Small firms are losing as much as £1.3 billion a year because they are not managing their energy as efficiently as possible, it has been claimed.
The Carbon Trust has said that implementing cost-effective energy policies could save small businesses £1.3 billion and the whole of UK business some £2.5 billion over the next year.
The Trust argued that the potential savings represent the equivalent of 13 per cent of all business energy bills or the combined annual salaries of more than 100,000 employees on an average wage.
But with fuel costs soaring, more and more firms are already targeting carbon emissions as a way of controlling costs, the Carbon Trust said.
In a survey of business owners and directors, the Carbon Trust found that tackling emissions has climbed the agenda in the last six months for twice as many firms as those for whom it is now less of a priority. A significant proportion of businesses said they rank energy efficiency ahead of recruitment freezes, redundancies, freezing salaries or giving below inflation pay rises as a potential cost-saving measure.
Some 69 per cent of respondents to the survey reported that they were either actively cutting energy costs or considering doing so.
Hugh Jones, solutions director at the Carbon Trust, said: "Our research shows that energy efficiency measures, not job cuts or salary freezes, are the cost-cutting steps businesses are considering first during this economically challenging time. It's an encouraging sign that wise companies are realising that cutting carbon and being green is the easiest way to make a business lean."
Mr Jones added: "Our new statistics provide stark evidence that if companies are starting to feel the bite from the economic downturn, the first place to look for cost savings should be their energy bill. There are literally millions of pounds going out of the window every day, across the UK. Weπre talking about money that could be saved by making quick and easy changes such as encouraging staff to turn off computers and lights, turning down the heating, or maintaining equipment properly."
As well as saving cash, the energy-efficiency measures would remove around 22 million tonnes of carbon dioxide emissions, the Carbon Trust said.
Neil Bentley, director of business environment at the CBI, commented: "We welcome these findings from the Carbon Trust, which support the CBI's conclusions that despite a choppy economic outlook, climate change remains a priority for business. The analysis confirms the compelling business case for urgent action to improve energy efficiency and common-sense measures like turning off lights and turning the heating down can lead to substantial reductions in firms' energy bills."
David Boomer, head of energy efficiency and climate change at the Institute of Directors, agreed: "IoD data also confirms the findings of the Carbon Trust. Energy efficiency is one of the most cost-effective measures that business can take to reduce operational costs and improve their competitiveness. The IoD's research shows that those businesses currently addressing energy efficiency have reduced their bills by 6-10 per cent, with savings of up to 20 per cent being achievable. We strongly endorse the Carbon Trust's message and would encourage businesses of all sizes to reduce their energy use."
The Carbon Trust provides some straightforward guidelines on how businesses can make their energy go further.
Switching lights off in empty rooms and corridors could cut lighting costs by as much as 15 per cent.
Unless it's just too cold for comfort, try to keep heating thermostats at 19C. Heating costs will go up by 8 per cent each time the temperature is increased by just one degree.
Failing to check heating equipment regularly could add as much as 10 per cent to heating bills.
It is cheaper to provide a kettle for staff who work outside normal business hours than to continue to run a drinks vending machine during these times.
A single computer and monitor left on 24 hours a day will cost over £50 a year. Switching off computers outside of office hours could reduce this to £15 a year.
Replacing high wattage filament lamps or tungsten halogen lamps with compact fluorescent lamps or metal halide lamps will give energy savings of 65-75 per cent.
More information on energy efficiency and savings can be found at http://www.carbontrust.co.uk
Date:23 July 2008
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