Why your business needs a Business Energy Strategy

Business energy is no longer just a commodity or an expense. Instead, it’s gained a new guise, one that’s been steadily rising up company agendas across the entire country – and overlooking it could be costly.

More than ever, economic and environmental considerations are leading businesses to create fully-fledged business energy strategies to go along with their wider corporate plans.

But what exactly is an energy strategy, and why are they important? We’ll answer both, and show you how to put one into action too, below.

What is an energy strategy?

Large corporations have a lot to consider in this day and age: corporate social responsibility, changing business trends, increased awareness of environmental considerations – the list goes on. These considerations can re-contextualise how businesses operate; as well as new risks, as they are what open up a business to new opportunities too.

Alongside this, the energy sourcing and consumption choices a company make have a massive effect on its cost structure. A business energy strategy, then, is a way of future proofing operations, acting as a conscious reminder of energy usage and outlines the approaches a business can use to manage the environmental and climate impacts its energy use creates.

Why do you need a business energy strategy?

There are plenty of reasons as to why businesses are opting to create business energy strategies, including the below:

• Increased compliance: With the UK mandating all greenhouse gas emissions be brought to net zero by 2050, businesses run the risk of facing fines if they don’t play their part in reducing the country’s carbon footprint.
  A business energy strategy shows a business’ commitment to becoming more sustainable – one that will stop them from feeling the repercussions of non-compliance.
• Improved cost effectiveness: Without a strategy, energy is just another cost. With a strategy ingrained into wider business plans, however, a business can make its energy usage far more cost-effective by outlining the steps it will take to manage and reduce it.
• A future-proofed business: Solar, wind and other renewable technologies are where the future lies. By creating an effective plan and investing more into cleaner and greener energy offerings, a business can avoid having to catch up to future developments as they emerge. A business energy strategy will make sure that doesn’t happen by outlining its next moves with regards to renewables.
• Greater staff engagement and retention: Sustainability is an increasingly important issue, especially with younger people, who could see a lack of concern for the planet’s future as a deal breaker. Committing to greater sustainability efforts in the strategy – and then following through on them – clearly shows the business’ values, helping to keep hold of staff for longer.
• Better brand reputation: Much like it has on staff, energy efficiency has a similar effect on the public at large. The business energy strategy outlines the actions the business will take to improve its relationships with consumers and suppliers through more energy efficient activities. It’s not just good optics either; consumers are choosing to buy from brands more and more if their corporate social responsibility is clear to see.

Steps to create and implement an energy strategy

 The benefits of an energy strategy can’t be understated. But how can you get one off the ground? Give the business some more direction with these effective tips…

• Know your business energy needs

How much power is the company currently using? Where does the business’ power come from? What strategies can be used to reduce your carbon footprint? Once you know the answers to such questions, it becomes easier to create an energy strategy.

• Set sustainability targets

With the data you’ve gathered from the first step, you’ll then need to set energy goals that align with the short- and long-term business objectives. Whatever they are, make sure they’re realistic and achievable.

• Plan your energy journey

What are the actions you’re going to take to achieve these targets? You’ll need to detail your budget, risks and costs that come with these actions, as well as whether or not they’ll factor into your company policy, and any legal ramifications they may have.

• Put together a team

Installing new equipment, implementing new company policies, switching over energy sources – it all takes people power. Who’s going to put the changes in place, be responsible for each part of the business’ project and act as sustainability energy champions once everything is up and running?

• Watch out for opportunities

Your actions won’t exist in a vacuum, so you should also factor in how they’ll affect the business as a whole. From the products to the supply chain to marketing, what can the proposed strategy do to provide additional future-proofing, keep costs to a minimum and help the business in the face of always-changing energy regulations and legislation.

• Report your progress

Of course, you’ll need to report your processes and actions. Not only does it keep the business on track towards success and help with compliance once more, that transparency is going to be vital from the perspective of public trust too.

• Assess your results

Much like reporting, analysing the results against set targets is essential. By doing so, you’ll know which goals you’re meeting, which you aren’t, and note anything you may need to change going forward.

SEFE Energy is one of the UK’s leading business energy suppliers, helping thousands of businesses manage their gas and electricity contracts. To find out more about what we can offer your business, visit the homepage or call us today on 0161 837 3395.