We are heading for a very hard winter, as soaring energy prices drive inflation. It is not only households that will struggle to pay their bills. Energy bills for the average small business have quadrupled over the last 18 months and the viability of many businesses and public sector organisations is threatened as they struggle to stay within budgets and still deliver their services. Even for those which can afford to pay their bills, there is still the threat of power supply disruptions.  

And on top of this, the pressure on businesses – from government, customers, staff and investors – to disclose environmental performance data and cut carbon emissions, remains intense.

Taking these pressures together, it is easy to see that ‘business as usual’, when it comes to energy use, is risky. The consequences of failing to manage energy use and carbon emissions could be catastrophic.

The opposite is also true: effective energy and carbon management is arguably the quickest and most valuable response to the current triple threat of rising prices, security of supply and climate change. It delivers cost savings and mitigates against future risks from climate-related legislation. It demonstrates good practice to investors and customers. And it can enhance an organisation’s reputation with its current and potential future employees, increasing productivity and helping to attract new talent.

Continuous measuring process
What is energy and carbon management? In a nutshell, it is the continuous process of measuring, understanding and optimising energy consumption and greenhouse gas emissions within an organisation. It uses standard management techniques, tools and processes. The goal is to minimise the energy used and emissions generated in delivering the heat, light and power that an organisation needs.  

At the heart of this is increasing energy efficiency – nearly three-quarters of respondents to this year’s Energy Institute (EI) Energy Barometer survey pointed to the need for advice and incentives to support energy efficiency and thus help businesses manage inflated energy costs.

The risks overcome and the opportunities created by good energy management should mean that it is something that all businesses do. But this is not the case – energy and carbon management is ignored or not well understood by many businesses, public sector organisations and not-for-profits.

Many do not know how to set up the necessary systems. Their employees might not appreciate the scale of wasted energy, or the financial and environmental implications of their energy use at work. Perhaps energy efficiency projects are seen as too expensive, or their returns too uncertain. Nonetheless, there is good evidence to suggest that energy consumers, in businesses as well as in homes, want to take action.

As Professor Robert Gross FEI, EI Trustee and UKERC Director, said at the launch of the EI’s Energy Barometer report earlier this year: ‘We know that consumers are up for playing their part – bill hikes are hitting them hard, and polling tells us they support action to reduce emissions too. But it’s been a decade since the last national public information campaign on energy and climate change. The Barometer backs a call for central government to play a leading role in providing quality tailored advice to change the public’s energy behaviour and play their part in the crisis response.’

Sources of help
National and local government may or may not choose to lead the way in helping us to change how we understand and use energy. But there are other sources of help for businesses looking to start on their energy management journey.

The Energy Institute is responding to the energy crisis by providing free online resources to organisations who desperately need to take control of their bills this winter, including its new Energy Essentials: A guide to energy and carbon management. The online guide is aimed at organisations and individuals which are just starting on this journey, helping them understand the basics and directing them to more information and resources.  

It builds on the EI’s three-level energy management training framework that has been supporting professionals for many years in developing their energy and carbon management knowledge and skills.

This winter, I urge people in organisations that aren’t yet in control of their energy use and emissions to get informed, develop the necessary skills and put in place the right systems. Resources like Energy Essentials: A guide to energy and carbon management are an important first step on this journey.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.