EP Magazine

An inconvenient reality

By Julian Fris, managing director, Neller Davies

Recently, after a busy day and when I was looking forward to simply relaxing in front of the TV, on came Al Gore’s An Inconvenient Truth…

Clearly this apocalyptic vision of the future, interspersed with mawkish interludes about the ‘humble’ Mr Gore, was designed to raise environmental awareness.  nfortunately these ‘interludes’ resulted in the kettle going on several times, thus increasing my carbon footprint by several tonnes!

Now whether you buy into the total doomsday scenario, or you believe it is solar hyperactivity, flatulent cows, a range of other factors or none of the above, there is clearly an issue right now. We  see images of melting polar ice caps and extreme weather, depleting energy sources and increasing temperatures. Mixed with a heady brew of 24-hour news channels, newspapers trying to sell copy and political expedience, it’s not going to go away.

For those trying to make sense of it all, I think it’s a management issue of controlling waste, conserving energy and minimising cost, while also maximising output and acting responsibly. When you are living in  a world of constant paradox and overcommunication, this can be overlooked.

Let me introduce you to the Department of Energy and Climate Change (DECC), run by Ed Milliband, which oversees the provisions of the 2008 Energy and the Climate Change Acts. The first Act is in place to reflect the availability of new and emerging renewable  technologies. Additionally there are a series of measures around the changing requirements for energy supply. The DECC’s aim is to ensure that there are adequate  protections for the environment and the taxpayer as the energy market changes. On climate change, there will be a legally binding target of at least an 80% cut in greenhouse gas emissions by 2050 with a reduction in CO2 emissions of at least 26% by 2020.

What does that mean to us in the catering and facilities management industries? Take gas – the UK is reasonably self-sufficient in its consumption. By 2020, however, we would need to be importing up to 80% to meet current demand.

A considerable proportion of the gas output is used for electricity generation and manufacturing as well as for heating and cooking – the economic, environmentaland cultural impact is colossal. Buildings consume around 50% of the UK’s energy consumption per year – that includes hotels, restaurants, offices, hospitals and factories. We are highly dependent.

The recent increases in underlying gas and other energy prices coupled with weak consumer demand in the short  termhave shown the challenges to cost control and profitability. On the flip side there is a real opportunity to seriously think about changing our approach to reduce this dependency. It’s not just gas; read oil, electricity, water and any other utility.

In the past we hardly ever considered energy in our operational costs, but this has to change as it has an increasing impact on our budgets. Smart metering will be introduced to accurately measure energy usage and this will enable greater scrutiny by government inspectors. The plan is to introduce controls and monitoring across industrial and domestic situations alike. Some of us are aware of the Part L  (Energy) Building Regulations, which requires a more robust approach to commissioning new or upgraded plant with greater accountability for the environmental impact. There is also the requirement for Energy Performance certification, which calibrates buildings on a scale of A-G – similar to cars and electrical appliances.

These are some of the measures you should be considering: 

• Incorporate energy usage within operational budgets eg. recipe costings, service charges, running costs 
• Undertake a regular Energy Audit to seriously look at consumption, current plant efficiency, staff attitudes 
• Shop around for the best energy deals, incentives and grants (such as the Carbon Trust, Low Carbon Buildings Programme) 
• Assess current methods – is induction cooking more efficient? Are halogen lamps more sustainable? 
• Prepare a cost-benefit analysis of current plant operation, building integrity

What is at stake? Al Gore will eulogise that it’s about long-term sustainability and our very existence on Earth. Others will say it’s a passing fad, but nobody actually knows. Think about  the inspectors knocking on the door and the increasing tax bill, and shift your views to influence change right through your organisation.