ADIAN campaign highlights Simple Storage Service
A
beanwave
PR campaign for:
Energy consultants ADIAN commissioned beanwave to manage a 3-month PR campaign from January-March 2010.
Featured examples of work in the campaign: P2-4: Case study for a Land Securities project (beanwave wrote four case studies in total). P5-6: Press Release for the Land Sec project (various releases were sent out for all case studies, and versions tailored to both trade publications and local media). This release was picked up by Estates Review and FMX, and is going in their May issues. P7-9: Editorial copy written and submitted to Estates Review - a key targeted publication. P10: Copy of the editorial as featured in Estates Review (Mar/April 2010) These examples are shown on the following pages in this document.
Results Overall beanwave generated over £10.5k worth of coverage in the 3-month period from a standing start. This exceeded expectations and positioned ADIAN as a Thought Leaders in their field.
Land Securities - Air conditioning legislation Building Air Conditioning Inspections are a statutory requirement and form part of the Energy Performance of Buildings Directive. The purpose of the inspections is to introduce a formal and regular method for the energy efficiency assessment of existing air conditioning plant, equipment and installations. With around sixty prestigious managed office buildings within its London Portfolio, Land Securities decided to outsource the task of inspecting its complex systems to independent consultants.
Land Securities is the largest commercial property company in the UK and a member of the FTSE 100. Founded in 1944, the company owns and manages more than 29 million sq ft of property including some of the highest profile buildings in the country. Land Securities operates two business divisions – the Retail Portfolio, comprising shopping centres and retail parks and the London Portfolio which includes some of the capital’s prime office and retail space. Land Securities goes beyond bricks and mortar. Through design, community engagement and customer service the company creates places where people choose to shop, are proud to work and want to live. The project team: Richard Weavers Head of Technical Management, Land Securities Robert Gevargiz Director, ADIAN Consulting
The story... Short list Land Securities short-listed two consultants to perform trial air conditioning inspections, one of which was ADIAN Consulting (ADIAN). ADIAN fulfilled the brief and presented a report that impressed Land Securities. ADIAN’s knowledge and experience became evident.
“Rather than ticking a box, ADIAN went that extra step and produced a report that allowed us to work on the performance of that building” – Richard Weavers Head of Technical Management, Land Securities.
Choice made As a result of the successful trial, Land Securities awarded ADIAN a further 1.7m Ft2 of prestigious London offices to inspect. Richard Weavers was impressed by the manner in which ADIAN conducted the inspections. Land Securities’ buildings are not owner-occupied. ADIAN consultants were required to liaise with Land Securities estates teams and its tenants to agree a plan for the inspections. This required ADIAN to be flexible on working hours and its inspection methodology and to represent the corporate image of Land Securities to their customers and contractors in a positive light. “If people working on our behalf don’t plan and meet the agreed schedule or leave a dust on desks, we get a complaint from the customer. That did not happen once with ADIAN.” – Richard Weavers
Going the extra mile Additional benefits ADIAN delivered included: Recommendations to optimise building management system (BMS) control strategies. This included suggested adjustments to the air conditioning settings for greater energy efficiency. Buildings are designed with a notional tenant in mind but once inhabited the parameters change. ADIAN, for example, challenged Land Securities humidity control differentials suggesting a widening of the settings to allow a less rigid operating band. This change in the settings will reduce energy consumption but have a negligible effect on occupancy comfort. Leading an internal workshop for Land Securities operational teams and the company’s base build development team who are responsible for new construction. The workshop gave ADIAN and Land Securities personnel the opportunity to discuss the design and operation of the air conditioning systems in detail with the view to improving both processes in existing offices and in future construction projects.
“ADIAN didn’t stop at the reports – they went the extra mile” – Richard Weavers
Results... The brief for the Pilot and Phase 1 was to carry out statutory Air Conditioning Inspections as required by law. This was achieved efficiently and professionally. ADIAN, however, went further. ADIAN demonstrated how Land Securities could take compliance one step further and reduce building energy consumption and cost in the short term. The longer term benefits will flow from ADIAN’s feedback workshops, the results of which will be applied to future construction works. As Richard Weavers says: “We’ve always fed ideas back into the process, but never in such a structured approach as we do now following ADIAN’s air conditioning inspections.” Land Securities gave a 3-year commitment to reduce CO2 output from London offices by 10% in 2010. The savings from the air conditioning efficiencies alone will deliver around 3-4%.
Next steps... Many of ADIAN’s recommendations for change have been planned for implementation in the new financial year. With the tightening of legislation scheduled for 2011, ADIAN has been instructed to carry out further AC Inspections covering the rest of the Land Securities’ London Portfolio. Land Securities have also commissioned ADIAN to carry out further projects at several of its London buildings. These projects have focused on electricity consumption where rising costs suggested a need for greater understanding of the driving factors influencing usage.
“ADIAN has a very honest approach. They are very customer focused and very environmentally aware. These are three things that Land Securities very much believe in so there is an affinity between the two organisations.”
Richard Weavers
Key insights:
• After-care is not natural to most consultants – always select a consultant with appropriate skills to fit the requirement. • There are always further opportunities to reduce consumption and cost - but you need to know where to look. • Box ticking isn’t enough - choose consultants that go further and add value.
– Richard Weavers
For further details on how ADIAN can benefit your business, contact Robert Gevargiz on 01908 306 018 or email: [email protected] www.adian.co.uk
FOR IMMEDIATE RELEASE February 2010
ADIAN Consulting reduces Land Securities’ energy consumption and costs Milton Keynes based independent energy consultants, ADIAN Consulting, recently concluded Phase 1 of an estate-wide air conditioning inspection project for Land Securities, the successful delivery of which contributed to 4% of the company’s plans for a 10% CO2 reduction commitment. Land Securities portfolio in London totals some sixty buildings, some of the capital’s prime office and retail space, all of which is subject to the Energy Performance of Buildings Directive. ADIAN Consulting Ltd (ADIAN) were initially shortlisted alongside others to perform trial air conditioning inspections, but the quality of the consulting advice, reporting and the additional steps ADIAN took ensured they would secure the remainder of the London Portfolio. Richard Weavers, Head of Technical Management – Land Securities explains: “Rather than ticking a box, ADIAN went that extra step and produced a report that allowed us to work on the performance of that building.” Demonstrating how Land Securities could take compliance one step further, enabled ADIAN to identify reductions in building energy consumption and running costs. Once new buildings are inhabited their operating parameters can be made to work more flexibly than those of the original design. This includes, for example, the widening of humidity control differentials to allow a less rigid operating band. This change in settings, while having no adverse impact on the occupants’ comfort, has a significant impact on reducing energy consumption. Taking this concept further, ADIAN conducted workshops for the Land Securities operational teams to explore further refinement and improvement opportunities in the design process and the operation of its air conditioning systems.
As a result of its structured approach to the air conditioning projects, Land Securities commissioned ADIAN to carry out further energy management assignments focusing on electricity use in buildings. As Richard Weavers says: “ADIAN has a very honest approach. They are very customer focused, and very environmentally aware. These are three things that Land Securities very much believe in, so there is an affinity between the two organisations.” For more information on this and other projects visit www.adian.co.uk or call Robert Gevargiz on 01908 306 018. - ENDS -
Notes to Editors About ADIAN: Independent energy and sustainability consultant ADIAN Consulting Ltd was founded in April 2000 to assist regional, national and international organisations in adapting their business philosophy and operations to a low carbon strategy. The success of the Milton Keynes based company is built on their passion to help companies save money, achieve lower carbon emissions and comply with legislation. Working with clients in the education, property, charities, leisure, commerce, health, local government and manufacturing sectors, ADIAN Consulting has helped to identify and develop sustainable low carbon strategies that are proven to improve reputation, reduce operating costs, decrease CO2 emissions and mitigate legislative risk. www.adian.co.uk Contact: For further information, interviews and images please contact: Celia Bristow, Director, beanwave T: 07715 181 944 [email protected] James Bristow, Director, beanwave T: 07545 921 868 [email protected] www.beanwave.co.uk
ADIAN EDITORIAL
WHY CONCERN ABOUT CLIMATE CHANGE IS A WASTE OF TIME Historically almost all decisions have been made on economic grounds. Training, from primary school to business school, has taught us to gauge project success purely on return on investment. But as the environmentalists muscle their way in they are proposing to introduce all manners of complications. Robert Gevargiz of ADIAN Consulting argues why businesses should continue to use money as the key success measure and ignore unnecessary distractions. As the second decade of the 21st century begins two very different concepts with inherent tensions begin to influence our lives. The first is the imperative to learn to live sustainably so that the planet can continue to support life (as we know it) for future generations. The second is a political necessity to continuously improve people’s standard of living. The trouble is that improving people’s living standard needs more money. To have the money to improve things governments and public sector institutions have to spend more. This means they have to rely on higher earnings through taxation income. For their staff to lead more comfortable lives businesses have to pay them more in wages. This means employers have to earn more, usually by growing in size, to support higher government spending and higher wages. Growing in size means needing more resources which, in turn, costs more money. To pay for more resources businesses have to increase earnings. If it is not possible to earn more, because the overall economy is not able to absorb growth, then saving money becomes necessary. Whichever way we look, the traditional short term economic model uses money as a measure of economic success. So where does this leave our first imperative? How do we deal with the need to live more sustainably and improve the standard of living for all? The most effective tool that is currently available to economists and environmentalist alike is energy efficiency. Although it doesn’t provide all the answers it provides some. As the use of energy is universal its economic and environmental impact is significant. In recessionary times thrift through a cut in energy spend can partly make up for lost
opportunities in higher sales. It is quite common for businesses to have energy spend which is equivalent to 10-15% of their net earnings. This means any fall in energy spend directly raises the profit margin. Raising profitability through energy efficiency and thus having money to invest in new projects fits in with the traditional economic model. A fall in energy use, however, also satisfies the sustainability imperative. It is rare to have a single measure that satisfies two interests that are inherently in conflict.
Energy efficiency and better
energy management tick both boxes perfectly. Let’s look at this more closely. There are several ways of making a noticeable cut in energy costs. Energy price fluctuations affect profitability and disposable income for businesses and individuals. Start with reviewing the energy buying process. Is your business good at buying electricity and gas or do you leave it to chance? Do you have someone in the business who knows how the energy markets work or do you sign a last minute agreement based on an offer from the local energy supplier? Are your contracts still valid or did they end many months (or years!) ago? If you don’t have a valid contract your energy rates will be at least double the normal rates. This will be a significant drain on your earnings. Your business pays for electricity metering. This is normally a quarterly bill which may pass unnoticed. There are ways of reducing this cost too but it will require careful investigation to find out what suits the business best. Electricity and gas tariffs (the construction of the bill) also have a large bearing on cost. A frequent review of tariffs is essential. In many cases old tariffs are being applied which do not fit in with current business activity. This means the business may be spending far too much on its electricity or gas. Annual savings amounting to £50k/£60k are not uncommon. All of the above take time and need someone knowledgeable internally to perform the tasks. If you haven’t got the expertise or the resource then seek advice from reputable specialists. There are consultants and brokers who specialise in energy procurement but choose wisely. Check on personnel and track record. After assessing better energy buying opportunities it is time to look at how to use less energy. Regardless of the business you are in (be it commerce, industry, public
sector, education etc) 10% to 25% of the energy used could be reduced through efficiency improvements. The best way to start is to commission an energy survey of your buildings and operations. If your energy spend is greater than £30k per annum the Carbon Trust provides free surveys. The survey will identify what opportunities there are at your site and rank them by the traditional simple pay back model. To satisfy the sustainability imperative the survey will also quantify how much CO2 may be saved through efficiency gains. If you are a small to medium enterprise (SME) interest free loans and grants may be available to assist with implementing the identified measures. Contact your energy consultant for advice. If you haven’t worked with a consultant before call the number below and find out more about the next steps. In our experience energy projects pay back handsomely. For most projects the breakeven period is anything from six months to two years. These are very attractive rates of return that are not readily available elsewhere. They satisfy the traditional money measures model and by saving CO2 they tick the environmental and climate change model too. So why be concerned about climate change? Simply take action now. Move your business forward by making it more energy efficient. Reduce CO2 emissions and improve business profitability at the same time. Communicate this to your customers and industry peers; they will be most impressed. To find out more about Energy Efficiency contact Robert Gevargiz at ADIAN Consulting (www.adian.co.uk). - ENDS Contact details to be printed: www.adian.co.uk Tel: Robert Gevargiz, Director, ADIAN Consulting on 01908 306 018. Email: [email protected] NOT FOR PUBLICATION For further information, please contact Celia Bristow on Tel: 07715 181944 or Email: [email protected]
REBECCA VAN OMMEN / SAM ARMSTRONG
ENERGY EFFICIENCY
Why concern about climate change is a waste of time Robert Gevargiz argues that businesses should continue to use money as the key success measure and ignore any unnecessary distractions...
ENVIRONMENT
A
s the second decade of the twenty-first century begins two very different concepts with inherent tensions begin to influence our lives. The first is the imperative to learn to live sustainably so that the planet can continue to support life (as we know it) for future generations. The second is a political necessity to continuously improve people’s standard of living. Living standards, however, cost money to improve - money which individuals, businesses and ultimately governments must earn. Yet when money can not be further earned through business (as a result for example) of economic constraints, it must be saved by business. The most effective tool that is currently available to economists and environmentalist alike is energy efficiency. Although it doesn’t provide all the answers it provides some. As the use of energy is universal, its economic and environmental impact is significant. In recessionary times thrift through a cut in energy spend can partly make up for lost opportunities in higher sales. It is common for businesses to have energy spend which is equivalent to 10 to15 percent of their net earnings. This means any fall in energy spend directly raises the profit margin. There are several ways of making a noticeable cut in energy costs. Energy price fluctuations affect profitability and disposable income for businesses and individuals. It is thus wise to review the energy buying process. Do 108 March / April 2010
you have someone in the business who knows how the energy markets work or do you sign a last minute agreement based on an offer from the local energy supplier? Are contracts still valid or did they end many months ago? If you don’t have a valid contract your energy rates will be at least double the normal rates. This will be a significant drain on your earnings. Businesses pay for electricity metering. This is normally a quarterly bill which may pass unnoticed. There are ways of reducing this cost too but it will require careful investigation to find out what suits the business best. Electricity and gas tariffs (the construction of the bill) also have a large bearing on cost. A frequent review of tariffs is essential. In many cases, old tariffs are being applied which do not fit in with current business activity. This means the business may be spending far too much on its electricity or gas. Annual savings of up to £60,000 are possible. After assessing better energy buying opportunities, look at how to use less energy. Regardless of the business sector, be it commerce, industry, public sector or education,10 to 25 percent of the energy used could be reduced through efficiency improvements. Commissioning an energy survey of your buildings and operations is a good start and, if your energy spend is greater than £30,000 per annum, the Carbon Trust provides free surveys. The survey will identify what opportunities there are at your site and rank
them by the traditional simple pay back model. To satisfy the sustainability imperative, the survey will also quantify how much CO2 may be saved through efficiency gains. Small to medium enterprises can receive interest free loans and grants are also available to assist with implementing environmental measures. Energy efficiency projects can pay back handsomely. For most projects the breakeven period
The most effective tool that is currently available to economists and environmentalist alike is energy efficiency is anything from six months to two years. These are very attractive rates of return that are not readily available elsewhere. They satisfy the traditional money measures model and by saving CO2 they tick the environmental and climate change model too. So why be concerned about climate change? Take simple actions now. Move your business forward by making it more energy efficient. Reduce CO2 emissions and improve business profitability at the same time. Then communicate this to your customers and industry peers; they will be most impressed.
FOR MORE INFORMATION Contact Robert Gevargiz at ADIAN Consulting Email: [email protected] or visit: adian.co.uk
beanwave
PR campaign for:
Energy consultants ADIAN commissioned beanwave to manage a 3-month PR campaign from January-March 2010.
Featured examples of work in the campaign: P2-4: Case study for a Land Securities project (beanwave wrote four case studies in total). P5-6: Press Release for the Land Sec project (various releases were sent out for all case studies, and versions tailored to both trade publications and local media). This release was picked up by Estates Review and FMX, and is going in their May issues. P7-9: Editorial copy written and submitted to Estates Review - a key targeted publication. P10: Copy of the editorial as featured in Estates Review (Mar/April 2010) These examples are shown on the following pages in this document.
Results Overall beanwave generated over £10.5k worth of coverage in the 3-month period from a standing start. This exceeded expectations and positioned ADIAN as a Thought Leaders in their field.
Land Securities - Air conditioning legislation Building Air Conditioning Inspections are a statutory requirement and form part of the Energy Performance of Buildings Directive. The purpose of the inspections is to introduce a formal and regular method for the energy efficiency assessment of existing air conditioning plant, equipment and installations. With around sixty prestigious managed office buildings within its London Portfolio, Land Securities decided to outsource the task of inspecting its complex systems to independent consultants.
Land Securities is the largest commercial property company in the UK and a member of the FTSE 100. Founded in 1944, the company owns and manages more than 29 million sq ft of property including some of the highest profile buildings in the country. Land Securities operates two business divisions – the Retail Portfolio, comprising shopping centres and retail parks and the London Portfolio which includes some of the capital’s prime office and retail space. Land Securities goes beyond bricks and mortar. Through design, community engagement and customer service the company creates places where people choose to shop, are proud to work and want to live. The project team: Richard Weavers Head of Technical Management, Land Securities Robert Gevargiz Director, ADIAN Consulting
The story... Short list Land Securities short-listed two consultants to perform trial air conditioning inspections, one of which was ADIAN Consulting (ADIAN). ADIAN fulfilled the brief and presented a report that impressed Land Securities. ADIAN’s knowledge and experience became evident.
“Rather than ticking a box, ADIAN went that extra step and produced a report that allowed us to work on the performance of that building” – Richard Weavers Head of Technical Management, Land Securities.
Choice made As a result of the successful trial, Land Securities awarded ADIAN a further 1.7m Ft2 of prestigious London offices to inspect. Richard Weavers was impressed by the manner in which ADIAN conducted the inspections. Land Securities’ buildings are not owner-occupied. ADIAN consultants were required to liaise with Land Securities estates teams and its tenants to agree a plan for the inspections. This required ADIAN to be flexible on working hours and its inspection methodology and to represent the corporate image of Land Securities to their customers and contractors in a positive light. “If people working on our behalf don’t plan and meet the agreed schedule or leave a dust on desks, we get a complaint from the customer. That did not happen once with ADIAN.” – Richard Weavers
Going the extra mile Additional benefits ADIAN delivered included: Recommendations to optimise building management system (BMS) control strategies. This included suggested adjustments to the air conditioning settings for greater energy efficiency. Buildings are designed with a notional tenant in mind but once inhabited the parameters change. ADIAN, for example, challenged Land Securities humidity control differentials suggesting a widening of the settings to allow a less rigid operating band. This change in the settings will reduce energy consumption but have a negligible effect on occupancy comfort. Leading an internal workshop for Land Securities operational teams and the company’s base build development team who are responsible for new construction. The workshop gave ADIAN and Land Securities personnel the opportunity to discuss the design and operation of the air conditioning systems in detail with the view to improving both processes in existing offices and in future construction projects.
“ADIAN didn’t stop at the reports – they went the extra mile” – Richard Weavers
Results... The brief for the Pilot and Phase 1 was to carry out statutory Air Conditioning Inspections as required by law. This was achieved efficiently and professionally. ADIAN, however, went further. ADIAN demonstrated how Land Securities could take compliance one step further and reduce building energy consumption and cost in the short term. The longer term benefits will flow from ADIAN’s feedback workshops, the results of which will be applied to future construction works. As Richard Weavers says: “We’ve always fed ideas back into the process, but never in such a structured approach as we do now following ADIAN’s air conditioning inspections.” Land Securities gave a 3-year commitment to reduce CO2 output from London offices by 10% in 2010. The savings from the air conditioning efficiencies alone will deliver around 3-4%.
Next steps... Many of ADIAN’s recommendations for change have been planned for implementation in the new financial year. With the tightening of legislation scheduled for 2011, ADIAN has been instructed to carry out further AC Inspections covering the rest of the Land Securities’ London Portfolio. Land Securities have also commissioned ADIAN to carry out further projects at several of its London buildings. These projects have focused on electricity consumption where rising costs suggested a need for greater understanding of the driving factors influencing usage.
“ADIAN has a very honest approach. They are very customer focused and very environmentally aware. These are three things that Land Securities very much believe in so there is an affinity between the two organisations.”
Richard Weavers
Key insights:
• After-care is not natural to most consultants – always select a consultant with appropriate skills to fit the requirement. • There are always further opportunities to reduce consumption and cost - but you need to know where to look. • Box ticking isn’t enough - choose consultants that go further and add value.
– Richard Weavers
For further details on how ADIAN can benefit your business, contact Robert Gevargiz on 01908 306 018 or email: [email protected] www.adian.co.uk
FOR IMMEDIATE RELEASE February 2010
ADIAN Consulting reduces Land Securities’ energy consumption and costs Milton Keynes based independent energy consultants, ADIAN Consulting, recently concluded Phase 1 of an estate-wide air conditioning inspection project for Land Securities, the successful delivery of which contributed to 4% of the company’s plans for a 10% CO2 reduction commitment. Land Securities portfolio in London totals some sixty buildings, some of the capital’s prime office and retail space, all of which is subject to the Energy Performance of Buildings Directive. ADIAN Consulting Ltd (ADIAN) were initially shortlisted alongside others to perform trial air conditioning inspections, but the quality of the consulting advice, reporting and the additional steps ADIAN took ensured they would secure the remainder of the London Portfolio. Richard Weavers, Head of Technical Management – Land Securities explains: “Rather than ticking a box, ADIAN went that extra step and produced a report that allowed us to work on the performance of that building.” Demonstrating how Land Securities could take compliance one step further, enabled ADIAN to identify reductions in building energy consumption and running costs. Once new buildings are inhabited their operating parameters can be made to work more flexibly than those of the original design. This includes, for example, the widening of humidity control differentials to allow a less rigid operating band. This change in settings, while having no adverse impact on the occupants’ comfort, has a significant impact on reducing energy consumption. Taking this concept further, ADIAN conducted workshops for the Land Securities operational teams to explore further refinement and improvement opportunities in the design process and the operation of its air conditioning systems.
As a result of its structured approach to the air conditioning projects, Land Securities commissioned ADIAN to carry out further energy management assignments focusing on electricity use in buildings. As Richard Weavers says: “ADIAN has a very honest approach. They are very customer focused, and very environmentally aware. These are three things that Land Securities very much believe in, so there is an affinity between the two organisations.” For more information on this and other projects visit www.adian.co.uk or call Robert Gevargiz on 01908 306 018. - ENDS -
Notes to Editors About ADIAN: Independent energy and sustainability consultant ADIAN Consulting Ltd was founded in April 2000 to assist regional, national and international organisations in adapting their business philosophy and operations to a low carbon strategy. The success of the Milton Keynes based company is built on their passion to help companies save money, achieve lower carbon emissions and comply with legislation. Working with clients in the education, property, charities, leisure, commerce, health, local government and manufacturing sectors, ADIAN Consulting has helped to identify and develop sustainable low carbon strategies that are proven to improve reputation, reduce operating costs, decrease CO2 emissions and mitigate legislative risk. www.adian.co.uk Contact: For further information, interviews and images please contact: Celia Bristow, Director, beanwave T: 07715 181 944 [email protected] James Bristow, Director, beanwave T: 07545 921 868 [email protected] www.beanwave.co.uk
ADIAN EDITORIAL
WHY CONCERN ABOUT CLIMATE CHANGE IS A WASTE OF TIME Historically almost all decisions have been made on economic grounds. Training, from primary school to business school, has taught us to gauge project success purely on return on investment. But as the environmentalists muscle their way in they are proposing to introduce all manners of complications. Robert Gevargiz of ADIAN Consulting argues why businesses should continue to use money as the key success measure and ignore unnecessary distractions. As the second decade of the 21st century begins two very different concepts with inherent tensions begin to influence our lives. The first is the imperative to learn to live sustainably so that the planet can continue to support life (as we know it) for future generations. The second is a political necessity to continuously improve people’s standard of living. The trouble is that improving people’s living standard needs more money. To have the money to improve things governments and public sector institutions have to spend more. This means they have to rely on higher earnings through taxation income. For their staff to lead more comfortable lives businesses have to pay them more in wages. This means employers have to earn more, usually by growing in size, to support higher government spending and higher wages. Growing in size means needing more resources which, in turn, costs more money. To pay for more resources businesses have to increase earnings. If it is not possible to earn more, because the overall economy is not able to absorb growth, then saving money becomes necessary. Whichever way we look, the traditional short term economic model uses money as a measure of economic success. So where does this leave our first imperative? How do we deal with the need to live more sustainably and improve the standard of living for all? The most effective tool that is currently available to economists and environmentalist alike is energy efficiency. Although it doesn’t provide all the answers it provides some. As the use of energy is universal its economic and environmental impact is significant. In recessionary times thrift through a cut in energy spend can partly make up for lost
opportunities in higher sales. It is quite common for businesses to have energy spend which is equivalent to 10-15% of their net earnings. This means any fall in energy spend directly raises the profit margin. Raising profitability through energy efficiency and thus having money to invest in new projects fits in with the traditional economic model. A fall in energy use, however, also satisfies the sustainability imperative. It is rare to have a single measure that satisfies two interests that are inherently in conflict.
Energy efficiency and better
energy management tick both boxes perfectly. Let’s look at this more closely. There are several ways of making a noticeable cut in energy costs. Energy price fluctuations affect profitability and disposable income for businesses and individuals. Start with reviewing the energy buying process. Is your business good at buying electricity and gas or do you leave it to chance? Do you have someone in the business who knows how the energy markets work or do you sign a last minute agreement based on an offer from the local energy supplier? Are your contracts still valid or did they end many months (or years!) ago? If you don’t have a valid contract your energy rates will be at least double the normal rates. This will be a significant drain on your earnings. Your business pays for electricity metering. This is normally a quarterly bill which may pass unnoticed. There are ways of reducing this cost too but it will require careful investigation to find out what suits the business best. Electricity and gas tariffs (the construction of the bill) also have a large bearing on cost. A frequent review of tariffs is essential. In many cases old tariffs are being applied which do not fit in with current business activity. This means the business may be spending far too much on its electricity or gas. Annual savings amounting to £50k/£60k are not uncommon. All of the above take time and need someone knowledgeable internally to perform the tasks. If you haven’t got the expertise or the resource then seek advice from reputable specialists. There are consultants and brokers who specialise in energy procurement but choose wisely. Check on personnel and track record. After assessing better energy buying opportunities it is time to look at how to use less energy. Regardless of the business you are in (be it commerce, industry, public
sector, education etc) 10% to 25% of the energy used could be reduced through efficiency improvements. The best way to start is to commission an energy survey of your buildings and operations. If your energy spend is greater than £30k per annum the Carbon Trust provides free surveys. The survey will identify what opportunities there are at your site and rank them by the traditional simple pay back model. To satisfy the sustainability imperative the survey will also quantify how much CO2 may be saved through efficiency gains. If you are a small to medium enterprise (SME) interest free loans and grants may be available to assist with implementing the identified measures. Contact your energy consultant for advice. If you haven’t worked with a consultant before call the number below and find out more about the next steps. In our experience energy projects pay back handsomely. For most projects the breakeven period is anything from six months to two years. These are very attractive rates of return that are not readily available elsewhere. They satisfy the traditional money measures model and by saving CO2 they tick the environmental and climate change model too. So why be concerned about climate change? Simply take action now. Move your business forward by making it more energy efficient. Reduce CO2 emissions and improve business profitability at the same time. Communicate this to your customers and industry peers; they will be most impressed. To find out more about Energy Efficiency contact Robert Gevargiz at ADIAN Consulting (www.adian.co.uk). - ENDS Contact details to be printed: www.adian.co.uk Tel: Robert Gevargiz, Director, ADIAN Consulting on 01908 306 018. Email: [email protected] NOT FOR PUBLICATION For further information, please contact Celia Bristow on Tel: 07715 181944 or Email: [email protected]
REBECCA VAN OMMEN / SAM ARMSTRONG
ENERGY EFFICIENCY
Why concern about climate change is a waste of time Robert Gevargiz argues that businesses should continue to use money as the key success measure and ignore any unnecessary distractions...
ENVIRONMENT
A
s the second decade of the twenty-first century begins two very different concepts with inherent tensions begin to influence our lives. The first is the imperative to learn to live sustainably so that the planet can continue to support life (as we know it) for future generations. The second is a political necessity to continuously improve people’s standard of living. Living standards, however, cost money to improve - money which individuals, businesses and ultimately governments must earn. Yet when money can not be further earned through business (as a result for example) of economic constraints, it must be saved by business. The most effective tool that is currently available to economists and environmentalist alike is energy efficiency. Although it doesn’t provide all the answers it provides some. As the use of energy is universal, its economic and environmental impact is significant. In recessionary times thrift through a cut in energy spend can partly make up for lost opportunities in higher sales. It is common for businesses to have energy spend which is equivalent to 10 to15 percent of their net earnings. This means any fall in energy spend directly raises the profit margin. There are several ways of making a noticeable cut in energy costs. Energy price fluctuations affect profitability and disposable income for businesses and individuals. It is thus wise to review the energy buying process. Do 108 March / April 2010
you have someone in the business who knows how the energy markets work or do you sign a last minute agreement based on an offer from the local energy supplier? Are contracts still valid or did they end many months ago? If you don’t have a valid contract your energy rates will be at least double the normal rates. This will be a significant drain on your earnings. Businesses pay for electricity metering. This is normally a quarterly bill which may pass unnoticed. There are ways of reducing this cost too but it will require careful investigation to find out what suits the business best. Electricity and gas tariffs (the construction of the bill) also have a large bearing on cost. A frequent review of tariffs is essential. In many cases, old tariffs are being applied which do not fit in with current business activity. This means the business may be spending far too much on its electricity or gas. Annual savings of up to £60,000 are possible. After assessing better energy buying opportunities, look at how to use less energy. Regardless of the business sector, be it commerce, industry, public sector or education,10 to 25 percent of the energy used could be reduced through efficiency improvements. Commissioning an energy survey of your buildings and operations is a good start and, if your energy spend is greater than £30,000 per annum, the Carbon Trust provides free surveys. The survey will identify what opportunities there are at your site and rank
them by the traditional simple pay back model. To satisfy the sustainability imperative, the survey will also quantify how much CO2 may be saved through efficiency gains. Small to medium enterprises can receive interest free loans and grants are also available to assist with implementing environmental measures. Energy efficiency projects can pay back handsomely. For most projects the breakeven period
The most effective tool that is currently available to economists and environmentalist alike is energy efficiency is anything from six months to two years. These are very attractive rates of return that are not readily available elsewhere. They satisfy the traditional money measures model and by saving CO2 they tick the environmental and climate change model too. So why be concerned about climate change? Take simple actions now. Move your business forward by making it more energy efficient. Reduce CO2 emissions and improve business profitability at the same time. Then communicate this to your customers and industry peers; they will be most impressed.
FOR MORE INFORMATION Contact Robert Gevargiz at ADIAN Consulting Email: [email protected] or visit: adian.co.uk
