ENERGY MANAGEMENT pped Business Opportunity
reduce greenhouse gas emissions in such a way are numerous. Many low cost energy efficiency solutions have extremely quick payback periods and require relatively little upfront capital expenditure, e.g. lighting controls, variable speed drives and voltage optimisation units. The Carbon Trust estimates that a typical large organisation can cut 15% of its annual energy bill through the use of such simple energy efficiency solutions alone. And in many cases these savings may be significantly higher.
A GREENER BUILDING STOCK A key component of emission reduction strategies is the ability to de- carbonise our building stock. And if, as a nation, we are to cut national greenhouse gas emissions by 80% by 2050, all new and existing buildings will need to become zero carbon over the next 40 years. Promisingly, signs of progress are now starting to emerge for property developers and landlords willing to invest in sustainable real estate. The report’s findings suggest that investment in green building improvements, like energy efficiency and on-site renewable energy generation, can currently raise the value of a property by between 7.5% and 8.2% (see table below).
through reduced energy bills. And landlords have long been unwilling to make this investment themselves for fear that the benefits of cheaper energy bills will simply be passed on to tenants. To solve this, Enhanced Capital Allowances (ECAs) could be made transferable between tenants and landlords, including tax-exempt property funds. By bringing tax-exempt property funds into the scheme, investment in energy efficiency improvements in commercial property holdings could be dramatically increased, resulting in substantial CO2
UK’s non-domestic building stock.
GREENHOUSE GAS REPORTING Greenhouse gas reporting is a crucial component of emissions reduction strategies which enables businesses to identify opportunity to eliminate emissions, whilst demonstrating environmental performance to consumers and shareholders. The introduction of a mandatory reporting requirement for large companies from 2012 would facilitate this, and serve to drive investment in energy management skills.
SKILLS IN ENERGY MANAGEMENT During times of financial constraints, raising the profile of energy efficiency at senior management level becomes difficult. The
challenges faced by energy managers and sustainability professionals in making the case for investment in sustainable built assets should not be underestimated. So to help push the business case for more environmentally sound corporate policies, large companies should have an ‘energy
THE BENEFITS OF SUSTAINABLE BUILDINGS
Nevertheless, the trend towards shorter leases in the commercial property sector has made it difficult for tenants to recover investments in energy efficiency
champion” on their board. Businesses also need to support upfront investment in the skill sets required by these roles and better promote the benefits of energy efficiency. Energy managers should increasingly be recognised as key agents of corporate sustainability and have their voices heard
throughout an organisation. SMES
SMEs
account for 45% of total business energy
consumption and employ nearly 60% of the private sector
workforce. But these
emission reductions in the
organisations often lack both the capital and information
necessary to reap the rewards of improved energy efficiency. If government targeted SMEs under the forthcoming Green Deal (a scheme designed to provide a step- change in the roll out of energy efficiency packages) SMEs could foster new partnerships with organisations such as banks, trade associations, and the Government Office of Commerce. This would not only improve their
environmental performance, but also save both cash and carbon.
AN ENERGY EFFICIENT FUTURE With the appropriate government incentives and frameworks for support, businesses of all sizes can be encouraged to start cutting emissions from their products, services and buildings. And with the Green Deal set to roll-out basic energy efficiency packages to the UK’s homes, a similar opportunity exists to enact positive change in businesses and the commercial property sector. The reward will be a market that recognises the central role that energy efficiency has to play in the transition to a low carbon economy – one in which it is no longer culturally or financially acceptable to throw away energy. As Lord Teverson, Liberal Democrat
Peer and Co-chair of the inquiry explained: “With government leadership, businesses across the UK can increase their profit margins, while securing a low- carbon and fuel-secure future for the nation. Now, more than ever before, we must reduce the amount of carbon we emit as a country – reducing energy consumption across the private sector is in both the private and public interest.”
www.policyconnect.org.uk
SUSTAINABLE FM | MARCH 2011 |13
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