Green energy procurement – how can your business benefit?
Green procurement has become an integral part of future-proofing a business. When choosing an energy contract, elements such as the length, fee and rates of the contract must be considered. But as we move towards net zero businesses will be held to higher standards. So choosing sustainability will become a social, financial and environmental necessity.
Sustainable procurement supports renewable energy in various ways. Certain tariffs will allow you to buy energy from a specific renewable source. Others match some or all your electricity with renewable energy. So even if the energy used is not directly from a renewable source, it increases the amount of renewable power pumped onto the grid.
We take a look at a few of the ways green procurement could benefit your business.
Possibly the most appealing benefit of green procurement is cost efficiency. By choosing sustainable energy sources, you are not only helping the environment, but also your business. By cutting out unnecessary fossil fuel power and energy inefficiency, businesses can become more proficient with money.
Green energy is much easier to track once business trends and weather forecasts are accounted for. This means businesses can create a much more reliable energy budget that may have otherwise been consumed in a variable energy market. These cost savings can then be redistributed into other areas of the company.
Renewable electricity continues to make up a consistently large percentage of our national grid. And it has become clear that this is the preferred source globally. As businesses start to show more interest in green procurement and renewable energy, the industry will start to realise that renewable energy is in fact the way forward. And as demand increases, green energy will start to reduce in price.
Boost your rep
It goes without saying that a sound sustainable strategy will improve your corporate image. Being completely transparent with stakeholders, employees and clients creates a healthy and trustworthy business environment. Promoting green achievements can also entice potential eco-conscious customers.
Being socially and environmentally responsible will put your business on the map as being a future thinking organisation. A green reputation brings with it broader customer attraction and loyalty from clients who value sustainability.
Stay ahead of the curve
Becoming sustainable is no longer an option for businesses, but a necessity. Understanding your own energy consumption and making eco-friendly changes is a crucial step in staying compliant with carbon legislation.
Sustainable procurement takes into consideration what is best for your business, as well as the environmental benefits. This is done by looking at mandatory reporting requirements, and in-depth research into suppliers to ensure fair labour practices.
One form of green procurement is Power Purchasing Agreements (PPAs). PPAs give customers the opportunity to buy direct from a renewable source. There are different types of PPAs. This includes on-site which allows customers to purchase energy straight from a physical source, meaning you can avoid non-commodity charges. Whereas off-site agreements mean purchasing from a specific source, but receiving the energy through the grid.
How can we help?
A survey by Ofgem revealed that 53% of people found choosing an energy contract difficult and confusing. This is not helped by the added pressure to ‘get green’. While this is a step in the right direction environmentally, the focus on becoming sustainable can also be overwhelming. At National Utility Hub, we take care of your energy admin, match you with the right contract and create an efficient strategy tailored to you.
Get in touch today to find out how we can help.