According to a report yesterday, energy efficiency has been hit by the removal of funding incentives. This report landed at a very challenging time as the deadline for carbon footprint results is just over ten days away.
The seventh npower Business Energy Index (nBEI) 2011 investigates changing perspectives on areas covering energy management, carbon regulation and the current economic climate, with a unique look at energy risk.
The findings reveal that businesses are more concerned with reducing costs than cutting CO2 emissions and that Government targets for reducing CO2 are unrealistic.
Findings included:npower Business Energy Index 2011
Carbon regulation and the economic climate
- While there is still some scepticism from businesses that government targets for an 80% reduction in emissions by 2050 can be achieved, the percentage has fallen from 79% in nBEI (7) to 69% in nBEI (8).
- -Both SMEs and MEUs believe more in the government's interim target of 34% reduction in carbon emissions by 2020, with 43% of SMEs and 41% of MEUs believing that the reduction can be met.
- -24% of SMEs believe that reducing their carbon footprint will deliver new business opportunities an increase on nBEI (7).
- Majority of SMEs (85%) had not heard of the Government's Green Deal initiative.
- -Half of MEUs are participating in the Carbon Reduction Commitment Energy Efficiency Scheme.
- -Nearly half of participating MEUs (46%) say they had not received adequate advice on the CRC from the government.
- -Opinion is split about whether Coalition Government policies will help the UK meet its emissions targets.
- MEUs identify energy and legislation as the biggest risks their businesses face. For SMEs, sales and cash flow are the biggest risks.
- -Strategies for managing energy, legislation and credit risk are less developed than for all the other risks businesses face. Just 66% of respondents stating that they had a strategy to manage these risks, down on nBEI (7), when 74% had a strategy in place to manage credit and 70% legislation.
- -This varies between MEUs and SMEs – 83% of MEUs have a strategy to manage energy risk, compared to 57% of SMEs
- -Increased supply costs continue to be identified as the most important energy risk that both SMEs and MEUs face; they also continue to identify security of supply as the second most important.
- -46% of organisations feel that there will be no impact on their energy supply due to their credit rating, up from 39% in nBEI (7). 23% see it as a small risk, and 23% a medium risk, down from 28% and 30% in nBEI (7).