Five Reasons Why You Need a Business Energy Strategy

For many businesses, energy has now become a strategic issue. Businesses are recognising the importance of energy as a brand opportunity as well as just a commodity, and are starting to plan for this through a comprehensive business energy strategy.

For forward-thinking businesses, the pursuit of zero-carbon emissions and identifying energy challenges are covered in all areas of strategy- from actions to targets and budgets.

Executing a well thought- out business energy strategy has various benefits for businesses. Still unsure if it’s worth the time? We’ve put together a list of five reasons why a business energy plan is key for your company.

 

A Business Energy Strategy helps with compliance

In 2019, the UK government was the first to pass laws committing to end its contribution to global warming. To do this, the UK requires all greenhouse gas emissions brought to net zero by 2050.

Simply put, by 2050, there will be a balance between greenhouse gas emissions produced by the UK and the total emissions  removed from the environment.

Businesses account for around 18% of all carbon dioxide emissions in the UK. This means it would be impossible to reach net-zero targets without their participation.

More rigid regulations are coming into play for businesses ahead of the 2050 goal. The government is already rolling out mandatory operational rations, such as Display Energy Certificates (DEC) for commercial buildings.

Businesses could incur serious financial punishments if they don’t commit to reducing their carbon footprint. Those who take action with a business energy strategy will stead themselves in a much better position.

The future is renewable

Solar, wind, and other renewable technologies are proving to be a growing- long-term investment for many businesses.

According to Bloomberg New Energy Finance (BNEF), half the world’s energy is set to come from wind and solar by the year 2050.  Across Europe, the shift away from fossil fuels will be even greater.

87% of energy is expected to be a mix of wind and solar.

New solar and wind installations are being built at a vast rate. Businesses now want their future energy offerings to look to the future. This means putting their money towards cleaner, greener investments.

Plans like our Pure Green Energy allow businesses to invest in wind energy that is entirely traceable to the source.

A top cost for business

Energy will always remain a vital cost for businesses.

A business energy plan could save up to 30% of energy costs within three years. Many are making smarter steps to cut their energy consumption, including:

Checking equipment- Checking older equipment that needs replacing or can be removed altogether.

Building management and control- Installing systems that monitor and control a building’s electrical systems. This ensures that buildings are their most energy-efficient.

Considering lighting- Focusing on more energy-efficient fixtures and fittings.

Electric vehicles- Consider implementing EV charging stations. Be an early adaptor of the electric charging revolution. We can help support your business’s EV charging goals and talk you through the process.

Reviewing your current energy contract- Make sure you know the terms of your current energy contract. You should know if you could benefit from a cheaper supplier.

Staff engagement and retention

In a growing millennial workforce, we’re seeing a generation who values companies for their stance on social and environmental issues. Millennials seek employment with a business that takes a firm stance in these areas.

If you’re looking to recruit and maintain skilled workers, including an energy business strategy to your list of key issues shows you have sustainability at the heart of your long-term goals.

But putting together a strategy shouldn’t mean just lip service from your organisation. A lack of focused, intentional engagement is where many sustainability efforts grind to a halt. The support of your plan must start from the top. When senior management buys in, it’s easier to make this a long-term priority throughout a business.

Large changes will take time. Focus on simple, yet effective wins. Consider changing the lighting in your offices, ensuring equipment is off when not in use, and going paperless where possible. These are much easier to achieve in the short-term. They also provide a great case for long-term changes in the future.

Better for your brand reputation

While the financial benefits of energy efficiency are huge, becoming more energy-efficient can also improve your business’s reputation.

Having an energy strategy in place can improve relationships with consumers, suppliers as well as stakeholders.

If your business is in the B2C market, an international study by Unilever has revealed that a third of consumers (33%) are now choosing to buy from brands that they believe are doing social and environmental good.

If your business hasn’t already got a strategy in place, it’s time to consider creating one that highlights your company’s environmental commitments.

Benefits for your business

While business energy efficiency is a long-term- goal, the benefits make it worthwhile.

Using less energy can reduce your business’s energy costs. But an effective energy efficiency strategy can help protect your business against volatile energy markets, meanwhile improving your brand’s reputation and employee productivity. These are all benefits that can help save the planet.

If you’re looking to explore your options, such as getting an energy business quote and seeing where you can save, our team can assist you in getting a quote.

Get a quote or chat with our friendly experts today.