Global net zero targets are becoming increasingly detailed, with clear, regimented action plans emerging alongside long-term goals. One of the most significant of these is the UK Government’s net zero by 2050 commitment, which is shaping a wide range of policies across the country.
One major policy likely to change in 2026 is MEES (Minimum Energy Efficiency Standards) for commercial property. At present, the minimum required energy performance level for commercial buildings is E, but the government is consulting on strengthening these standards to C by 2027 and then B by 2030. This policy shift is part of wider regulatory efforts to reduce carbon emissions and improve building performance across the commercial estate.
The scale of the challenge is considerable. Recent research from the British Property Federation (BPF) shows that approximately 83 % of commercial buildings in seven major UK cities currently fall below a B rating. Only around 2% of commercial buildings have an EPC rating of A, with another 15 % rated B, leaving the vast majority below the proposed target threshold. The cities analysed include London, Birmingham, Bristol, Leeds, Liverpool, Manchester and Newcastle, highlighting the widespread scope of the retrofit task. Research link here.
Because EPC ratings are calculated using specific measurement methods and software, there are multiple routes that property owners can take to improve their scores. Having the right guidance and quality data is essential, as changes in one area of a building can materially affect outcomes in another. For example, investing in improved insulation can influence the return on investment of a new heating system, so it’s important to view the building holistically to determine the most cost-effective and efficient improvement strategy.
Commissioning a comprehensive building survey, rather than simply updating a standard EPC certificate, can save both time and money in the long run. A full assessment not only identifies fabric and system improvements, it also highlights behavioural or operational changes that can deliver immediate reductions in energy use and operating costs, potentially funding some of the larger capital works.
The expected changes to MEES will impact a wide range of stakeholders, including:
While there is risk for businesses that fail to comply with future MEES requirements, there is also substantial evidence that more energy-efficient properties deliver stronger financial performance. According to CBRE’s latest Sustainability Index, energy-efficient commercial assets in the UK have exhibited stronger capital growth and total returns compared to less efficient properties. For example, energy-efficient assets saw total returns of 16.2 % compared with 11.2 % for inefficient assets since the Sustainability Index began tracking performance. Research link here.
This means that investment in improving energy performance not only helps property owners comply with future regulation, it can also enhance asset value and deliver better returns over time — making energy efficiency both a risk-mitigation strategy and a value-enhancing investment.
At R2G, we support property owners in identifying the best course of action to stay aligned with MEES requirements, while also finding solutions that go beyond compliance to reduce operating costs. We help you gather the information you need to make informed decisions and develop a roadmap of improvements that aligns with your wider business goals.
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