Smart energy management has many benefits. It not only cuts carbon emissions to help businesses stay one step ahead of environmental compliance, it cuts costs too. The energy surveys we provide to businesses typically identify ways to cut energy use, and in turn, energy costs, by 20% to 30%. Moreover, there are a number of simple, ‘low-cost and no cost' ways for businesses to make great savings, typically around 10%, from their annual energy bills.
Simple, ‘low-cost and no-cost' measures
Many organisations waste vast amounts of energy without even realising it. For example, a business could cut its lighting costs by as much as 15% just by making sure the lights are turned off in rooms and corridors that aren't being used. This can also be achieved by using sensors that can turn off lights automatically when not required. As lighting typically accounts for around 20% of energy costs, simply using energy saving bulbs can make significant savings by using 75% less energy than a standard bulb.
A single computer and monitor left on 24 hours a day will cost over £50 a year. Multiply this throughout the whole organisation and you are looking at huge amounts of money wasted daily. Switching machines off out of hours and enabling standby features could reduce your per-PC energy costs by £15 a year and prolong their lifespan. Switching your employees work stations to laptops can also make a difference as laptops are designed to be as energy efficient as possible, using only around 10% of the energy of a desktop computer.
Keeping a closer eye on the heating and cooling systems within the business is also an easy way to make energy savings. In the winter excessive heating can be a major cost burden for businesses, so during the milder months try to keep your thermostat at 19°C. By reducing your thermostat by just one degree, heating costs can be reduced by 8%. In the summer, it isn't uncommon for businesses to find that their energy bills double because of air conditioning.
Many organisations waste vast amounts of energy without even realising it, which gradually chips away at the profit margin
Being energy efficient can have a hugely positive effect on corporate reputation. It shows current and prospective employees, customers and other stakeholders that you are a responsible business and playing your part in the fight against climate change. As consumers become increasingly environmentally aware, businesses that can prove they have measured their emissions and are managing reductions year-on-year can seize competitive advantage by marketing their green credentials.
A good example of improving the reputation of a business is shown by Chris Harrop, Group Marketing Director of Marshalls, one of the UK's leading manufacturers of hard landscaping products.
"With the CRC Energy Efficiency Scheme now in place, an increasing number of businesses will be required, by law, to reduce their carbon emissions or pay a fine for non-compliance," says Chris. "There's talk of some businesses just paying the CRC tariff and continuing to burn CO2. True, for some that may be more cost effective for now, but the tariffs will only get steeper.
In order to identify the top money and carbon saving opportunities, Marshalls took an in-depth, on-site survey, conducted by an accredited expert from the Carbon Trust. The process of a Carbon Trust survey is simple. The surveyor assesses all major aspects of energy consumption from heating, lighting and IT to core plant machinery and identifies ways to cut energy use, sometimes by as much as 30%.
Encouraging staff to buy into green measures
Staff can be a valuable resource in driving energy saving within a business. Chris Harrop of Marshalls vouches for an all-encompassing approach and encourages businesses to support their staff in their green endeavours.
"You'd be surprised how many staff adopt the sustainability cause given the opportunity. We now have drivers competing with each other to see who can drive more efficiently, with help from our carbon-reduction route planning software," he says.
Businesses need to build an energy efficiency action plan and make sure employees are behind the scheme. There are numerous, simple, ‘low-cost and no cost' ways for businesses of all sizes to make improvements, but by appointing a ‘Green Team' to draw up a clear energy management policy for employees to stick to, firms can ensure there is responsibility within the organisation for driving improvements and cutting costs. By running an open door policy you'll also enable staff on the ground to make suggestions and buy in to your energy efficiency goals.
What's your carbon footprint?
Another way to understand the impact your business has on climate change is by considering carbon footprinting. Our recently launched guide, Carbon Footprinting: The next step to reducing your emissions, clearly explains how to manage and reduce carbon emissions by understanding the impact of a business's activities or products.
The only accurate way to measure the carbon footprint of a product is to do so through its whole lifecycle, from cradle to grave. Every phase of the product's life from manufacture and distribution to use by consumers and disposal contributes to its carbon footprint and needs to be taken into account.
In conclusion, a common response from businesses that have implemented energy efficiency advice is that they wished they had done it sooner. Every firm is busy right now and finances are undoubtedly tight, but by dedicating resources to energy efficiency businesses can shave significant amounts off their bottom line, improve their corporate reputation and place themselves at the forefront of the low carbon economy.
