Manufacturers hazy over climate change drive

London – There is widespread confusion among UK manufacturers over climate change initiatives and the likely impact of Government targets toward achieving a ‘low carbon economy’, a survey of UK business has revealed.

The fourth npower Business Energy Index (nBEI) canvassed 200 senior managers and energy buyers from a cross section of industry on attitudes to energy use, costs and the low carbon economy, with over two thirds of respondents working in the broader manufacturing sector.

Despite the high profile of climate change in political and public debate, and the emphasis on reducing carbon emissions, the report found a wide range of interpretations of the term 'low carbon economy'. This confusion “is potentially impacting on the impetus being placed on environmental matters,” said the report authors.

When asked if reducing carbon emissions was a business priority, 60% of major energy users believed reducing CO2 was a business priority. However, of the 40% that said it wasn’t, 64% believed that it never would be, illustrating a polarised view amongst major energy users. Amongst smaller businesses, the views were even more strident with 80% of respondents stating it was not a business priority.

The report. however, confirmed that ongoing cost pressures have ensured that energy management has never been a higher priority for manufacturing businesses. This sentiment, it said, is leading to an increasing number of major energy users monitoring energy than ever previously reported in the nBEI.

Some 85% said they are measuring energy efficiency; 45% of manufacturing firms said they now employ full time staff for energy management, and 60% use building energy management systems. Furthermore, 61% confirmed that compliance with climate change agreements has resulted in permanent energy savings.

Business is responding to cost signals by taking important steps in energy management, according to Gordon Parsons, managing director of npower business. "But there are varying understandings of the business potential, and risk, of a likely increased focus on carbon reductions with some companies leading the way, while others are ambivalent to the issue.

"The energy industry, government and NGOs have a role to play in helping demonstrate that reducing energy cost and tackling CO2 are mutually beneficial as opposed to mutually exclusive," concluded Parsons.