Member Article

Want to put sustainability on the corporate agenda? Start with your energy contract

In the past few years, companies have been under an ever-increasing amount of pressure regarding consumers’ expectations of businesses’ sustainable commitments. “In a world of green clutter, conscious consumers expect companies to do more than make eco-friendly claims. They demand transparency and accountability across every level of business practice” - said Raphael Bemporad, a founding partner of BBMG. Most companies accept some sort of social responsibility beyond simply making a profit for shareholders. However, when current issues compete for decision makers’ attention, blue sky thinking about corporate greening is often pushed aside.

I’m astonished to hear about companies which put a lot of effort into energy efficiency, ignoring the first, crucial step - ensuring the best possible price per kWh. Did you know that using an automated procurement software you can complete the process within 5 working days? That means it’s very easy and quick to demonstrate a saving - and get the boardroom to start paying attention . Research unveiled that many companies are reluctant to invest in long-term energy cost saving initiatives. A quick win in procurement can direct decision makers’ attention towards complex energy saving projects, which often take longer than 18-36 months to be profitable.

Getting directly involved in the buying process can help realise that there are considerable savings to be made. As reported by Ernst & Young, for some companies, a 20% cut in energy costs has the same bottom-line effect as a 5% boost in sales. Additionally, the decision-makers can see how easy it is to choose green energy. Currently only 8% of energy buyers consider “buying green” to be a purchasing criterion. That means that even aspiring for a proportion of power from renewable sources can put a company ahead of competition, when it comes to green initiatives.

Consequently, taking charge of business energy contract and making the first steps towards sustainable solutions can be a trigger to venture further into the sustainable business. In a volatile economy, it’s priceless to find a “win-win” business solution. One simple procurement decision demonstrating saving to the executives and commitment to decarbonization to the clients is certainly one of them.

This was posted in Bdaily's Members' News section by Open Energy Market .