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Business Guidance

Part 2: A Leaner and Greener Roadmap

Contents

Contents

A Leaner and Greener Roadmap

A process for managing energy costs and carbon emissions in your business.

The single most important determinant of successful energy management is the commitment and leadership of the business owners and senior managers.

Only senior management can make this topic an strategic business priority. Only senior management can create the conditions for change to happen.

Assuming that managerial support exists, the diagram below shows a good approach to energy management. You will see that it is the same cycle that would apply to the management of any process or system within your business.

  1. Where are you now? This is your Starting Point.
  2. Where do you want to get to? This is your Target.
  3. How will you get there? This is your Action Plan.
  4. How will you keep track of progress? Use our Leaner & Greener Energy Spreadsheets to help you measure and monitor.
  5. How will you keep everyone informed? Schedule times for review and reporting within your business.

Leaner greener roadmap.png

2.2 Best practice step-by-step approach to managing energy

Step 1 : Appoint a Green Champion or Green Team

Appointing a Green Champion or a Green Team is the very first step in saving energy and costs. In a small business, one person may be responsible for this – a Green Champion. In a larger business, it is wise to bring a team of people together – a Green Team.

They must have both the responsibility and authority to drive your cost-saving and carbon-saving ambitions. Team members may also need training, meetings, resources and above all time to lead through the rest of the steps below.

Step 2 : Gather data on Annual Energy Use (kWh) and Energy Cost (£) in your business

Top Tips
The very first job of your Green Champion or Green Team is to establish your Starting Point. The task is to find out how much energy, in kilowatt hours (kWh), that your business used in the last year and how much that energy cost (£). To do this, you need to be able to measure all your sources of energy (e.g. electricity, oil, gas, wood) in a common currency i.e. kWh. This in turn will allow you to determine the Average Unit Price (AUP) of each one, which allows you to compare the costs of the different energy sources.

(Use Leaner & Greener Energy Worksheet 1 - Section 3.1)

Step 3: Establish your benchmark against which you will measure future performance

Top Tips
Benchmarking allows you to track energy use over time. It allows you track your own performance and also to compare your business against others. When you have worked out your annual costs and consumption, you can establish kWh and cost per person/per metre/per cover/per room/per ticket – whichever benchmark is the most relevant for your business and that you can track consistently over time. Make note of how you calculate your benchmark so that you and other team members calculate it in the same way each time. That’s the only way to ensure you have comparable data.

(Use Leaner & Greener Energy Worksheet 1 - Section 3.1)

Step 4: Identify the biggest users of energy in your business and rank them from highest to lowest

Top Tips
Now it’s time to get behind those baseline figures and understand what’s
driving them. How can you know which items of equipment are costing you the most? 

(Use Leaner & Greener Energy Worksheet 2 – Section 3.2)

You will need to know the kilowatt rating of each piece of equipment*, approximately how long it is on for every day and your Average Unit Price (which you calculated in Step 2). The worksheet will help you work out exactly how much money each piece of equipment costs over the course of a year. You may be surprised! You will then be able to prioritise actions around equipment.

Step 5: Observe staff and customer behaviour in managing and using equipment

Top Tips
Take time out to walk around your business focusing specifically on energy
usage. Just observe how things are done in your business on a day-to-day
basis. Ask yourself ‘where are we wasting energy?’ Consider where changes in behaviour or standard practice could lead to significant savings. For example, are doors left open while the heat is on? Is the oven switched on much earlier than it needs to be? Write down what you observe and where you believe improvements could be made. Try not to judge or blame. Right now, you’re just gathering information.

Step 6: Evaluate the options for replacing your current energy sources with renewable energy alternatives

Top Tips
Renewable sources of energy reduce your carbon footprint and reduce your costs over the longer term. Incorporating renewables will also minimise your exposure to external price increases. They do require research and investment so may take some time to work through. That investment can be recouped over time based on savings achieved. Once the initial payback time has elapsed, your energy will be effectively free aside from maintenance costs. The options to consider are : Solar
PV Panels, Solar Thermal Technology, Heat Pumps and Biomass.

Step 7: Develop your Energy Action Plan (Use the Leaner & Greener Energy Action Plan Template)

Top Tips
By now, you have great information on where and how energy is used in your business, as well as how much it costs. Once you know which equipment and operations use the most energy, determine best ways to cut that use without impacting the business. The plan should include immediate and short-term actions as well as medium to long-term ones. It is important to set goals that are specific and measurable. Be clear on who is responsible for each action and the deadline by which it is to be complete.
* How to establish the kilowatt rating of a piece of equipment? You may find it in the manual or you may be able to find it on the product specification online. You can also use a meter to get the exact kilowatt rating of any piece of equipment.

Data is your Friend

There are a number of important reasons why measuring and monitoring data is central to your energy management journey:

  • Your ability to report accurately and memorably on your successes in saving energy depends on how well you keep track of your key numbers.
  • To apply for independent certification, you must provide data on energy consumption in your business and be able to demonstrate improvements as a result of actions you take.
  • Similarly, to apply for and win green awards, you must provide evidence of improvements.
    Your data is that evidence.
  • Sharing data with your staff makes the Energy Saving Project meaningful and transparent. When the data reveals the impact of their actions on the consumption and cost figures, your team will be motivated and inspired to continue with the journey.

Leaner and Greener Guide to Energy Management - PDF Download

Leaner and Greener Guide to Energy Management

How to conserve energy, reduce emissions and reduce costs in your tourism business

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