How Businesses are Responding to the Climate Challenge
In this constantly changing and challenging economic landscape, businesses are being asked to reduce their costs whilst at the same time make more money. With that in mind, here’s why a move to renewable energy could not only help you save money but provide you with more opportunities and help you win more business.
Customers want to buy green
In a 2017 study, Unilever investigated consumer’s buying habits. They found that consumers “would actively choose brands if they made their sustainability credentials clearer on their packaging and in their marketing”, and 1/3 of consumers are now buying from brands based on their social and environmental impact. That’s a potential £860bn market available to brands who show off their green credentials .
But what about businesses who are in the B2B space, working with companies driven by their head, not the heart? Well, it’s not just B2C companies that are benefitting from sustainable culture.
There’s the RE100, a group of leading companies across multiple sectors, such as Apple, Facebook, Ikea, Kellogg’s, Lego, M&S and BMW, who have all committed to 100% renewable electricity. In 2017, Capgemini found that “globally, RE100 companies are financially more profitable than their competitors in each sector” . These businesses are clearly on to something if they are outperforming competitors in each sector. Even B2B companies, not driven by consumer wants, are still benefiting on their bottom line.
The RE100 are now looking at their Scope 3 – their Supply Chain's Corporate Social Responsibility (CSR), ensuring they demonstrate their sustainability and act ethically. Get ahead of the game and differentiate yourselves by addressing 1 of the 17 United Nations’ Sustainable Development Goals - Clean Electricity. That means if you want the competitive edge to supply to these giants, zero carbon, renewable electricity is the way to get it.
You need to report on it
How, and what, companies need to report on emissions is changing. You may have heard of the Streamlined Energy & Carbon Reporting (SECR) framework. If you haven’t then you might want to see if you are one of the estimated 11,900 businesses that will need to report on your energy consumption and Greenhouse Gases in your annual report for financial years beginning on or after 1 April 2019 .
This reporting has been introduced in place of the Carbon Reduction Commitment (CRC) report and aims to make reporting easier, whilst increasing the transparency of emissions to investors and encouraging businesses to act on climate-related risks. Check out your own business’ carbon emissions on our Carbon Calculator.
You can still cut costs
Most suppliers will offer renewable energy contracts backed by GoOs (Guarantees of Origin) or REGOs (Renewable Energy Guarantees of Origin) that guarantee that what you have brought comes from a renewable generation source. The catch is there is usually an extra cost attached to this, which is one of the reasons green energy has been thought to cost more than brown energy (generated by fossil fuels).
However, suppliers like Bryt Energy are offering a 100% renewable energy supply without the premium, meaning you can get all the benefits of a zero-carbon supply with no extra costs.
Be aware of what you’re buying
Not all green energy is created equal and if your supplier is offering a low-carbon product it is worth checking the fuel mix behind the supply. For example, Nuclear generation is often quoted as green and low-carbon, but it comes from a finite resource with the added impacts of radioactive waste. Plus, whilst Bioenergy is classed as ‘renewable’, it requires combustion to generate electricity and is linked to an increased carbon production.
At Bryt Energy we only supply zero carbon, 100% renewable electricity, solely from natural sources: Wind, Hydro and Solar.
If you are looking into your electricity supply in 2019, get in touch to see what we can do to give your business the competitive advantage and win more business.