Enigin Update - Energy Efficiency a Financial Opportunity for Businesses
ANALYSIS by the UK’s Carbon Trust Advisory Services has confirmed that energy efficiency is a good financial opportunity for companies.
The Trust are encouraging business leaders to take a fresh look at the opportunities in their businesses, and have produced an energy efficient paper, not as a 'how-to' guide on energy efficiency but rather to function as a reminder of the value of energy efficiency, which many businesses are overlooking.
During the Trust’s tracking of efficiency implementation by businesses they discovered that costs of at least £1.6bn could be saved by the UK's large businesses alone, with the investment required to realise these savings delivering very attractive payoffs: on average an internal rate of return (IRR) of 48% and a payback within three years.
However, despite these attractive returns, the Trust’s data suggests that most companies are yet to fully exploit the cost-saving potential of basic energy efficiency measures, and on average Chief Financial Officers estimate that the returns on energy efficiency are less than half of the actual returns available.
The Trust’s interviews with business leaders responsible for enacting energy efficiency provide useful examples of how leading companies are overcoming common barriers to progress on energy efficiency.
The recurrent themes are: making the business case clear; creating momentum; resolving misaligned incentives; and enhancing the customer proposition.
Other companies can learn from these examples as they seek to exploit the opportunities offered by the transition to a green economy.
Enigin Distributors have the range of energy efficient technology to apply to commerce and industry and help them become energy efficient, leading to financial savings from reduced energy costs.
