It’s a common misconception that decarbonisation (‘going green’) is costly. Many organisations shy away from reducing their carbon footprint as they believe it will eat into their budget and affect their bottom line. It’s understandable why we are so protective over capital, given recent economic instability following the pandemic.
Yet, becoming an eco-friendly, low-carbon business can actually drive cost savings. We’ll show you how in the following myth-busters and explain our approach to decarbonisation based on increased profitability and mitigated risk.
Myth: Renewable energy costs more than fossil fuels from the grid
Truth: Renewable energy is cheaper than fossil fuels
With energy rates due to double in price by the end of 2022, buying fossil-fuelled energy from the grid is no longer a cost-effective option. In fact, almost two-thirds of renewable energy schemes built globally last year are expected to undercut coal costs.
You can also offset the cost of installing your own renewable energy systems onsite by cost savings they create. Green technology enables organisations to balance energy needs and use power at the most economic times. This includes producing heat overnight ready for the next day’s consumption, and storage of surplus electricity generation for use during peak grid electricity pricing. Premises are less reliant on the grid, can produce their own fuel, and choose the most cost and energy-efficient times to use grid-sourced energy.
What’s more, additional energy produced onsite can be sold back to the grid to generate an income. Coupled with cost savings, this is how an organisation can improve profitability by moving to renewable energy.
Myth: Going green relies on high in-house investment, of which costs are difficult to recover
Truth: Going green opens up private finance opportunities which can be used to progress projects that result in long term cost savings
Have you heard of ESG investing? It stands for Environment, Social, and Governance, and the private finance sector is heavily investing in companies that are climate-friendly, ethical, and diverse in their workforce and board composition. Why? Because there is a growing argument that if a company acts responsibly, they are more likely to be successful and profitable for their investors. A recent study has shown that there is a positive correlation between the effectiveness of an organisation’s sustainability practices and its stock price.
This opens up private finance opportunities, not just for corporates, but for SMEs, too. You can find out more about Green Finance in our guide.
Myth: The public sector can’t access the same funding as private organisations
Truth: The public sector can also benefit from private finance opportunities which can be used to progress projects that result in long term cost savings
The UK government has enshrined a new target in law to slash emissions by 78% by 2035. This is part of its sixth Carbon Budget which aims to bring the UK more than three-quarters of the way to net-zero by 2050. They have declared that the delivery of net-zero is affordable as a country with capital available at a national level. Including over £1 billion government funding to cut emissions from industry, schools, and hospitals.
The result is Green Finance schemes such as the Public Sector Decarbonisation Scheme in partnership with Salix Finance (a non-departmental public body). Put briefly, this is a collaboration between the Government and finance industry, to encourage organisations to ‘go green’ via funding.
Myth: Going green is an additional cost added to the budget
Truth: You can actually cut costs elsewhere by going green
In a digital age where promotional material seems to be everywhere, it can be difficult to get your voice heard amongst competitors, especially in saturated markets.
It’s not uncommon for businesses to overspend on marketing to get through to their target market amidst the competition. So, competitive advantage and differentiation are key to standing out from the crowd and making your organisation the first choice in the market.
The public is favouring greener businesses: a study by Wunderman Thompson Intelligence showed that 87% of consumers would prefer to buy from a brand that demonstrates a commitment to sustainability. Hence, going green can become your competitive advantage.
With a clear competitive advantage, you don’t need to overspend on marketing. You can be targeted and more strategic without the need to be heard time and time again if your message is strong.
How our approach can help you to go green within budget
At Hillside, we have a specific strategy based on insight from over 100 years of combined experience in the environmental industry. The way we approach projects enables organisations to mitigate risk through steps that are focused on energy and cost-efficiency.
Our team aligns nature, technology, and finance, empowering you to understand your impact on the planet, find solutions to improve it, and meet economic objectives.
We place a heavy emphasis on carbon reduction to help organisations reach net-zero through holistic environmental planning.
The funding and support are out there. Hillside is a specialist in Green Finance applications, with a network of sustainability funds that we can help you to access. If funding isn’t a requirement, our team can help you to build in-house economic models.
Get in touch if you have any questions about reducing your carbon footprint. We’re personally invested in protecting the planet so will always go the extra mile to ensure we can support you.
You can also sign up for our monthly email update, 'A breath of fresh air', for more environmental know-how. We don't spam, we send emails packed with useful resources and news pieces.