Commercial Retrofitting in London: from Legacy to Net-Zero Future
Tuesday 16 September
Summary
This report explores the state of commercial retrofitting in London. ‘Commercial retrofitting’ refers to the systematic upgrading of existing commercial buildings to improve energy efficiency and reduce carbon emissions.
The report reveals low uptake of commercial retrofitting amongst businesses in London despite its critical role in achieving net-zero goals. It highlights barriers such as finance, regulation, and skills shortages, especially for SMEs, and offers strategic recommendations to accelerate retrofit delivery through policy alignment, workforce development, and innovative funding models.
Key findings
• Only 28% of firms have a decarbonisation plan; 72% have none.
• 15% have already retrofitted their premises, while 25% plan to do so.
• 22% of firms cite lack of finance as the main barrier to not retrofitting. Awareness of funding is low.
• Larger businesses are significantly more proactive about retrofitting than micro and small firms, which make up 97% of London’s business base.
• The most common retrofit measures include energy efficiency upgrades (60%), on-site renewables (36%), and mechanical and electrical system improvements (36%). However, uptake is uneven, and SMEs face the most significant barriers to participation.
About the research that informed this report
To capture the current business landscape surrounding retrofit activities, LCCI partnered with market research consultancy Savanta to conduct two waves of online surveys: from July 30 to August 30, 2024, and again from October 18 to November 17, 2024. In total, 530 and 520 London businesses participated in both waves, respectively. The data was weighted to represent all London businesses by company size and broad industry sector.
