Inefficient energy management policies and management systems are leaving healthcare trusts 'wide open' to major financial risk, international certification body BM TRADA has warned.
Spiralling energy costs, growing concern over energy security, and increasing regulatory pressure to reduce carbon emissions are making the need for greater energy efficiency a 'necessity, not a nicety' for all organisations, it says.
It adds that heavy-energy industry sectors including hospitals, local authorities, energy companies and construction firms have the most to gain from overhauling their energy management procedures.
And failing to act could expose businesses to 'significant' financial pressures and market uncertainties, as well as reputational risks in the long-term.
A spokesman for the body said curbing inefficient usage could save the UK industry sector billions of pounds in wasted energy. It also has the 'very real potential' of reducing industry's global carbon footprint, which last year amounted to 75 million tonnes in the UK alone.
Tom Johnston, BM TRADA's chief operating officer said, "The cost of energy is rising rapidly, fuelled in part by growing concern over energy security, and it is the business and public sectors that are feeling the financial impact the most.
"At the same time, energy efficiency is now firmly on government agendas in a bid to tackle carbon emissions, and wastage in the industrial sector is being met with increasingly heavy penalties.
"Outdated and inefficient energy management systems are not only costing companies more than they realise, running into million of pounds, but are also leaving businesses and organisations wide open to financial and reputational risks, which can ill afford to deal with."
Under the Kyoto Protocol, the UK Government has a legally-binding target to reduce emissions and since 2001 has operated a climate change levy to provide industry with incentive to increase energy efficiency and reduce carbon emissions. It has also intrudced mandatory carbon footprint reporting for UK listed companies, with the potential for the scheme to be extended to cover all large corporations from 2016.
UK carbon dioxide emissions have decreased by around 21% from 1990 figures, but a study by the Carbon Trust has revealed that large UK businesses are still spending over £1.6 billion on wasted energy each year.
Johnston said, "The new standard is easy to implement, is designed to cause minimal disruption, and will help businesses to implement the processes they need to understand their baseline energy usage and establish a best-practice energy policy throughout the business, including plans, targets and KPIs for reducing energy consumption."
Compliance365 is an independent energy consultancy. We provide advice and guidance on all our services; how to save energy; how to save money on your energy bills; and ultimately how to become more energy efficient. Our aim is to be as cost effective and flexible as possible for our clients.
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