Is this a good time for businesses to consider their future energy needs?
11 May 2020
Most businesses have been severely impacted by the coronavirus pandemic. As the economy comes out of lockdown it will not be business as usual. Working practices will have changed and there will be restrictions on business activities for some time. Many businesses will need to undergo some degree of restructuring. These changes can have a significant effect on future energy demands leading to opportunities to make substantial savings.
Most businesses have been severely impacted by the coronavirus pandemic. As the economy comes out of lockdown it will not be business as usual. Working practices will have changed and there will be restrictions on business activities for some time.Many businesses will need to undergo some degree of restructuring. These changes can have a significant effect on future energy demands leading to opportunities to make substantial savings. While the pandemic has grabbed the headlines in recent months there is still considerable pressure on businesses to protect the environment by reducing greenhouse gas emissions (GHG).
The public have noticed how much cleaner the air has been during lockdown and could react strongly if pollution levels in our cities return to the pre-pandemic ‘normal’. Investors and fund managers are looking for sustainable businesses with funds being withdrawn from fossil fuel based industries and invested in renewable energy companies.
The balance may be tipped further in favour of renewable energy if carbon taxes continue to increase, but given the state of the economy government may be reluctant to add new burdens on industry. Looking further ahead, the government has set a legally binding target for the UK to achieve Net Zero Carbon by 2050.
Understand how much energy your business uses and where To effectively manage energy costs and reduce GHG emissions it is essential to know how much energy the business is using and where it is used. Under the Streamline Energy and Carbon Reporting (SECR) listed companies (of any size), large unquoted companies (including charitable companies) and large Limited Liability Partnerships (LLPs) must report their Greenhouse Gas (GHG) emissions and energy consumption through their annual reports.
This will provide directors with the necessary information to manage their energy consumption and identify cost savings. Large businesses that completed an Energy Saving Opportunities Scheme (ESOS) audit in 2019 which will only need to update their energy and GHG data for the current financial year.
The SECR legislation requires companies to report on their first financial year starting on or after 1 April 2019. Companies with financial year starting in April should be collating their energy and GHG emissions data now. Smaller businesses are encouraged to voluntarily measure and report their energy and GHG emissions. The Trend towards Net Zero Carbon Environmental reporting through SECR is just part of a raft of legislation aimed at reducing energy consumption and Greenhouse Gas Emissions (GHG).
Companies are already coming under pressure from investors, customers and pressure groups to reduce their GHG emissions. Coming out of the corona virus lockdown provides an opportunity for businesses to review their future energy needs and plan how they are going to meet the major challenge presented by climate change and comply with current and any future legislation imposed by government.
When the economy has recovered from the coronavirus pandemic businesses should anticipate that governments will substantially increase carbon taxes as part of their strategy to limit global warming by aiming to achieve Net Zero Carbon by 2050. Action required now Action now to match energy consumption to future business activity and reduce GHG emissions is a win-win situation.
Energy costs can be reduced (some almost immediately) and future carbon taxes can be avoided. Colin Lillicrap Associates as lead ESOS Assessors have many years’ experience of working with large businesses to audit their energy consumption, produce energy profiles and identify energy cost savings.
In the new circumstances created by the coronavirus pandemic we offer the following services.
• Review any existing energy audit such as a 2019 ESOS audit and identify any immediate energy saving opportunities as a result of changed working practices • Develop an annual environmental reporting methodology to enable the organisation to comply with SECR
• Process the organisation’s total energy consumption for the current financial year to include o calculating the businesses total GHG emission as tonnes CO2 equivalent o calculating appropriate intensity ratios as required for SECR o draft text for the company’s annual report
• Produce energy profiles showing where most energy is used
• Investigate how energy consumption might change in the future as a result of the coronavirus pandemic
• Identify short term, low cost energy and cost saving opportunities
• Develop a long term strategy to achieve Net Zero Carbon by 2050 to include o energy and cost saving measures ranked by payback or other agreed criteria o potential new low carbon technologies o reducing GHG emissions as much as possible o offsetting any remaining GHG emissions
For more information go to https://www.claenergy.solutions/esos You can download a Power Point presentation from the web site on developing a strategy to achieve Net Zero Carbon. If your financial year started on 1 April 2019 you now need to prepare to report your total GHG emissions and energy consumption in your annual report During the coronavirus lockdown we can work remotely with you to prepare the data for your report Call today on 01442 873439 to obtain a fixed price quote for processing your data or go to https://www.claenergy.solutions/https and complete our enquiry form.
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