Why Procurement Leads to Net Zero and Business Sustainability
Net zero ambitions for UK businesses are accelerating. But what plans have UK businesses made for sustainability?
Northern Gas and Power discuss why smarter procurement leads to net zero and business sustainability.
A more sustainable future is becoming a much clearer reality. Renewable energy is set to overtake fossil fuels as the largest source of electricity within the next five years. And investors are pumping more money into sustainability than ever before.
Many businesses have already made net zero pledges. For instance, UK supermarket chain, Morrisons, this month pledged to be supplied by net zero carbon British farms by 2030. Also, by 2030, IKEA hope to become ‘climate-positive’. O2, Mitie, CMS and WHSmith will all hope to achieve net zero by 2025. The Canary Wharf Group, Apple, the BBC, Sky and Google all hope to achieve net zero by 2030. The list goes on and on.
Looking for sustainability solutions is vital for businesses ahead of a net zero UK business landscape. Most businesses are yet to work out their route to net zero. It’s vital for these companies to explore their options to find the best solution for their business.
Sustainability with profit for your business
We all know how and why it’s important to preserve our planet. It’s what commits us to sustainability.
Sustainability can be a profitable enterprise for businesses to explore. For example, sustainability leads to increased energy and cost savings and additional value of up to 70% of EBITDA according to McKinsey.
Considering energy management solutions to make savings on energy consumption and cost leads to greater control of finances. Energy management systems can target wasted energy consumption, allowing you to optimise your energy practices.
With energy management hardware, you can monitor individual meters and spot anomalous patterns and behaviour ahead of time. This allows you to act early, preventing costly repairs later down the line.
The changing role of energy procurement
Procuring with the right energy partner allows you to expand your access into the supplier market. As companies begin to engage with renewable energy options, having access to a wider range of suppliers will ensure that you’re receiving the best deals for your business energy.
The drive towards net zero has changed the role of energy procurement. Now, as well as protecting the business from price hikes and instability within the market, energy procurement also looks to collaborate and innovate in ways which benefit customer growth and success.
Effective energy procurement cannot focus exclusively on cost-cutting. It needs to offer additional packages, embed net zero principles and deliver on key business strategies which complement sustainability and business growth.
How procurement helps drive net zero
Energy procurement has a significant role moving forward in helping businesses meet their sustainability and net zero targets. The purpose of energy procurement is traditionally focused on reducing energy costs for businesses. But as we move closer to a net zero business landscape, the same focus must be applied to sustainability and the impact businesses have on emissions. Energy consultancies need to deliver a diverse package of services to benefit their customers.
With a portfolio greater than Ireland’s annual consumption (30 TWhs), Northern Gas and Power are the UK’s largest energy consultancy. Providing professional energy services to over 20,000 clients globally, Northern Gas and Power have saved businesses millions on energy.
We’ve built one of the largest and most dependable networks in the energy sector using our proprietary systems. In addition to our procurement offering, we provide expert advice in flexible purchasing, energy services and management technology.
Find out more on our services here.
Rasheed Ahmed, 26 March 2021