Carbon Trust energy efficiency paper
The following is the executive summary; the full document is available to download.
Analysis by Carbon Trust Advisory Services has confirmed that energy efficiency is a good financial opportunity for most companies. Our tracking of efficiency implementation by businesses we work with indicates that costs of at least £1.6bn could be saved by the UK's large businesses. And the investment required to seize
these savings has very attractive payoffs: on average an internal rate of return (IRR) of 48% and payback within three years is on offer.
However, despite these attractive returns, our data suggests that most companies are yet to fully exploit the cost-saving potential of basic energy efficiency measures,
and on average CFOs estimate that the returns on energy efficiency are less than half of the actual returns available.
Our interviews with business leaders responsible for enacting energy efficiency provide useful examples of how leading companies are overcoming common barriers
to progress on energy efficiency. The recurrent themes are: making the business case clear; creating momentum; resolving misaligned incentives; and enhancing the
Other companies can learn from these examples as they seek to exploit the opportunities offered by the transition to a green economy.
This document is not intended to be a 'how-to' guide on energy efficiency—the Carbon Trust has already published several guides that do this job—but rather to function
as a reminder of the value that businesses may be overlooking. We encourage readers to take a fresh look at the opportunities in their businesses.
The full document can be downloaded below.