A new survey proves energy efficient lighting is rapidly climbing the corporate agenda. Why are so many firms implementing LED sustainability tech in 2016?
The Energyst’s Director’s Energy Report 2016 points to growing development on efficiency among corporate leaders in the coming year.
The headline statistics:
Lighting topped the list of energy efficiency measures businesses were investing in. 79% of firms will invest in the technology this year.
Energy efficiency is increasingly dictating the corporate agenda. 93% of firms will implement energy efficiency measures in the next 12 months.
What’s driving corporate efficiency uptake?
For a start, the report shows most respondents believe energy overall has increased in importance as a strategic focus. The results contrast with the Energyst’s previous Financing Energy Efficiency report, in which half of respondents felt energy efficiency was not a board priority.
Uncertain energy tax regimes, cuts to renewables subsidies and politicization of energy issues may all have played a part in this rising focus, as well as the new Energy Savings Opportunity Scheme (ESOS). In addition, heightening awareness of dwindling energy supply capacity may be forcing boards to examine measures to keep their lights on.
Underlining this, two thirds of respondents now have an energy risk plan. Only a small minority consider energy efficiency unfeasible or not a business priority.
Remaining challenges to energy efficiency
Of course, some barriers to efficiency do remain. The report notes that businesses in leased premises and multi-tenant blocks may struggle to make major changes in terms of more efficient heating, lighting and building controls. But, consultants believe companies that have not yet made efficiencies can shave 10% off their energy bills at little or no cost.
Therefore, firms not yet out of the starting gates have a good financial proposition to take to their boards.
Why lighting upgrades are so crucial
Lighting projects look to be the most popular efficiency measures, says the report. They have very short payback times, typically under two years, which make them attractive to finance directors.
This matches Energys’ experience of delivering improvements; ROI is prompt and add on benefits, like higher staff contentment and improved working conditions are easy to obtain.
We would advise any business considering efficient lights; remember today’s LED technology has advanced. Lighting efficiency no longer means compromising on functionality, look or feel. There is now the opportunity to make a tangible improvement to workspaces and build efficiency simultaneously.
Looking ahead, the report says most companies would find subsidies for energy efficiency appealing. It may be that the Treasury considers some form of subsidy in its review of energy taxes. Match funding might also help speed uptake.
But lighting can be put in place with minimal funding streams, making it the ideal place to start a company’s sustainability journey. We will be delighted to advise firms embarking on this path; contact us today.