James Taylor, carbon reduction specialist 

The hospitality and brewing sectors are at a crossroads. Amid rising costs, shifting consumer behaviours, and ongoing staffing challenges, businesses must now tackle another monumental task: meeting the UK's increased carbon reduction targets. UK prime minister Sir Keir Starmer announced in November 2024 that he has committed to reducing carbon emissions by 81%. Without these reductions, the sector will struggle as extreme weather brought on by climate change affects supply chains, consumer demand and pricing. Reducing emissions and supporting regenerative suppliers are necessary to build resilient, future-fit businesses. The path ahead has its challenges, but it also offers opportunities for transformation. 

Challenges the Hospitality and Brewing Sectors Face 

Adding increased carbon reduction to an already overwhelmed sector is no small ask. Teams are juggling skyrocketing costs, dwindling footfall, and shifting spending patterns. Many businesses lack the expertise, resources, and transparent data to make informed decisions about their carbon emissions and climate impact, and inconsistent government policies exacerbate the struggle. 

Potential carbon taxes, such as those on meat and dairy, could also deepen financial pressures. While consumers can't shoulder every cost increase, I have heard that many businesses are grappling with how to absorb or offset these expenses without further eroding margins. 

Efforts to cut emissions in areas like energy, packaging, and waste management are hampered by external barriers. Despite the sector's substantial progress—driven by necessity— I have spoken to many operators who often find their ambitions constrained by factors beyond their control, such as inadequate infrastructure and logistical challenges. 

Opportunities for Cost Reduction 

Carbon reduction doesn’t have to mean financial strain. In fact, it can unlock significant cost savings. We have seen many operators save thousands of pounds per site by identifying energy waste and implementing simple operational changes, such as using data to inform staff behaviour.  

Sustainable sourcing and supply chain optimisation, while resource-intensive, are strategic moves that can pay off in the long term. Collaboration across the sector can amplify these efforts, encouraging market growth for sustainable products. 

Energy-efficient equipment and renewable energy are critical. On-site generation offers long-term savings, while power purchase agreements (PPAs) provide price stability. Moving beyond traditional capital cost assessments to life-cycle costing can help businesses see the bigger picture: lower maintenance costs, reduced downtime, and greater operational efficiency. 

Some of the simplest low-cost reductions are often the quickest and easiest to implement, such as controlling volumes – not just in energy but also consumables, water, and spoiled stock. These tactical levers often galvanise a culture of further improvements, making harder strategic changes more palatable. 

Preparing for a Carbon-Conscious Future 

To stay ahead, businesses must extend their planning horizons beyond 3-5 years. Carbon and climate change considerations should sit alongside price, quality, and availability in procurement decisions.  

Taking small, logical steps now—such as reducing waste, conserving energy, and streamlining operations—can help soften the blow of future regulatory changes. 

Leadership in the sector is already preparing for these shifts. Scenario modelling and risk management are becoming the norm.  

However, the industry’s individual efforts will only go so far. True systemic change demands collaboration. Currently, 35% of the sector actively engages in collective action with the Zero Carbon Forum; the rest must follow. 

Balancing Sustainability with Consumer Expectations 

Sustainability isn’t just a responsibility—it’s an opportunity. While research suggests consumers value sustainable practices, their choices are still heavily influenced by price, quality, and convenience. In my experience, decisions about a family night out or a birthday treat aren’t led by sustainability factors – it’s still about value for money, taste or experience.  

Most of the time customers don’t want to go out of their way – whilst they support sustainability, they want it to be seamlessly integrated into their experience. Businesses can use this as an opportunity to resonate with their customers by being transparent about their actions and making sustainable behaviours simple without added costs or complexities. 

Someone once told me, “Sustainability is a right, not a privilege.” This ethos must guide the sector’s approach, ensuring sustainability is embedded into every operation without becoming a premium add-on. 

The way forward 

The journey toward carbon reduction will not be easy, but it is necessary. By reframing environmental risks as opportunities and prioritising collaboration, the hospitality and brewing industries can lead the way.  

Together, we can create a more sustainable future that helps businesses cut costs, build their brand and become more resilient in the face of change. 

Ready to take the next step? Get in touch to learn how we help the hospitality and brewing sector turn today’s challenges into tomorrow’s opportunities.