Why It Pays To Have An Informed Approach To Net Zero
Many organisations are facing increasingly challenging times, particularly when it comes to navigating the uncertainty we’ve seen in the wholesale energy markets over the last two years. Indeed, according to our latest Business Energy Tracker report, energy is the top risk that businesses are facing for the second year in a row, and it is now a board-level issue for more than 90% of the large organisations we surveyed.
In October 2022, gloomy forecasts resulted in an unprecedented intervention from the government in the form of the Energy Bill Relief Scheme (EBRS) to help businesses navigate the winter, a six month initiative that was replaced by the Energy Bills Discount Scheme (EBDS) on 1st April 2023. While it is welcome that businesses are still receiving some support, for most - i.e. those that are not classed as ‘Energy and Trade Intensive Industries’ - it will be at a much lower level.
As a result, during times when competition for capital investment is high, many organisations will be reassessing whether investing in sustainability measures is the best use of their budget.
However, we would argue that the need to manage energy in the most effective way has never been more important. That is why it pays for facilities managers to have an informed approach to net zero.
Keeping A Focus On Net Zero
Encouragingly, the Business Energy Tracker showed that businesses are becoming increasingly proactive when it comes to managing energy risk, with net zero and sustainability investments recognised as a crucial way to take control and mitigate the risks posed by the volatile energy market.
In fact, sustainability measures are now the top investment priority for businesses - up from second place in 2022 - with almost two thirds (60%) of respondents saying it would be their number one priority this year. It is clear that businesses recognise the increased resilience these measures can bring, while also contributing to their overall decarbonisation targets.
Resilience is the key word here. When asked about the main benefits to their business from a proactive approach to net zero, greater resiliency through saving money and carbon retained the top position, with almost half (48%) of organisations saying this was the main benefit, up from 33% in 2022.
So, what steps should facilities managers take to ensure that any sustainability measures implemented achieve the best results and maximum return on investment?
1 Get to know your energy data
Understanding exactly where and how you are using energy is crucial to reducing both costs and carbon. For example, a sophisticated energy management system will help you monitor power and gas consumption throughout your organisation, and the related emissions. The Business Energy Tracker revealed that the use of smart energy management tools saw an increase compared to 2022, with 56% of businesses implementing this measure, compared to 48% last year.
Depending on the nature of your business, sub-metering can also help to provide more granular detail about specific energy uses, such as machinery, lighting, or temperature control.
2 Plan your carbon reduction strategy
When you have a greater understanding on how and where your energy is used, and the primary sources for your carbon emissions, you can make an informed decision about your energy management and carbon reduction strategy.
There are tools available that can help your business test the potential impact certain measures can have. For example, our Net Zero Calculator is free for any business to analyse their current emissions and how they can reduce carbon, save money and reach net zero goals by adding in sustainability solutions.
The platform is able to give facilities managers a real view on the best options for their circumstances, assess the impact that their sustainability projects are already having, and then the best measures for the future. This means you can plan an effective and long-term carbon reduction strategy.
3 Invest in the most effective sustainability measures
There are several ways that facilities managers can reduce energy consumption and carbon emissions, for example:
- Energy efficiency - The Business Energy Tracker showed that energy efficiency remains the top way to manage risk, with nearly two thirds (61%) of businesses saying they were implementing this measure, up from 58% last year. After all, the less energy you use, the less you will pay. And, the capital that this ultimately saves in reduced energy costs can be used to finance investment in further energy-saving or low-carbon technologies.
- Sustainable on-site generation - The Business Energy Tracker revealed an increased willingness from businesses to invest in sustainable on-site generation, such as solar photovoltaic (PV), wind or combined heat and power (CHP). Last year, just over one in four (27%) businesses said this was in their plans - 2023 sees it rise to over a third (36%), with solar PV the most popular solution.
It’s easy to see why - as well as making an organisation less exposed to the fluctuations of the wholesale energy market, it also helps you to reduce carbon emissions, lower energy costs and provide an increased stability of supply.
The Business Benefits Of Net Zero
Achieving net zero has become a key part of many businesses plans, and many of these are setting ambitious targets to reduce carbon emissions. However, many also struggle to know where to start, finding it difficult to get a true impression of their current emissions, and lack a clear understanding of which energy saving technologies can have the most impact.
In addition, building the case for investment during the current economic climate can also be challenging. That said, our research shows that businesses are recognising the importance and benefits of investing in sustainability measures, as they can help to improve resilience by effectively managing energy costs as well as reducing carbon emissions.
However, with budgets being increasingly stretched, it is important that any investment has a positive impact. Therefore, facilities managers need to consider using tools that will give them personalised emissions forecasts for each potential energy saving technology they are planning to invest in.
By having an informed approach to net zero, that is based on real insight and data, facilities managers will be able to plan ahead with more confidence, and ultimately achieve their carbon reduction goals.
Click the article to enlarge it.
