Stranded Assets Explained: What They Are and Why They Matter

Have you ever wondered why some commercial buildings, despite appearing functional, struggle to attract tenants or buyers? In many cases, it’s because they’ve become stranded assets, but what are stranded assets?

With rising investor pressure, regulatory change, and the UK’s ambitious drive toward net zero carbon, outdated infrastructure has become a growing financial and environmental risk. In fact, 70% of commercial buildings in London risk becoming stranded by 2030 if they don’t improve energy performance.

In this blog, we break down what stranded assets are, why they matter for UK businesses, and how energy-efficient HVAC upgrades provided by Meridian Cooling can protect your building and help you navigate the road map to net zero.

What Are Stranded Assets?

Perhaps you’ve heard the term bandied around before but aren’t familiar with what it means. Not to worry, we’ll begin by answering the question, ‘what are stranded assets?’. In simple terms, stranded assets are buildings or systems that have lost their value due to changes in legislation, technology, or market expectations.

A common example is an ageing, fossil-fuel-based HVAC system that consumes too much energy and fails to meet new efficiency standards. Another would be an inefficient plant room locked into high emissions with no route to decarbonisation.

As the push for HVAC carbon reduction and low-emission systems grows, such outdated infrastructure is no longer fit for purpose.

Stranded assets don’t just sit idle; they become a liability. With every new policy update or tenant demand for greener operations, these assets fall further behind.

Why Stranded Assets Matter for UK Businesses

For businesses across the UK, stranded assets present both a technical and financial obstacle. Running inefficient systems increases operational costs, while failing to meet environmental benchmarks can limit access to finance and insurance coverage.

The UK net zero strategy is accelerating change across the commercial and industrial sectors. This means outdated infrastructure can leave businesses exposed. Investors and shareholders are also applying pressure. Sustainable practices and energy efficiency for businesses are now seen as indicators of long-term value.

Buildings that don’t comply with modern standards are not just inefficient; they’re commercially unattractive. This affects rental income, valuation, and even resale opportunities. The longer businesses delay upgrades, the harder and more expensive it becomes to catch up.

Common Examples of Stranded Assets in Commercial Buildings

Stranded asset risks are widespread, especially in sectors with high energy use. Common examples include:

• HVAC Systems Nearing End-of-Life: Old systems consume more energy and emit more carbon, making them incompatible with net zero goals.
• Energy-Inefficient Plant Rooms: These setups often rely on outdated controls, poor insulation, and oversized boilers.
• Systems Incompatible with Low-Carbon Goals: Anything running on fossil fuels or without smart monitoring tools becomes harder to justify in a net zero carbon future.

Left unaddressed, these assets will continue to drain resources and reduce property competitiveness.

How Energy-Efficient Systems Help Avoid Stranded Assets

Futureproofing Through Smarter Infrastructure

Upgrading early helps avoid the spiral of declining value, rising energy bills, and failed compliance audits. By planning for tomorrow’s standards today, businesses retain control and flexibility.

Cost Savings and Compliance

Energy-efficient HVAC systems not only reduce monthly running costs but also make it easier to hit carbon benchmarks. That means fewer penalties, lower insurance premiums, and increased eligibility for sustainability-linked funding.

Support from Government and ESG Advantages

The UK government offers support schemes for carbon-cutting initiatives, while ESG (Environmental, Social, and Governance) frameworks reward forward-thinking operations. When you cut carbon emissions in the UK, you also gain strategic advantages with stakeholders, employees, and customers.

And let’s not forget the reputational boost. Whether you’re applying for sustainability certifications or meeting corporate pledges, smart HVAC upgrades go a long way in demonstrating action, not just intention.

When aligned with the UK net zero strategy, your building becomes an asset, not a risk.

Meridian Cooling’s Approach to Carbon-Cutting HVAC Solutions

At Meridian Cooling, we specialise in helping businesses transition away from outdated, carbon-heavy systems. Our engineers design and install HVAC solutions that reduce emissions, increase efficiency, and support both operational and sustainability goals.

With our road map to net zero, we guide you through every step, from system audits and tailored upgrades to long-term maintenance, to ensure your building stays compliant and competitive.

Our range includes air source heat pumps, high-efficiency air conditioning, ventilation systems, and smart climate control technologies. All are backed by our expertise, competitive pricing, and commitment to long-term performance.

Stranded assets don’t need to be your future. Let us help you stay ahead of the curve.

Secure Your Future with Energy-Smart Upgrades

Talk to Meridian Cooling today about energy-efficient systems that cut carbon, reduce costs, and support your net zero carbon journey. Whether you’re managing a single facility or an entire portfolio, we’re here to help you stay compliant, competitive, and climate-ready.

We’re MCS-accredited, and every one of our engineers is certified in the safe handling of refrigerants.

Call us on 01202 658254 or use our contact form to start the conversation. The sooner you act, the more you’ll save.