The updated Carbon Budget and Growth Delivery Plan: What it means for your business

On the 29^th of October, the Government’s Department for Energy Security and Net Zero (DESNZ) released its updated Carbon Budget and Growth Delivery Plan. The plan outlines new goals developed against promises made in the Paris Agreement, created after the first global Climate Change Conference held in 2015. The timing was significant; earlier this month, the 2025 United Nations Climate Change Conference, known this year as COP30, got underway.

Leaders from around the world gathered in Brazil to discuss a decade of climate action and progress. The event serves as a reminder that the pledges made need to have a clear, immediate impact. 

This new legislation aims to cut emissions in the 2030s in the UK’s legally bound path to become net zero by 2050. Though the date is far away, all organisations should take this moment to review their own progress, pitfalls, and improvements they need to make.

What’s in the updated plan?

DESNZ’s updated report details climate actions as a legal duty, while highlighting the social and economic value reforms can bring. At its core, the budget is a five-year cap on total greenhouse gas emissions, set under the Climate Change Act 2008, with interim milestones for the UK to stay on course for its net zero target.

The plan covers energy, transport, agriculture, homes and industry emissions, providing a structural pathway that shapes UK regulations and compliance across businesses. It introduces three new categories of emissions savings to help close the “emissions gap,” a term referring to the difference between predicted greenhouse gases released against the lower levels needed under the Paris Agreement.

Regardless of the sector, your businesses will likely need to make changes. The plan is a whopping 238 pages; we’ve reviewed it so you don’t have to, and have developed key recommendations and next steps:

Refresh your operational emissions inventory

Update your Scope 1 and 2 emissions using the latest government baselines and projections in the plan. For example, if your organisation operates a car fleet, your internal modelling of total petrol and diesel usage must assume a transition rate that aligns with the 21 per cent zero emission vehicle penetration by the 2030 goal.

Start auditing your fleet now, identifying which vehicles need replacing and when, and assessing your site's capacity for charging infrastructure. Consider grid connection constraints, installation timelines and the capital investment required.

Assess your heating infrastructure

Create a short risk register ranking buildings by reliance on gas heating, EPC rating, tenant type, local heat network opportunity and grid connection constraints. The upcoming Future Buildings Standard mentioned in the report will mandate high efficiency and low-carbon heating, and outlines that clean heating will represent the majority of heating systems in non-domestic buildings by 2035. The plan details heat pump scaling, Clean Heat Market policies and industrial and commercial heat decarbonisation pathways. This applies to any business with gas boilers, fossil heating or ageing HVAC systems.

Your business should also explore the strengthened heat network funding and zoning powers offered at the local authority level; these are likely to affect large business campuses, commercial buildings in cities and retail parks.

Implement circular economy principles

Without an up-to-date digital inventory, one site may order new furniture while another has those items going unused. Digital asset registers can be used to track the age, condition and location of assets to prevent unnecessary purchasing or disposal. Use these inventories as guides to support re-use, recycling, remanufacturing and low-carbon material adoption.

The average office chair has a carbon footprint of 72 kgCO2e, and a six-person bench desk has 228 kgCO2e. A strategic furniture management approach can significantly support your net zero goals, but many businesses lack oversight of furniture and IT equipment.

For unwanted items, explore refurbishing, selling or donating to local charities before considering disposal. If an item must be recycled, work with a partner that provides a report on the lifecycle of each composite material.

When buying new items, consider refurbished equipment or verify what fibres are used in the manufacturing process to understand if an item was made sustainably. For multi-site estates, scaling up this approach can make a huge impact on your carbon footprint.

Occupancy data management systems and carbon sensor technology can also provide real-time insights into space usage and environmental performance. These systems can help you identify underused areas of space and track energy consumption patterns. This data-driven approach reveals opportunities to consolidate operations and reduce your carbon footprint through better space planning.

Leverage the 2026 business rates re-evaluation

The business rates reset in April will see a significant cost rise for businesses, and every square foot that isn’t generating value is a liability. Use this fiscal pressure as a catalyst for carbon reduction by auditing occupancy and right-sizing your real estate footprint.

What challenges would your business face?

These transitions are far from simple, and businesses need to walk before they run. The plan provides a roadmap to help you adopt a phased net-zero approach. Review what actionable steps you need to take against this legislation before developing longer-term plans.

For example, transitioning to an EV fleet takes careful planning: installing charging infrastructure, managing grid connection constraints, and coordinating replacement schedules across potentially large and varied fleets. Similarly, creating a digital asset register from scratch can seem like a big ask, but the pay-off in cost savings and better sustainability is well worth it.

By refreshing your emissions inventory, creating risk registers for your property and transport portfolios, embracing circular economy principles, and leveraging occupancy data management and carbon sensor technology, your organisation can use regulatory compliance to improve your estate's efficiency.

Support with your estate strategy

BMG supports large organisations to audit asset footprints, implement workplace change, manage furniture and deliver relocations.

Contact us or fill out a quote enquiry form to explore how we can help you prepare for the business rates revaluation and turn it into a cost-saving opportunity.