Many medium-sized companies want to reduce energy and CO₂ – not because of regulation, but because energy costs, price volatility and customer requirements are noticeably increasing.
Decarbonisation simply means: using energy more efficiently, reducing dependence on fossil fuels and building own renewable solutions. For SMEs this is primarily an economic advantage: lower costs, higher resilience and better financing conditions.
What does decarbonisation actually mean?
Decarbonisation comprises four pragmatic areas:
- Reduce energy consumption
through more efficient machines, better settings and process optimisation. - Use energy differently
e.g. recover waste heat from machines, ovens or compressors. - Generate own energy
for example with photovoltaics, heat pumps or solar thermal energy. - Make consumption transparent
with digital meters, simple dashboards and clear KPIs.
This turns decarbonisation into an instrument of modern cost and business management.
Why is this a success factor for medium-sized companies?
- Energy costs decrease permanently
- Planning reliability increases because fossil price fluctuations have less impact
- Better credit terms, as banks take CO₂ intensity into account
- Key accounts demand CO₂ data and prefer efficient suppliers
- Higher employer attractiveness, as future-oriented topics are a differentiating factor
Decarbonisation is therefore a genuine competitive factor – not just a sustainability topic.
The most important levers – with examples from SMEs
Example 1: Metal processing (SME)
Heat recovery + photovoltaics
A metal processing company installed a heat recovery system.
Previously, the waste heat from the machines was released unused – now it heats the entire hall.
- Investment: approx. €120,000
- Savings: around €36,000 per year
- ROI: just under 3 years
In addition, a PV system was installed on the hall roof.
During production, it covers 40–60% of electricity demand; at weekends and in summer surplus is fed into the grid and remunerated.
Effect: significant cost reduction, additional revenue, high independence from energy prices.
Example 2: Service company
IT modernisation and cloud migration
A service company modernised its IT: old servers were replaced, systems consolidated and partially migrated to an energy-efficient cloud. Numerous legacy applications and unnecessary background processes were shut down.
- Energy consumption of IT: –20%
- Investment cost: low
- Additional benefits: more stable systems, less maintenance, higher data security
Many savings resulted simply from clean-up and better settings.
Example 3: Bakery with branch network
Waste heat + PV + load management
A regional bakery combines several levers:
- Waste heat from ovens is used for hot water
- Branch roofs were equipped with PV
- A load management software reduces expensive power peaks
Result:
- –22% energy costs in the first year
- significantly more stable operating costs
- PV covers 30–50% of electricity demand per branch
Example 4: Plastics processing
Compressed air – the hidden cost driver
A plastics processor checked its compressed air system and found leakages, outdated compressors and inefficient settings.
After optimisation and heat recovery from the compressor:
- Power savings: 15–25%
- Heating for the workshop: almost free of charge
- ROI: often < 2 years
The pragmatic starting point – in three stages
Stage 1: Quick wins
Achieve impact immediately without major investment.
- Identify the 3–5 main consumers
- Install digital electricity meters
- Reduce stand-by consumption
- Check compressed air leakages
- PV potential analysis
- Clean up and optimise IT infrastructure
Typical effect: 5–15% savings.
Stage 2: Medium-term measures
Targeted investments with good ROI.
- Heat recovery
- Compressed air modernisation
- LED + sensors
- PV system
- Optimisation of heating and ventilation
- Load management system
Typical ROI: 2–5 years.
Stage 3: Long-term transformation
Strategic positioning for market and financing.
- CO₂ strategy including target pathways
- Modernisation of machinery
- Renewable heat (heat pump, solar thermal, biogas)
- Integration of the supply chain
- Integration of energy and CO₂ data into corporate management
What happens if you do not act?
Companies that wait bear measurable economic risks:
- Permanently higher energy and operating costs
- Risk of losing customers (CO₂ data will become mandatory)
- Worse credit conditions
- Competitive advantages for rivals (lower unit costs)
- Lower employer attractiveness
- Increasing compliance risks due to missing data
Not acting today has a price.
Conclusion
For medium-sized companies, decarbonisation is one of the fastest and economically most sensible measures to reduce costs, mitigate risks and secure market opportunities. It succeeds step by step, pragmatically and without oversized mega-projects. Companies that start early gain clear advantages – today and in the future.
Furthe article
Basis article: ESG as a success factor
Author
Julia Wlasak-Eisenberger
Master Global Studies & MBA Sustainability Management
Julia has many years of sustainability expertise at universities (including a focus on education for sustainable development) and in companies (sustainability, climate and education strategies). She is a lecturer at the University of Salzburg.
Questions?
