having an in-depth understanding of how this equipment operates, facilities managers are uniquely positioned to support the delivery of Net Zero estates in future. Adapting estates can be


simple HVAC systems are often


responsible for much of a retail building’s total energy


consumption, so they have a crucial role to play in decarbonising them. Replacing equipment with energy-effi cient


alternatives – such as modern air conditioning and heat pumps – can be as straightforward as replacing indoor and outdoor units while keeping the existing pipework. This can lead to signifi cant energy and cost savings, compliance with incoming regulation, and ensure that the retail industry is prepared for the net zero economy.


FALL IN UK INSTALLERS FITTING HEAT PUMPS AND SOLAR PANELS, BUT THIS WILL LIKELY CHANGE


T


he UK is lagging far behind its European neighbours for installers working on heat pumps and solar panels, according to a


European-wide study by plumbing and drainage manufacturer, Wavin. The new report follows the government’s


recent additions to the Future Homes Standard, which aims to ensure that the majority of new build homes in England will be fitted with solar panels and efficient, low carbon heating, such as heat pumps, to keep household energy bills low.


The study by Wavin found a sharp 10% drop between Q4 2024 and Q1 2025 in heating, ventilation and air conditioning (HVAC) installers


includes hundreds of installers across six European countries, also found that the UK is falling behind the rest of the continent on projects which include sustainability measures. Martyn Neil, business development director


working on heat pumps, from 60% to 50%. This trend is seemingly fuelled by a shortage of skills, with just half (49%) of UK installers able to fit heat pumps, compared to 83% of their German counterparts. Wavin’s European Installer Tracker, which


for Wavin, said: “Installers are at the frontline of delivering sustainable projects and will continue to be key to achieving Net Zero in the construction industry. “Whilst this new report shows the UK has


taken time to get going, the Future Homes Standard will see the UK surge to the top of the leaderboard in just a matter of years. This means a wave of new customers for installers, all seeking solutions which will cut energy bills in the long run.


6 September 2025


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