15 May 2023
In the face of uncertainty and with the storm clouds of a turbulent global economy hanging over us, it has become increasingly difficult for organisations to focus on their long-term sustainability goals. Can organisations build a business case for cost efficiency and net zero?
It’s not always easy to work out where to begin or how to progress your sustainability journey. However, a helpful place to start might be to think about what other organisations in your industry are doing. What would they say if you asked them about the business risks, they are most concerned about? Do they think cost is the biggest energy-related challenge they face? What’s more of a priority – cost or carbon?
Well, we asked 500 organisations across a variety of industries those exact questions and more. The goal was to get their thoughts on how they’re balancing their energy cost and sustainability goals and as you can imagine, there was a lot to unpack.
46% say that the cost of energy is currently a more pressing issue than sustainability.
42% say they are prioritising long-term gains over quick returns and low-risk strategies — down from 53% in 2021.
The thoughts and feelings conveyed to us were enlightening. Everyone struggled in one way or another when gas and electric prices reached record highs in 2022. No organisation was immune from the effects of the biggest energy crisis in modern times and while many have endured its harsh winds, no organisation came out unscathed.
Fast-forward to 2023, energy cost efficiency continues to be a pressing concern and organisations are struggling to focus on their long-term decarbonisation goals, as they are forced to react to the immediate pressures relating to the current economic climate. Nevertheless, organisations cannot afford to wait, and they need to act now. So, how can organisations focus on long-term goals of sustainability, when cost efficiency is a problem right now?
44% of organisations say their biggest energy-related challenge in the next three years is reducing energy costs and gaining cost predictability for energy.
For 44% of organisations, financial risk is now the most serious threat they face; for 40%, it is energy security.
You probably already know that neglecting your sustainability goals could be financially risky. Both investors and customers continue to demand change from organisations and hold them accountable as far as sustainability is concerned. What if we told you that other organisations are realising that achieving the twin goals of energy cost reduction and sustainability are not mutually exclusive? We are not the only ones that believe this; others agree.
Both investors and customers continue to demand change from organisations and hold them accountable as far as sustainability is concerned. And making informed decisions to refine their progress off the back of insightful data and analytics only demonstrates that there is still a business case for continuing to pursue net zero.
Organisations that are thriving have made significant progress in investing in new systems to improve their energy use and predictability. They have also proved that making the switch to a renewable energy supply is low-hanging fruit and a good first step for organisations that are not sure how to start their net zero journeys. 28% of businesses surveyed said they have already adopted renewable energy supply, with 45% of respondents considering it or planning to adopt it in the near future.
52% of organisations say their investors and shareholders are more in favour of investing in renewable energy than ever before.
28% of businesses surveyed said they have already adopted renewable energy supply, with 45% of respondents considering it or planning to adopt it in the near future.
Leaders in energy management will continue to play a crucial role in keeping their organisations focused on longer-term sustainability goals. Making sure energy managers are supported and equipped to find cost efficiencies at the same time as fulfilling decarbonisation mandates will also see organisations thrive.
All we know for sure is that when the storm clouds pass and the dust settles, many organisations will bear the scars from this chaotic period. However, those that thrive in these turbulent times understand that from chaos comes opportunity and usually in the form that we don’t expect. If there is one takeaway, it is this. Many of the strategies and tactics organisations will use to reduce costs in the short term can also support their long-term decarbonisation efforts. Why not make your business case for net zero?
Our comprehensive report will give you a unique perspective into how other organisations have adapted to the challenges of the current climate and will give you invaluable insight that is not available anywhere else. How will you apply that knowledge? Let’s find out.
The views, opinions and positions expressed within the British Gas Business Blog are those of the author alone and do not represent those of British Gas. The accuracy, completeness and validity of any statements made within this blog are not guaranteed. British Gas accepts no liability for any errors, omissions or representations. The copyright in the content within the British Gas Business Blog belongs to the authors of such content and any liability with regards to infringement of intellectual property rights remains with them. See the Fuel mix used to generate our electricity. Read about making a complaint about your business energy.
