The Role of Climate Tech in Decarbonising the Public Sector

PRESS RELEASE FOR IMMEDIATE RELEASE 20th November 2025 UK Corporate Accountability Exposed as Climate Commitments Fail to Deliver New Report Reveals FTSE250 Generates 37% of Global Aviation’s Carbon Footprint

Even as wholesale electricity prices stabilise, a new wave of cost pressure is hitting UK businesses, and it is not coming from the energy market itself. Over half of a typical business’ electricity bill now comes from non-commodity charges; these sources include the grid, balancing, policy, and standing costs that fund the UK’s transition to a net-zero energy system. These charges are rising sharply as the country races to reinforce an aging network, integrate renewables, and finance new nuclear capacity. At a recent UK Energy Select Committee session (October 2025), EDF’s CEO Simone Rossi warned MPs that “business electricity bills could rise by 20% over the next four years, even if wholesale prices were cut in half.” In other words: even if markets calm, your costs won’t. In this Insight Article, we will explain why non-commodity costs are now the biggest driver of business electricity spend; what to expect over the next decade; and, most importantly, how your organisation can prepare, mitigate, and even turn these trends into strategic advantage. The New Cost Reality: Where the Increases are Coming From Non-commodity costs (the portion of your bill that is not the electricity itself) include transmission and distribution network charges (TNUoS, DUoS), balancing and system costs (BSUoS), and policy levies such as Contracts for Difference (CfD) of the new nuclear RAB levy. Each of these costs is rising for different reasons (largely due to continued under-investment by successive UK governments over the past three decades) but together they form a powerful incline. Transmission (TNUoS): The Big Jump Starts 2025 Network investment to reinforce the grid is driving a near-doubling of fixed residual transmission charges, from £3.8bn in 2025/26 to around £7.5bn in 2026/27. These costs are passed on as fixed standing charges, which will vary by region. For multi-site operators, regional differentials could become material line-items in budgets. Balancing & System Costs (BSUoS): The Renewables Paradox With more renewable generation and a still-constrained grid, balancing costs keep climbing. Even as low-carbon energy expands, system flexibility lags behind, meaning higher costs for managing intermittency. Until storage, demand response, and grid reinforcements catch up, BSUoS will remain volatile and elevated. Distribution (DUoS): Rising with Electrification Distribution costs are increasing as networks upgrade for EVs, heat pumps, and industrial electrification. The trend is toward more fixed and capacity-based recovery rather than pure per-kWh charges, shifting cost exposure toward your site configuration and load profile. Policy Levies: New & Persistent Nuclear RAB Levy: Starting in late 2025, to fund new nuclear generation capacity at Sizewell C, the Nuclear RAB Levy will add a new cost line for all consumers. Contracts for Difference (CfD): This works counter-cyclically – when wholesale prices drop, supplier payments rise. Legacy Schemes (RO, FiT): This will continue to weigh on bills for non-EII (Energy Intensive Industries) customers (those not exempt as Energy-Intensive Industries). Standing Charges: The Silent Budget Killer Many large businesses now face daily standing charge increases of £30 or more per site. Because these are fixed costs, even highly efficient or low-usage sites will see higher total bills. “Large energy users in Britain are set to face a sharp rise in non-commodity costs – adding up to £450,000 to annual bills.” (Energy Advice Hub, 24 September 2025) The key takeaway from this: energy efficiency alone will no longer guarantee lower bills. Why This Matters for Budgets and Procurement Even if your kWh consumption falls, your electricity spending may not. This is because the proportion is fixed and policy-linked costs are increasing, while variable commodity exposure is shrinking. For most corporate customers: Standard contracts won’t protect you: Non-commodity costs are typically ‘pass-through’, meaning that suppliers charge the full amount, without mark-up and without caps. Standing charges per site: This means that portfolio design now matters, and reducing the number of metered sites or rationalising MPANs could directly cut costs. Cost allocation is changing: More fixed/capacity components mean that your load profile, peak demand, and location matter more than total consumption. In summary, you can no longer treat non-commodity costs as a small add-on; they are now central to your cost-risk model. The 5-10 Year Outlook: What to Budget For Transmission Charges (TNUoS) Trend: Sharp increase through 2026-2030, possibly stabilising later. Budget Impact: Expect near-doubling of fixed charges by 2026/27. Model per-site costs and review regional variations. Action: Rationalise sites/meters where possible. Build future transmission uplifts into capital investment models. Balancing & Constraint Costs (BSUoS) Trend: Elevated and volatile through late 2020s. Budget Impact: Hard to forecast; risk of doubling under constrained grid conditions. Action: Stress-test budgets for BSUoS volatility. Invest in behind-the-meter storage, DSR participation, or flexible load management. Distribution (DUoS) Trend: Gradual but steady rise, with capacity-based recovery increasing. Budget Impact: High electrification zones face the largest uplifts. Action: Review your demand profile and capacity agreements. Engage DNOs early for expansions or new connections. Incorporate DUoS scenarios into financial planning. Policy Levies (CfD, RAB, RO, FiT) Trend: New levies (nuclear RAB) plus counter-cyclical CfD exposure. Budget Impact: More unpredictable costs when wholesale prices fall. Action: Include a new nuclear levy line from Q4 2025. Review exemption eligibility (EII or partial relief). Ensure supplier contracts clarify treatments of all levies. Standing and Fixed Charges Trend: Material increase across all non-domestic users. Budget Impact: Small or under-utilised sites become disproportionately expensive. Action: Review metering arrangements and site count. Explore aggregation or consolidation opportunities. Lock in or negotiate visibility on fixed charges before April 2026 reforms. The Political Landscape: What to Expect Political policy directly shapes the non-commodity cost-trajectory. With Labour in power until at least 2029, expect: Strong backing for grid expansion: The largest push for grid expansion since the 1960s, driving higher TNUoS, DUoS, and BSUoS. (Financial Times, 2025) New nuclear RAB levy introduction (Sizewell C): This has been confirmed for late 2025. (Reuters) Supplier requirement for lower standing charge tariffs by 2026: However, there is limited impact expected for commercial users. (Reuters) Rejection of zonal wholesale pricing: Instead, we will maintain national uniform pricing on fairness grounds. In summary, government investment and policy stability support decarbonisation, but also raise non-commodity costs for all consumers. What Businesses Should Do Now As non-commodity costs rise faster than energy prices fall, proactive action is essential. The following five steps can protect budgets, improve cost visibility, and strengthen your energy strategy. 1. Update Your Budget Models, Now Include explicit non-commodity line-items, not just unit price assumptions. Model scenarios such as: Standing charges increase of up to +20% Transmission cost uplifts approaching +90% from 2026 Policy levy uplift if wholesale prices halve Build these into 5-10 year energy and sustainability budgets, especially if your next contract ends beyond 2026. 2. Review Procurement Structures Most supply contracts pass through non-commodity charges without limits or caps. Check whether your contract treats non-commodity costs as pass-through or fixed. Request transparent breakdowns of TNUoS, DUoS, BSUoS, and levy components. For renewals due in 2026 and beyond, consider early tendering before major uplifts. Where possible, explore supplier options offering caps or collars on non-commodity exposure. 3. Rationalise Your Metering and Site Portfolio Every MPAN carries a standing charge – which are on the increase. Review site counts and identify opportunities for consolidation or aggregation. Assess whether smaller or seasonal sites justify their metering costs. Align portfolio design with operational strategy to avoid paying for under-utilised capacity. 4. Leverage Operational Flexibility Turn flexibility into a financial asset: Shift loads away from peak periods. Integrate energy storage or participate in Demand Site Response (DSR) programs. Deploy behind-the-meter storage or generation to buffer against volatility. Integrate non-commodity exposure into all new EV, heat pump, or electrification projects. 5. Check Exemptions and Embedded Opportunities If your business is classed as an Energy-Intensive Industry (EII) or a major exporter, explore levy reliefs and exemptions. Even non-EII companies can capture value through: On-site generation or storage participation. Embedded benefits and local grid services revenue. Supplier-linked optimisation programs. Aligning Cost Management with Sustainability Strategy Rising non-commodity costs are not just a financial challenge, they are also a sustainability signal. Grid and policy charges are increasing because of the UK’s transition to a net zero energy system; building new transmission lines, integrating renewables, and funding nuclear capacity all support decarbonisation. So, rather than treating these as ‘unavoidable penalties’, businesses can view them as part of the cost of progress and respond strategically. Aligning financial planning with sustainability can turn this pressure into advantage: Invest in self-generation: Invest in resources such as solar, wind, and CHP in order to reduce imported kWh exposure. Adopt flexible demand: Design strategies which earn grid services revenue. Engage in corporate PPAs: Utilise PPA which stabilise long-term energy and levy exposure. Report transparently: Transparent reporting on energy cost drivers in ESG disclosures demonstrates proactive risk management and alignment with net zero transition. Those who benefit the most here will be those who leverage flexibility, technology, and foresight in order to manage these non-commodity costs, not just absorb them. Final Word: The New Normal for Business Energy Non-commodity electricity costs are no longer background noise, they are the main story. Over the next decade, they will determine whether your site, process, or product line remains economically competitive. Key trends to remember are: Transmission and distribution costs are set to rise sharply from 2026. Balancing and constraint charges remain volatile. New levies, like the nuclear RAB, add structural costs. Standing charges keep climbing, even if you cut consumption. Political commitment to grid expansion means costs will stay elevated through at least 2023. It is essential to act now . Model and budget for uplifts, renegotiate contracts with transparency, invest in flexibility, and align sustainability with cost management. Adapting fast doesn’t just ensure resilience against the next energy cost wave, it also allows you to turn it into a competitive advantage. At edenseven, we recognise the genuine concern across all sectors of the market relating to the significant increase in electrical non-commodity charges. We are here to support your business to model these charge increases, support forward budgeting, and develop mitigation strategies based on your specific situation. Please get in contact with us at edenseven.co.uk or any of our team if you need support. Contact edenseven: phone: +44 1223 750335 email: info@edenseven.co.uk

Why the Natural World Belongs in Every Sustainability Strategy Nature means something different to everyone. For some, it is a dog-walk through the park; for others, it is hiking misty mountains in Scotland, swimming in turquoise waters, or exploring tropical forests in Costa Rica. Whatever image comes to mind, the truth remains the same: we all depend on nature for a sense of clarity, consistency, and stability. Nature provides us with clean air, fresh water, food, and moments of calm in an increasingly busy world. Its positive impact on our mental health is well documented; yet, while most of us recognise its value, we often struggle to understand how to support it, or how to bring more of it into our daily lives. Rediscovering Nature During the Pandemic Despite, and perhaps because of, their emphasis on isolation, the COVID-19 lockdowns reminded many of us just how vital being outside and being around nature are. That single hour of permitted outdoor exercise became a lifeline, a way to unwind, reset, and reconnect with others and ourselves. A 2023 report by Jonathan Kingsley et al. found that gardening played a key role in moderating stress and improving mood during the pandemic. Those with access to a garden reported significantly higher life satisfaction and mental wellbeing than those without. This experience underlined a powerful truth: access to nature should not be a luxury, it is essential for human health and happiness. The State of Nature in the UK When we think of nature in the UK, we might picture rolling countryside, rivers, and ancient forests. But beneath that green surface lies a concerning reality: the UK is one of the most nature-depleted countries on Earth (according to the UN). Ancient woodland, i.e. forests that have existed since pre-1600AD in England and Wales (1750AD in Scotland), now make up just 2.5% of the UK’s land area. These woodlands host incredibly diverse ecosystems in which plants, animals, and microorganisms coexist in balance. When disrupted, through deforestation, culling, or chemical use, these systems become fragile and fragmented. Monoculture such as dense pine plantations, for example, may appear lush but support only a fraction of the biodiversity found in ancient woodland, leaving them vulnerable to disease and collapse. The UK once hosted brown bears, wolves, lynx, moose, and beavers. While some, like the beaver, are being cautiously reintroduced, broader rewilding debates continue. What united both sides, however, is a shared recognition of the urgent need to protect and restore nature in the UK. One major policy proposal aiming to do just that is the Climate and Nature Bill (CAN Bill), a landmark piece of UK legislation designed to tackle both the climate crisis and the nature crisis together. The Bill calls on the Government to: The Bill calls on the government to: Set legally binding targets to reduce the UK’s greenhouse gas emissions in line with the latest science (limit warming to 1.5°C). Restore nature , halting and reversing UK biodiversity loss by 2030, by setting and implementing a legally-binding roadmap. Involving the public , through a Climate and Nature Assembly that ensures public participation in shaping solutions. The proposed CAN Bill is gaining widespread support from the public and over 1,500 organisations, seeking to tackle this crisis head-on, aligning efforts to address both the climate and biodiversity emergencies. A Global Challenge The challenge extends far beyond the UK. The UN warns that over one million species worldwide are now at risk of extinction due to human activity. This loss doesn’t just affect wildlife and being able to show future generations elephants and rhinos, it threatens the very systems that sustain us: our food, water, and health. Over the past 150 years, land use has changed dramatically. With the global population more than quadrupling, human activity now dominates 75% of the planet’s usable land. The regenerative capacity of Earth’s ecosystems is in rapid decline. If we are to secure our future, regenerating the natural world is no longer optional; it is essential. Why Nature Belongs in Corporate Sustainability Despite its fundamental role, nature remains one of the most overlooked elements in corporate sustainability strategies, with the focus of many of these relating to another important aspect: greenhouse gas emissions. While this is a great start, and a fundamental issue, it must be combined with a nature strategy to ensure both the climate and biodiversity crises are tackled together. While frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) and the Science Based Targets Network (SBTN), nature-based target pilot schemes, have begun to offer guidance, many organisations still lack direction. As a result, we’re seeing a growing voluntary market for corporate nature investment, from tree planting and habitat restoration to animal welfare initiatives. Yet these efforts remain fragmented and underpowered relative to the scale of the challenge. The UK Government’s Nature Recovery Network (NRN) aims to change this by moving from protection to restoration. Its goals include but are not limited to: Protecting and managing 30% of England’s land and sea for nature by 2030 Halting species decline by 2030 and increasing species abundance by at least 10%, to exceed 2022 levels by 2042 Restoring or creating 500,000 hectares of wildlife-rich habitat outside protected sites by 2042 Improving 75% of protected sites to favourable condition by 2042 Increasing tree canopy cover to 16.5% by 2050 Improving access to nature, working across government to ensure that everyone lives within 15 minutes’ walk of a green or blue space These efforts are directly linked to achieving net zero by 2050, improving air quality, and supporting public wellbeing, outcomes that businesses can and should help accelerate. The Business Case for Nature Investing in nature isn’t just good ethics; it’s good business. Productivity and wellbeing: Studies show that employees with access to green spaces are happier, healthier, and more productive. Even having indoor plants or a green view can reduce stress, improve focus, and lower absenteeism. Customer and employee loyalty: Millennials and Gen Z, now the largest segments of the workforce and consumer base, increasingly expect companies to demonstrate environmental responsibility. Businesses wanting to attract and retain talent must act. Innovation and risk management: Nature-positive strategies often drive innovation, improve resilience, and ensure long-term regulatory compliance. Brand reputation and access to capital: Investors and consumers alike are rewarding businesses that take meaningful action on biodiversity. In short, what’s good for nature is good for business, and essential for long-term resilience. From Biodiversity Net Gain to Business Transformation Certain sectors are already leading the way. In construction, the concept of Biodiversity Net Gain (BNG) ensures that new developments deliver measurable improvements in biodiversity compared to pre-development levels. Through features such as green roofs, community gardens, wildlife corridors, and sustainable drainage systems, developers are proving that commercial success and ecological restoration can go hand in hand. A great example is Coutts Bank in Central London, which has transformed its rooftop into a thriving urban garden. The space now produces an impressive variety of fruits and vegetables, including wasabi, Sichuan peppers, iceberg lettuce, guavas, berries, and even honey from on-site beehives. This initiative highlights how even the most densely built urban environments can integrate green infrastructure, enhancing biodiversity, improving air quality, and contributing to local food resilience and community wellbeing. The question now is: how do we extend this mindset across all industries? By embedding nature into corporate strategies, from supply chains to employee wellbeing, businesses can help regenerate ecosystems while building stronger, more sustainable organisations. A Call to Action Nature is not an externality or something that can remain as a nice-to-have; it is the foundation of our economy, our health, and our future. By embracing nature as a core component of sustainability strategy, UK businesses can play a pivotal role in restoring biodiversity, supporting the Nature Recovery Network, and building a more resilient future for all. Reflecting on World Mental Health Day last month, there’s no better time than now to take action, to integrate nature not only within our businesses but also into our daily lives. With autumn upon us, why not set aside a moment this week to step outside and truly reconnect with the natural world? Notice the vibrant colours of the turning leaves, listen to the gentle rustle as they fall, feel the cool breeze on your skin, and breathe in the rich, earthy scent of the damp ground. Be present in that moment, and you’ll soon feel the restorative power that nature so freely offers. If you’d like to help drive systemic change, write to your local MP to support the Climate and Nature Bill, and learn more at www.zerohour.uk. Parliament is next scheduled to discuss the CAN Bill on Friday 29th May 2026. It's Time for Businesses to Lead When developing or reviewing your ESG or sustainability strategy, supporting nature restoration and stewardship must be part of the plan. Nature underpins environmental performance, enhances social value through community engagement, and improves staff health and wellbeing, all of which are core pillars of a credible and future-proof ESG strategy. At edenseven, we support organisations in integrating nature into their strategy in meaningful, measurable ways, from nature-positive initiatives and biodiversity planning to partnering with local community groups and improving employee wellbeing through access to green spaces. Want to learn how to integrate nature into your business, be part of the change, and reap the benefits discussed above? Get in touch with edenseven today, and let’s build a future where business and nature thrive together. Contact edenseven: phone: +44 1223 750335 email: info@edenseven.co.uk

edenseven are following trends in the renewable energy sector closely, as decarbonising the energy sector is vital for ensuring a sustainable future and achieving Net Zero. Considering the recent DESNZ quarterly update of the renewable energy planning database, we have produced a consolidated summary of projects in the United Kingdom that have received planning permission. We will continue to release updates each quarter. Key Insights: Solar photovoltaic (PV) is scaling rapidly, driven by falling costs and strong investor appetite. In the last 12-months (ending Q2), 662 projects were approved, the third-highest 12-month period ending Q2 in 16 years, representing a record 4,831 MW of new capacity, with an average project size of 7 MW. Offshore wind, meanwhile, continues to demonstrate a mature, large-scale market with fewer but much larger developments. Six projects were approved in the last 12-months (ending Q2), also the joint third-highest year on record, delivering a record 6,803 MW of capacity and an average project size of 1,134 MW. In contrast, onshore wind growth remains constrained by planning and policy barriers, with 43 projects approved in the last 12 months (ending Q2), ranking 12th out of 16 years, and a relatively modest 915 MW of capacity, averaging 21 MW per project. Overall, total capacity for approved wind and solar projects in the last 12-months (ending Q2) reached a record 12,549 MW. While project numbers remain steady, the average scale of developments is increasing sharply, signaling that the UK’s renewable expansion is shifting from volume to scale, led by large solar and offshore wind projects.

Fuel Type Breakdown Britain’s electricity generation in September 2025 was led by wind, which contributed 35% of the energy mix, its highest September share in the past five years. This represented a 9 percentage point increase compared to September 2024 and outpaced gas generation by 13 percentage points, reinforcing wind’s continued dominance as Britain’s leading power source. Gas, meanwhile, supplied 22% of electricity in September 2025, marking its lowest September contribution in the past five years and half of the share recorded in September 2022. This decline highlights ongoing progress in reducing reliance on fossil fuels. Electricity imports accounted for 15% of Britain’s generation mix, consistent with September 2024 but remaining substantially higher than in 2021 (10%), 2022 (2%), and 2023 (11%). This sustained level reflects continued dependence on cross-border electricity flows to balance domestic supply. Nuclear power contributed 10% to the mix, down from 16% in September 2024 and below the levels seen in 2021 (16%), 2022 (15%), and 2023 (17%). This marks a continued period of reduced nuclear availability. Solar generation delivered 7% of Britain’s electricity in September 2025, its highest September share in the past five years and 1 percentage point higher than in September 2024. This record contribution highlights solar’s growing role in supporting Britain’s late-summer energy demand. Storage technologies supplied 2% of the mix, up 1 percentage point year-on-year and the highest September contribution in the last five years, signalling ongoing improvements in grid flexibility and battery capacity. Biomass contributed 7% to the mix, 1 percentage point lower than in September 2024 but still representing its second-highest September share in the past five years. Hydropower remained steady at 2%, consistent with levels in 2023 and 2024, and 1 percentage point above those recorded in 2021 and 2022. Coal remained absent from the generation mix, continuing Britain’s phase-out of coal-fired power. Zero-Carbon Sources & Carbon Intensity Zero-carbon sources, including wind, solar, nuclear, and hydro, delivered 67% of Britain’s electricity in September 2025, the highest share of any month on record and nearly 30 percentage points higher than in September 2021. This milestone reflects the steady structural shift toward a cleaner, more sustainable energy system. Carbon intensity for September 2025 fell to 112 gCO₂/kWh, the lowest September figure in the past five years and 45% below the level recorded in September 2021, underscoring substantial progress in reducing emissions from electricity generation. Over the longer term, the 12-month rolling average for zero-carbon generation remained at 52%, consistent with the previous period and indicating a short-term plateau in renewable expansion. In contrast, the rolling average carbon intensity rose by 8% to 133 gCO₂/kWh compared with the previous 12 months, signalling the importance of accelerating clean energy deployment to sustain downward momentum. Concluding Remarks September 2025 marked a strong month for Britain’s renewable generation, led by record wind output and growing solar capacity. Together, these sources helped deliver the highest September share of zero-carbon electricity in five years, driving carbon intensity to new lows. However, the decline in nuclear generation and continued reliance on imports highlight the need for further investment in domestic clean energy infrastructure and flexible technologies. While progress in storage and renewable deployment is evident, maintaining long-term momentum will be essential to achieving sustained reductions in carbon intensity and strengthening Britain’s energy resilience. Britain's Electricity Summary Charts

Fuel Type Breakdown Britain’s electricity generation in August 2025 was led by wind, which supplied 26% of the mix. While this marked a strong showing, it was notably down from 32% in August 2024. Despite the decline, it represented the second-highest August wind share in the past five years, underscoring the technology’s continued importance. Gas accounted for 23%, a sharp decline from August 2021 (36%), 2022 (48%), and 2023 (35%), though still above its 17% share in August 2024. These fluctuations reflect both progress in reducing dependence on fossil fuels and the current limitations of grid storage, underscoring gas’s continued role as a flexible backup source. Electricity imports accounted for 19%, their highest August share in the past five years and 5 percentage points higher than in August 2024. This growing dependence raises concerns about energy security and highlights the importance of strengthening domestic generation capacity and storage. Nuclear output fell to 11%, its lowest August contribution in the past five years, down 7 percentage points from August 2024 and 4 points below its levels in August 2021–2023. Biomass provided 8%, up from 7% in August 2024 and higher than its contributions in August 2021–2023, confirming its role as a reliable renewable source. Solar reached 10%, its highest August share in the past five years and 2 percentage points above August 2024, reflecting favourable summer conditions and incremental growth in installed capacity. Hydropower contributed 1%, broadly consistent with previous August levels. Storage matched its joint-highest August contribution at 2%, equalling 2024 and demonstrating the growing role of flexibility solutions in balancing the grid. Zero-Carbon Sources & Carbon Intensity Zero-carbon sources; wind, solar, nuclear, and hydro, accounted for 62% of Britain’s electricity in August 2025, the highest share for any August in the past five years. This milestone reflects steady structural progress in decarbonising the grid. Despite the strong zero-carbon contribution, carbon intensity rose to 123 gCO₂/kWh. While this was the second-lowest August value in the past five years, it was 48% higher than the record-low 83 gCO₂/kWh achieved in August 2024. The increase was driven by reduced nuclear and wind contributions alongside higher gas and import reliance. Looking at broader trends, the 12-month rolling average for zero-carbon generation declined slightly to 51%, down 1 percentage point from the previous 12-month period. This plateau indicates a temporary slowdown in renewable integration. Meanwhile, the rolling average carbon intensity rose by 6% to 134 gCO₂/kWh, emphasising the need to accelerate clean energy deployment. Concluding Remarks August 2025 saw wind retain its lead as the largest generation source, though its share dipped below 2024’s record levels. Gas rebounded from its unusually low contribution last year, while imports reached a five-year August high, highlighting ongoing vulnerabilities in energy security. Nuclear’s decline to its weakest August performance in five years further compounded these challenges. Nevertheless, the record-high share of zero-carbon sources for August, alongside growth in solar, biomass, and storage, demonstrates resilience and long-term progress in decarbonisation. Sustaining momentum will require renewed investment in renewables, reinforcement of grid infrastructure, and policies that strengthen domestic supply to ensure both cleaner and more secure electricity in the years ahead. Britain's Electricity Summary Charts

Scene Setting: A world on fire, a business community looking away In the wake of stark warnings from the Intergovernmental Panel on Climate Change (IPCC), the imperative for global nations and the businesses that operate within them to expedite climate action has never been more urgent. Yet, 2024 offered a sobering backdrop. More than 60 countries went to the polls, including major players like the US, UK, India, South Africa, Pakistan, and Russia, but climate concerns scarcely featured in manifestos. Global temperatures soared, making 2024 the hottest year on record, breaching the Paris Agreement’s critical 1.5°C threshold with an average global rise of 1.6°C. Instead of urgency, we saw political backtracking on commitments and rising public scepticism, as nationalist politics across the US, UK, and Europe reshaped climate discourse. The second Trump Administration has already reversed U.S. environmental policies put in place by the Biden Administration, Russia’s approach was deemed “critically insufficient” by the Climate Action Tracker, and developing nations like India and Pakistan are prioritising growth over emissions reduction. Against this political backdrop, businesses are increasingly echoing the same short-termism. Today in 2025, the focus has shifted toward low-value investments, short-term paybacks and high percentage RoIs, rather than the long-term investments required to align with net zero. The reality is clear: governments and businesses alike are kicking the climate can down the road at the very moment when decisive action is most needed. In our experience, this is a big mistake. Taking a long-term view on sustainability and particularly on decarbonisation offers significant long-term benefits for organisations, increases asset and company valuation and supports growth. The Rise of Short-Term Thinking in Business Business leaders have long understood that shareholder expectations and competitive pressures drive decision-making. However, what we are now seeing is a dangerous narrowing of focus. Instead of aligning investment and strategy with the multi-decade challenge of decarbonisation, many firms are prioritising projects with immediate financial returns, often within a 2-3 year window. This shift is particularly troubling because: The carbon reporting landscape is becoming more complex. Regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD), the UK’s Transition Plan Taskforce (TPT) framework, and the growing alignment with the International Sustainability Standards Board (ISSB) are forcing businesses to measure and disclose with greater transparency. Yet, disclosure does not equal action. The window for effective transition is closing. Science shows that emissions must peak before 2030 and fall by nearly half by 2035 to stand a chance of limiting warming. A short-term financial focus is incompatible with this timeline. Competitive positioning is at risk. While some businesses see sustainability as an “extra cost,” those that fail to transition risk stranded assets, supply chain disruption and reputational decline as customers and investors demand evidence of resilience. The Shift Away from Net Zero: Sentiment vs. Reality Across boardrooms in 2025, there is a noticeable cooling of enthusiasm toward net zero. Where once CEOs boasted about ambitious targets, today there is a recalibration, or in some cases, a retreat. Several factors underpin this shift: Economic volatility. Inflationary pressures, higher interest rates, national insurance increases and supply chain disruptions have led many firms to re-evaluate capital deployment. Long-term sustainability projects are being deferred in favour of “business continuity”. Investor pressure for short-term returns. Despite growing ESG funds and sustainable finance frameworks, mainstream investors remain focused on quarterly earnings. Executives are rewarded for near-term profit, not 2040 climate goals. Perceived political cover. With governments themselves slowing climate ambition, businesses feel less exposed when reducing or delaying their own commitments. This sentiment shift is dangerous. Net zero is not a PR exercise but a structural economic transition. Those companies stepping back today risk not only missing climate targets but also creating vulnerabilities within their operations and missing out on significant financial benefits. The Inadequacies of Short-Term Planning 1. Misaligned Investment Horizons Sustainability, by its very nature, requires investments that yield benefits over decades. Renewable energy infrastructure, enhanced electrical supply infrastructure, electrification of fleets, electrification of heat, circular economy design, or large-scale efficiency retrofits often require 7–15 years to fully deliver ROI. A focus on 2-3 year payback periods screens out precisely the projects needed to build resilience and future profitability. 2. Greenwashing Over Governance Short-termism often leads to “optics over outcomes.” Companies spend on branding, marginal improvements, or low-cost offsets instead of transforming business models. This erodes trust among investors, employees, and consumers alike. 3. Regulatory Lag Becomes Risk Exposure The complexity of carbon reporting and disclosure requirements is accelerating, not slowing. Businesses that fail to prepare for robust compliance regimes will face mounting costs, penalties, and reputational damage. 4. Failure to Secure Financing Sustainable finance is evolving. Lenders and investors increasingly evaluate climate transition plans and exposure to transition risks as part of their risk models. Companies unable to demonstrate credible long-term planning will face higher financing costs or lose access to capital entirely. The Case for Long-Term Sustainable Investment Insight from investment research consistently shows that sustainability and profitability are not mutually exclusive. In fact: Firms with strong ESG performance often deliver higher risk-adjusted returns. Studies by MSCI and Morningstar suggest ESG-aligned portfolios have outperformed benchmarks over the past decade . Company Valuation. Investing in on-site technology and infrastructure that will support carbon reduction and energy efficiency will increase asset values which in turn will support valuation multiples. Resilience pays. Companies that invested early in renewable energy and efficiency are now benefiting from reduced exposure to volatile fossil fuel prices. Investor sentiment is shifting. Even though short-term profit dominates headlines, global frameworks such as the UN COP26 initiated Glasgow Financial Alliance for Net Zero (GFANZ) are embedding climate criteria into long-term capital allocation. The lesson is clear: businesses that look beyond the immediate payback horizon will be better positioned to attract capital, manage risk, and capture growth opportunities. What Businesses Need to do to Reframe Their Approach To break away from short-termism, businesses need to embrace three core principles: 1. Transition Planning as Strategy Carbon disclosures should not be viewed as a box-ticking exercise. Instead, businesses should integrate them into strategic planning, aligning investment horizons, operational transformation and risk management around a clear net zero pathway. 2. Investment Criteria Must Evolve Payback periods need to be redefined. Businesses should apply broader lenses, incorporating avoided carbon costs, resilience benefits, brand equity, and future financing conditions. A total value return approach, not just a financial one. 3. Align Incentives with Long-Term Outcomes Boards and investors should tie executive compensation not just to annual returns but to delivery against long-term climate and sustainability targets.  The edenseven View: From Short-Term Gains to Lasting Value At its heart, the danger of short-termism is not just the failure to reduce emissions; it is the erosion of business competitiveness, resilience, and relevance. The narrative of “we cannot afford sustainability” is inverted. In reality, businesses cannot afford inaction. Our advice is clear: Set credible financial and environmental targets align ed with net zero. Reframe investment decisions with a long-term lens that includes financial, environmental, and reputational dimensions. Engage proactively with regulators and stakeholders to shape and anticipate compliance requirements. Embed sustainability into corporate culture, governance, an d reporting. Ensure that your data capture and reporting processes are robust, consistent, compliant and assured. By doing so, companies move beyond compliance and optics into a position of leadership, attracting capital, customers, and talent while securing long-term viability Conclusion: A Call to Leadership The world in 2025 is defined by contradiction. On one hand, the climate crisis accelerates, with record-breaking temperatures and increasingly complex carbon reporting frameworks. On the other hand, business sentiment retreats, focusing narrowly on short-term paybacks. This is unsustainable. Businesses that prioritise immediate returns over long-term resilience are missing an opportunity for long-term growth. By contrast, those that embrace sustainable investment as a core strategy will not only meet compliance requirements but also unlock profitable growth, resilience, and trust. Kicking the climate can down the road only makes the future more expensive and challenging for businesses, investors, and society alike. The choice is clear: chase shadows in pursuit of short-term gains, or invest in the foundations of lasting value . Whilst writing this insight article, I am reminded of a Greek Proverb: ‘A society grows great when old men plant trees whose shade they know they shall never sit in.’ If you are working in a sustainability role or hold a senior role within an organisation, and the topic of this insight article resonates with you, please come and talk to us at edenseven . We are a business of practical thinking individuals who have real life experience of working in and running businesses. We understand the pressures of hitting short-term targets, but also the huge benefits a well-structured decarbonisation strategy can have on a business. If you want to talk more, please give one of our team a call. Contact edenseven: phone: +44 1223 750335 email: info@edenseven.co.uk

Fuel Type Breakdown Britain’s electricity generation in July 2025 was led by gas, which accounted for 25% of the energy mix. While this marks a continuation of gas as a primary source, it represents its second-lowest July share in the past five years, signalling gradual progress in reducing reliance on fossil fuels. Electricity imports contributed 20% of the mix, their highest July share in the past five years. This increase, which placed imports ahead of wind generation, raises concerns about energy security and highlights the importance of bolstering domestic supply. Wind contributed 19% to the electricity mix, a 2-percentage point decline from July 2024 and 10 points below its July 2023 share, underscoring seasonal variability and the need for continued investment in grid flexibility. Nuclear provided 15%, down 1 percentage point year-on-year but consistent with its average July performance over the past five years, maintaining its role as a stable baseload low-carbon source. Solar generation rose by 2 percentage points year-on-year to reach 11%, its highest July contribution in the last five years. Biomass and storage also saw modest increases of 1 percentage point each, reaching 8% and 2%, respectively, both their highest July shares in the past five years. Hydropower remained stable at 1%, in line with its contribution in July 2024. Coal remained absent from the generation mix, continuing its phase-out completed at the end of 2024. Zero-Carbon Sources & Carbon Intensity Zero-carbon sources, including wind, solar, nuclear, and hydro, provided 48% of Britain’s electricity in July 2025. While up from 34% in July 2021, this figure was slightly below July 2023’s 52% and only a marginal improvement over the 47% recorded in July 2024, reflecting limited year-on-year progress. Carbon intensity rose to 129 gCO₂/kWh, a 13% increase compared to July 2024, driven by lower wind output and increased gas and import use. Looking at broader trends, the 12-month rolling average for zero-carbon generation held steady at 51%, unchanged from the previous 12-month period. This plateau suggests that the pace of renewable integration has temporarily slowed. The rolling average carbon intensity rose slightly to 131 gCO₂/kWh, up from 129 gCO₂/kWh in June, reinforcing the need for continued decarbonisation efforts. Despite these short-term challenges, the rolling carbon intensity remains the lowest seen in the past five years, reflecting sustained long-term progress. Concluding Remarks July 2025 saw gas return as the leading fuel source, while wind’s contribution fell below recent seasonal norms. Rising imports and a modest increase in carbon intensity signal emerging challenges around energy security and clean generation. Nevertheless, gains in solar, biomass, and storage demonstrate resilience within the zero-carbon segment. The continued absence of coal and stable nuclear output reinforces the structural transition underway. To maintain momentum, renewed focus is needed on accelerating renewable deployment, strengthening grid flexibility, and supporting domestic capacity. These are critical steps to ensure consistent progress toward a low-carbon energy future. Britain's Electricity Summary Charts

Fuel Type Breakdown Britain’s electricity generation in June 2025 was led by wind, which contributed 31% of the energy mix, its highest June share in the past five years. This marked a 6-percentage point increase compared to June 2024 and was double the share recorded in June 2021, reinforcing wind’s growing dominance in the summer energy mix. Gas accounted for just 17% of electricity generation, its lowest June share in the past five years. This represented a 2-percentage point decline from June 2024, and a 50% drop compared to June 2021, highlighting continued progress in reducing reliance on fossil fuels. Solar generation rose by 2 percentage points year-on-year to reach 12%, its highest June contribution in the last five years. Biomass and storage also saw modest increases of 1 percentage point each compared to June 2024, contributing 8% and 2%, respectively, indicating incremental gains in both dispatchable renewable supply and energy flexibility. Nuclear contributed 15% to the mix, down 2 percentage points from June 2024 but consistent with its average performance over the past five years, maintaining its role as a stable, low-carbon baseload source. Hydropower remained steady at 1%, while coal remained absent from the generation mix for the second consecutive June, following its full phase-out. Electricity imports fell to 15%, a 4-percentage point decline from June 2024. While still notable, this decrease points to an improving balance between domestic generation and external supply. Zero-Carbon Sources & Carbon Intensity Zero-carbon sources, including wind, solar, nuclear, and hydro, delivered 61% of Britain’s electricity in June 2025, the highest June share in recent years and an 11-percentage point increase from June 2024. This increase in clean generation contributed to a further decline in carbon intensity, which fell to 98 gCO₂/kWh, 1% lower than the same month last year. Looking at broader trends, the 12-month rolling average for zero-carbon generation held steady at 51%, consistent with the previous 12-month period. Meanwhile, the rolling average carbon intensity dropped to 129 gCO₂/kWh, its lowest level in the past five years and 4% below the level recorded a year earlier, signaling sustained, long-term progress in grid decarbonisation despite short-term variability. Concluding Remarks June 2025 marked a significant step forward in Britain’s clean energy transition, with wind reaching its highest June share in five years and solar achieving a new seasonal peak. These gains, alongside growth in storage and biomass, pushed zero-carbon sources to a five-year high for the month and drove carbon intensity to one of its lowest recorded levels. The continued decline in gas and the absence of coal underscore the pace of decarbonisation. However, the slight drop in nuclear output, modest hydro performance, and the ongoing reliance on imports highlight areas where further progress is needed to strengthen domestic energy resilience. Sustained investment in renewable generation, grid flexibility, and energy storage will be key to building on this momentum and ensuring continued reductions in carbon intensity across all seasons. Britain's Electricity Summary Charts