Green Energy for Businesses and Our 3 Tips Following the Switch
3rd December 2018
In the UK you currently have two options for business green energy; generate it yourself or buy your energy in the same way you do now but on a “Green Tariff”.
Clean renewable energy or “Green Energy” comes from zero-carbon sources, i.e. wind turbines, solar panels, biogen, geothermal heat from the ground or hydropower (waves) for electricity. And for gas from methane produced using bio-waste such as crop cuttings, food waste and animal dung to name a few!
With the UK Government committing to reduce carbon emissions (Through the Climate Change Act) by 2050 to 80% below the levels in 1990, switching to clean, renewable energy is seen as the key to achieving this goal and tackling climate change.
Green Energy and Your Competitive Edge
Embracing green energy brings many benefits to businesses. It enables them to report a lower carbon footprint and increase competitive edge. Going green can also be a boost to business reputation too. More and more customers expect companies to be sustainable and for some, it makes a company a more attractive place to work.
From a sales point of view, B2C customers do make moral and ethical purchases based on brands doing social or environmental good. Whilst it won’t be important to every consumer, can you afford to ignore the values of some of your potential customers? And if your organisation is B2B, with growing Corporate Social Responsibility (CSR) awareness, your green credentials can form part of the decision making process for your customers and clients. Essentially, no matter who your customers are, Green Energy procurement sends a strong message to them that you care about the environment. And if that matters to them, it’ll make them more likely to buy from you.
More than 140 large business corporates, including Carlsburg, Decathlon, Aviva and Johnson & Johnson have made commitments to use 100% clean, renewable energy through the Climate Group’s RE100 initiative. As with many initiatives this is now filtering down to SMEs looking to stand out. And because it is no extra work for businesses (they have to procure energy anyway) it’s becoming a viable option for many.
The Supply Chain and Renewable Energy
Having a demonstrable lower carbon footprint can help companies crack into big business supply chains too. Creating sustainable supply chains is a necessity for some businesses, with large retailers etc. increasingly choosing suppliers that can match their own green credentials and actively demonstrate a commitment to lowering their own carbon footprint.
With many green energy products being trackable through the supply chain, it provides certainty for all that they are contributing to the generation of renewable energy. As businesses look to procure goods, as part of a sustainable supply chain model, Business Energy Procurement can help form part of this when selecting green energy tariffs.
With growing Corporate Social Responsibility (CSR) awareness, your green credentials can form part of the decision making process for your customers and clients to engage with you. And more over, when bidding for certain contracts or presenting your products or services to potential customers, you may not be eligible unless you meet certain environmental prerequisites regarding your own supply chain.
By choosing to procure from supply-chain organisations that actively manage their carbon emissions, businesses can reduce the carbon intensity of their end-to-end operations, helping to “green” their brand, while accelerating the UK’s low-carbon economy. It is a compelling, tactical opportunity for SMEs to stand out and win business.
Green Energy Advice for Businesses Following the Switch
It is estimated that there’s a £900bn opportunity in existence for brands that make their sustainability credentials clear and green business energy is just one way to highlight this. If you’ve made the switch you should;
"Essentially, no matter who your customers are, Green Energy procurement sends a strong message to them that you care about the environment. And if that matters to them, it’ll make them more likely to buy from you."