Green shoots of a different kind

Old industry has declined. What are businesses doing to replace it with greener alternatives?

IT IS estimated that within the next 10 years some 1.2 million people in the UK will be employed in the green sector as a consequence of current investment proposals made by the government. But just providing some extra business support and aiming to raise awareness within the Department of Economy and Transport is not enough to bring about the wholesale change required.

With green jobs offering such potential, can recession-hit Wales afford to be complacent about a greener future?

More efficient use of energy in our day-to-day lives can make a major contribution to the struggling economy and make a significant impact on the UK’s ambitious CO2 reduction targets. Policy frameworks and financial incentives are making it easier for people to do this, but action in the home still comes down to the personal choices made by each of us. Despite the obvious financial and environmental benefits, a low carbon lifestyle is still not commonplace in Wales.

Almost half of Wales’ carbon emissions come from the energy we use at home and in our daily travel. Every Welsh household creates about six tonnes of carbon dioxide each year, which is twice as much CO2 as the average car emits during the same period. However, by consuming less energy in the home, savings of around £300 a year in fuel bills and over 1.5 tonnes of CO2 can be achieved.

People, and businesses too, often don’t understand their energy bills. Recent research found that 19% of people in Wales are unable to decipher them and fail to make the link between usage and amount charged. This connection needs to be made to enable people to save money and feed this new found disposable income back into the recession-hit economy.

Generally energy efficient home initiatives to date have been largely focused on voluntary action among homeowner occupiers. However, this has not yet brought wholesale improvement in the housing stock’s energy efficiency.

With 96% of people stating that they would use a smart meter to help save energy on their heating bills, we must ask why smart meters are yet to be rolled out across the UK. Furthermore a quarter of people questioned in Wales stated that their decision on whether to buy or rent a home would be influenced by information on the Energy Performance Certificate, so evidently real investment in domestic retrofit programmes is required. This needs to be matched with support for businesses to meet the demand, as well as investment in skills and training. Homes should have ‘whole house’ energy efficiency measures added at key trigger points in their lifecycle, and all new houses must be built to ensure maximum energy performance.

Transport is another area that needs to be addressed as it accounts for 28% of all UK emissions and this continues to grow year on year. People across the UK need to reduce transport CO2 emissions through adopting a ‘travel hierarchy’ of travelling less, travelling more efficiently and choosing the most efficient mode of transport.

Businesses also need to take responsibility for the way they operate and understand the consequent effect they have on both the economy and environment. As a starting point, organisations should review their fleets and ensure that they are being run as efficiently as possible. There are a number of factors that should inspire organisations to assess the environmental impact of running their fleets.

Firstly, running vehicles costs a lot of money – and it’s not going to get cheaper any time soon. With fuel prices edging ever higher, it makes sense to limit the number of business miles that employees drive and if that’s not possible, to make sure they travel in the most cost-effective way. High costs of fuel, insurance and a changing tax regime combine to make finance directors twitchy.

Secondly, companies in the business-to-business sector can add to their proposition when tendering for big contracts if they can produce their environmental credentials, which includes a robust fleet policy. Thirdly, customers increasingly demand that companies behave responsibly. A commitment to the environment is no longer an optional part of the business agenda. It’s a must-do, particularly for companies that are household names.

Drivers themselves have much incentive to favour low-emission vehicles. Forthcoming tax breaks for those driving vehicles that produce 120g/km of CO2 or less, together with an increasing choice of cars below that barrier should improve the efficiency of Britain’s company car fleet.

With around three million company cars on the roads, emitting an estimated seven million tonnes of carbon dioxide every year, company vehicles have a huge impact on the environment. Yet the ability to get around to meet customers, suppliers and partners oils the wheels of commerce and public life.

So if business travel is a fact of life, can it be better managed? The Energy Saving Trust thinks so and estimates that British businesses could save around £3 billion a year by switching to greener fleets. To help organisations to assess their fleets the Energy Saving Trust is launching its successful Green Fleet Review programme in Wales. This free review, conducted by expert consultants, provides companies with a comprehensive tailored report with clear actions to take.

The Green Fleet Review will help organisations in Wales to operate their fleets more efficiently – better, cheaper and greener. It’s the first step in moving the Welsh economy towards a cleaner and potentially more profitable future.