How far ahead do you think in business terms? 20 years is probably too long for most, 10-15 years may be for the professionals among us.
But what about 3-5 years?
Surely most of us think in those terms!
Well apparently not.
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The first is a graph which predicts the moment that Middle Eastern oil surplus becomes smaller than the demand for oil from the rapidly developing and expanding Asian markets.
What effect do you think this will have on the price of oil?
And since gas prices are pegged to oil prices – by extension to the price of gas?
The second image is a graph of the energy sources used today in the UK for the generation of electricity. You can see that gas occupies almost a half of the total mix.
So what do you think will be the effect on the price of electricity? On inflation?
Let me pull a few quotes for you:
Businesses which prepare and take advantage of the new energy reality will prosper…
To manage increasing energy costs and carbon exposure, businesses must reduce fossil fuel consumption…
Business must address energy-related risks…
Businesses that can adapt their activities to benefit from emerging energy trends and manage the risks will gain an advantage over their competitors.
These did not come from a Green think-tank or an environmental NGO or pressure group – these quotes came from the Lloyds 360 Risk Insight – which brings together views from the worlds leading business, academic and insurance experts.
Most commercial property owners still see commercial EPCs, DECs, Air Conditioning Inspections and almost all of the environmental regulations as an infuriating hurdle that must be jumped over as cheaply and quickly as possible.
Is it not about time they started adapting to a changing world?
On Friday there was more bad news for business owners who thought that carbon reduction and energy efficiency can be ignored.
All member states are to review their public building energy efficiency standards from January 2012.
Since current research shows that as things stand, the EU member states will only achieve a 10% improvement, the European Council will review the 2020 target by 2013, with the view to pressing for even greater efficiency than currently attainable, in order to guarantee the 2020 20% efficiency target.
As Business Footprint has been saying for a long while now, those occupying commercial property or with commercial property investments need to think about this NOW if they wish to reduce their risk.
We provide bespoke recommendations from a range of services, such as Commercial EPCs, energy audits, FITs and grants advice, and air conditioning inspections which, if implemented will not only drastically cut Utility costs now, but will help shore up property investments for the future.
Recently the Carbon Trust released a particularly damning series of reports.
Firstly, it has found that big business has undervalued energy efficiency investments to the tune of £1.6bn. This was after 1000 investments between 2006 and 2009. They cite such reasons as the Landlord-Tenant divide and the low priority given to energy. We think that a lot of this activity goes hand-in-hand with undervaluing the RISKS involved in doing nothing.
The second report showed how the public sector could save £1bn through energy efficiency measures.
The third report revealed UK PLC to be lagging behind Europe, Germany in particular, in the attempts to generate new business opportunities from energy efficiency and sustainability. With the rise of new markets in Asia, Africa and South America – all of whom will have the same energy problems as us (if they are not having those problems already) this seems like the perfect opportunity for the UK to play a role in an industry that will be of global importance.
Paul Sentobe is a L5 LCEA & LCC Assessor, Software Trainer and Energy Modeller. He's also an experienced TM44 Air Conditioning Inspector and ESOS Lead Assessor.