One in five firms see energy as a tradable asset

Research published by Centrica Business Solutions has highlighted the growing importance of energy and sustainability for UK businesses, and how this is changing practices in the advent of the UK’s net-zero legislation. 

Out of around 600 companies surveyed, the results reveal that sustainability and environmental responsibility are now viewed as the third most important organisational priority, sitting behind efficiency and strong financial performance.

This represents a jump up of three places from two years ago.

One in five companies (22 per cent) said they now view energy as a tradable asset, rather than just simply a cost, with 30 per cent of businesses with on-site generation selling energy back to the grid.

And more than two thirds of businesses now have an energy strategy, with specific targets and budgets, an increase on the 58 per cent in 2017.

Currently, 45 per cent of respondents have a dedicated role or department for energy, sustainability, and environmental issues, while 81 per cent say they aim to increase resources dedicated to energy management.

However, with ever increasing digitalisation, businesses have a deeper reliance on a secure and resilient energy supply. 34 per cent said that energy security was a significant risk to their long term success, up from 28 per cent previously. Nearly a quarter of those polled said that they prioritised a reliable energy supply over all other energy related considerations.

As a result of the growing reliance, seven out of 10 recognise the need to be more flexible with how they generate and use energy.

Of the two thirds of businesses currently producing energy, the vast majority, 81 per cent, have plans to increase their on-site generational capacity in the next five years.

Ian Hopkins, sales director at Centrica Business Solutions, said: “Our research shows that UK businesses are responding to market forces around environmental performance to ensure their long-term success, we call this end-state the sustainable business. One action many are taking is to seize control of their energy needs, effectively becoming power plants in their own right. Crucially, we’re finding that the firms doing this tend to be the most economically sustainable and resilient businesses.

“Speaking to our customers, they’re seeing a number of wider benefits as a direct result of investing in on-site energy generation. For example, many report improved brand perception because they can better demonstrate energy efficiency and low-carbon credentials, while others are able to create additional revenue from selling electricity back to the grid.

“The government’s net-zero target puts the country right at the forefront of the global climate change agenda. Businesses have an important role to play and the research indicates that today’s sustainable businesses see energy as an opportunity and a strategic asset, not simply a cost.”