Energy efficiency and low carbon are great for growth, new report
Written by Mark Sait
Posted on November 14, 2014
We are seeing strong and growing understanding in business that energy efficiency and low carbon policies are great for growth.
This week, the latest Management Consultancies Association (MCA) Think Tank report challenges assumptions about sustainability and business.
‘Low Carbon, Higher Growth’ suggests no new legislation or regulation. Instead it calls on business and government to work together to develop more pragmatic language, action and incentives around sustainability. The low carbon agenda should be recast as an opportunity for enterprises to become more efficient and profitable.
The MCA report shows that the idea of sustainable energy and resource usage has become uncoupled from its roots in good business values, such as the careful husbandry and management of supply. It makes sense, then, to devote more thought to how to promote the financial case for reducing emissions.
This is at the core of what we do here at SaveMoneyCutCarbon and winning long-term business with companies that can see how low carbon means energy efficiencies that deliver big savings on costs.
Paul Connolly, Director of the MCA Think Tank, says: “The report promotes a better conversation about low carbon. It’s not aimed at green enthusiasts as such, but at hard-headed business people, who may harbour doubts about man-made climate change. Frankly, in terms of potential efficiency gains and growth opportunities, there’s nothing here that they couldn’t sign up to.”
Alan Leaman, MCA chief executive, adds: “We hope that this report will provoke debate and action. Many MCA members are already working with their clients to identify and exploit the commercial opportunities that low carbon brings. But many are still being missed. We should seize the economic benefits now.”
Higher growth
At the heart of the report is the point that the current political policy of adjusting to a low-carbon economy is contentious and a body of opinion that fears this transition will impede economic growth.
‘Low Carbon, Higher Growth’ aims to provide ample evidence against that together with 10 recommendations for business-government joint action, highlighting, among other key points the benefits of energy service company (ESCO) models to focus on innovative financing methods.
The promotional recommendations also include working with consumer groups and companies on an information framework for low-carbon manufactures as well as business-government collaboration on the language of ministerial pronouncements, campaigns and other references to low carbon and sustainability.
We wholeheartedly support the recommendations that business leaders should work to identify examples of circularity which might require initial investment support but would realise significant gains in terms of cost reduction as well as identifying a pragmatic and genuinely market-orientated green finance and accounting practice.