In the last couple of weeks, I’ve seen one of our major manufacturers, JLR, announce its new EV range, brokers throwing the Triad word around before the autumn and EDIE has released its Sustainability in Manufacturing report. ESOS is back and Energy Reduction is truly on Manufacturers’ radar.
Background
When questioned, manufacturers came up with 5 main drivers encouraging them to make progress in Energy Reduction; Resource Security, Globalisation, Cost Reduction and Revenue Opportunities, CSR and Competitiveness and Customer Pressures. The figures are staggering, with a potential for £10 Billion of savings and an increase of 300,000 jobs as a result of Clean Technology investment, so why hasn’t more been done in light of the fuss around ESOS Round One?
Taxation or Legislation?
In the survey, 40% of companies said that targets should be tougher. Whether that means increasing the taxation levels or making the likes of the ESOS recommendations compulsory remains to be seen. These measures have certainly focussed the minds of those involved, however, it’s far from a resounding success. Efficient Power Solutions are well aware that there are reports gathering dust, with no action since the first level of reporting. Will the second round be any more effective?
Peer Pressure brought to bear
There’s a massive appetite for collaboration, Energy Managers and engineers network regularly and share ideas. 27% cited Unilever and Tesla as role models. It’s worth looking at the attitude of the former in this context
“There is no doubt that the Unilever Sustainable Living Plan is making us more competitive by helping us to build our brands and spur innovation, strengthen our supply chain and reduce our risks, lower our costs, and build trust in our business. It is helping Unilever to serve society and our many consumers, and in doing so, create value for shareholders.”
Paul Polman, CEO, Unilever
Sustainability clearly forms a massive part of their strategy, right through the chain, linked into marketing and visible CSR. Economies of scale obviously play their part. However, it’s only possible if it’s seen as an opening and not a burden.
Progression
It’s an increasing thought that manufacturers may make moves similar to those a decade ago. We know that our clients are ready to invest heavily in new technology as a means of engineering growth. In order for this to happen, management of Energy Costs, seen as a risk and therefore still often under the H&S umbrella, needs to be taken as an opportunity. The leaders in this sector are taking things away from the “take-make-use-waste” resource model into one of a “closed-loop” function and, at the same time, securing their own supply chains. In this way, they can wrest control away from energy suppliers, we can support you if you have similar ambitions, turning it to your advantage.
For unbiased advice on any of these topics, contact Dave or Kevin at Efficient Power Solutions on 01909 569016.
