Beat recession by going green UK plc told

Alarming new statistics revealing more than half of the nation’s businesses have not yet considered their contribution to climate change have been released today.

All businesses need to get involved and realise that carbon cutting measures can be for the greater good, and also boost individual economic success too.

The statistics are from a survey of businesses from across the UK and show that two-thirds of Britain’s bosses are unaware that a new law (the Carbon Reduction Commitment) will soon compel them to account for their companies’ carbon emissions.

The survey was commissioned by the charity Business in the Community ahead of the third Prince’s May Day Summit on 1st May. The Summit will bring together the Prince’s May Day Network of over a thousand businesses, and aims to reverse the current lack of awareness of the business opportunities of taking action.

One finding from the survey showed that many bosses did not see the commercial benefit of cutting carbon emissions and that 17% of bosses admitted to scaling down their focus on carbon reduction in the current economic situation.

Crucial cost savings

But the Prince’s May Day Network businesses have shown that taking action can bring many business benefits and can deliver crucial cost savings during the recession.

For example:

• BT has embarked on a global energy saving campaign designed to save 75,000 tonnes of CO2 and avoid costs of around £15 million by March 2011
• Since the launch of its Climate Commitments, the largest package of environmental and sustainability targets made by any major UK energy company, EDF Energy has, through various measures, saved in excess of £1m on its energy bills and transport costs linked to CO2 savings of 5,500 tonnes
• Lloyds TSB has reduced its CO2 emissions by more than 64,000 tonnes since 2002 with savings of £2.5 million a year from energy efficiency
• In 2007/2008 combined heat and power projects saved United Utilities £3.9 million by generating 83GWh of renewable energy and saving the equivalent of 43,000 tonnes of carbon.
  

Stephen Howard, Chief Executive, Business in the Community said; “So far we have attracted 1,170 businesses, big and small, from around the UK to join the Prince’s May Day Network. It is more important than ever that businesses wake up to the urgency of the threat of climate change “

During a recession businesses can save money by being more energy efficient and investing time and money in low carbon solutions now will put businesses in a more competitive position as we come out of the recession.”

At the Summit, 150 CEOs will hear from HRH The Prince of Wales, Ed Miliband MP, Secretary of State for Energy and Climate Change and John Ashton, FCO Special Representative on Climate Change. Arctic explorer Pen Hadow will be addressing the Summit from the Arctic and challenging attendees to do their bit to tackle climate change.

Key survey findings

Key revelations from the May Day survey include:

• Over half of UK bosses (54%) have not yet considered modifying processes because of climate change. For smaller companies with fewer than 50 employees, this figure leaps to 74%.
• Only 29% of bosses, including directors and board members, are aware their company is affected by Carbon Reduction Commitment (CRC) legislation which comes into force next year.
• More than 40% of larger companies said they needed help and advice on the new laws.
• Among firms with 250+ employees, 56% of bosses have measured carbon emissions, 60% have set targets to reduce them, and 64% have audited energy consumption.
• Almost half (49%) of UK companies have adopted the most common carbon saving measures, such as switching off lights and ensuring computers are turned off at the end of the day.

Howard added; “We still have a long way to go and these latest statistics show that too many businesses are ignoring this urgent business challenge. With businesses accounting for 40% of the UK’s carbon emissions, we can’t afford this kind of inertia or complacency.  All businesses need to get involved and realise that carbon cutting measures can be for the greater good, and also boost individual economic success too.” 

This year the Summit will take a particular focus on how small and medium size enterprises (SMEs) are managing to respond to climate change, and what support and advice they need. Business in the Community has been working with the Department of Energy and Climate Change on a consultation with SMEs on what support they need to achieve the government target of an 80% reduction in carbon emissions by 2050.

Ed Miliband, Secretary for State for Energy and Climate Change, DECC said:

"It’s vitally important that businesses – large, medium and small –  understand the key role they can play in fighting climate change as well as capitalising on the opportunities a sustainable and low carbon recovery will present.

“The Government is helping small and medium businesses go green by providing interest free loans for energy efficiency totalling £100m over the next two years. Saving energy will save businesses money as well as playing a part in reducing the UK's carbon emissions to fight climate change."

“In the last year the Government has written to 10,000 organisations, conducted workshops across the country and, last month, launched a third public consultation to inform large organisations about the forthcoming Carbon Reduction Commitment. When it starts in 2010 the CRC will mean large organisations have a strong incentive to reduce their carbon emissions, and at the same time make real savings on their energy bills.”

ENDS

For more information please call Clare Haines on 020 7566 8758 or 07786 566 136 or clare.haines@bitc.org.uk
or Vicky Gashe on 020 7566 8794 / 07715 510 383 or vicky.gashe@bitc.org.uk
or Zoe Arden on 07770 915 997.

Notes for Editors

• The survey took place during March and April and involved interviews with 1,695 workers, including 266 decision makers from company sizes ranging from 1 employees to over 10,000 and across varying industry sectors. The Survey was commissioned by BITC in partnership with DLA Piper and United Utilities.  A copy of the research is included in this press pack (pdf 776 kb)
• The Prince's May Day Network is the UK’s largest group of businesses committed to taking action on climate change.  Over 1,170 businesses of all sizes and from all sectors have signed up so far, and collectively they promise to play a powerful role in reducing the UK's carbon emissions. The Network was created in 2007 at the request of the HRH Prince of Wales, is convened by Business in the Community and helps businesses realise benefits from taking action on climate change.  It helps them through practical support, and by profiling their low carbon activities.  It is sponsored by businesses that are taking a lead on climate change, and partners with key business support organisations.For more information about this year’s May Day Summit, go to www.maydaynetwork.com
• Business examples - Other examples from business that demonstrates that taking action to tackle climate change can bring many business benefits and can help them survive the recessiono   By reducing the thickness of its plastic bottles, Alliance Boots has saved 90 tonnes of plastic and £2,100 annually

- BSkyB has reduced its carbon emissions by 16% over the past four years and by launching auto standby on its products has saved customers save customers c.£20m, and c90,000 tonnes of CO2 a year.

- The Carbon Trust predicts that taking action on climate change could save UK businesses up to £1 million a day collectively.

- Energy consumption at 3 of DLA Pipers offices in 2008 was 32.4% less than in 2006. This equates to a reduction in CO2 emissions of 1,154 tonnes, and represents cost savings if £150,000

• The Carbon Reduction Commitment (CRC) is a key component of the UK Government’s Climate Change Bill, requiring organisations with an annual energy consumption of around 6,000MWh/yr, or £500k annual spend to report their energy-related carbon emissions. Organisations within the CRC scheme will have to purchase allowances to cover their emissions, set initially at £12/tonne CO2, with all payments ‘recycled’ among participating organisations according to their place in a performance league table.
• Company Example EDF Energy has run half day workshops, attended by over 700 energy managers from a variety of businesses, setting out the mechanics, risks and opportunities of the CRC scheme. The rationale for preparing for the CRC is compelling. Not only are there savings to be made by implementing cost effective energy efficiency initiatives, EDF Energy also warns that the penalties for non compliance with the CRC such as by not having sufficient emissions allowances are 3 times the cost of carbon allowances themselves.