CBI: government needs to do more to encourage companies to invest in sustainability

CBI: government needs to do more to encourage companies to invest in sustainability

The Confederation of British Industry (CBI), has claimed that the government needs to do more to encourage businesses to invest in sustainability measures.

The UK business lobby group suggests that companies are penalised for investing in green measures, which increase the value of the property and therefore the amount they must pay in business rates.

James Diggle, the CBI’s head of energy and climate change, explains: “"It's a lose-lose for a business financially, as they are laying out capital investment to install things and then will be charged higher business rates for doing so.”

The Department for Business, Energy and Industrial Strategy (BEIS) countered "We have set a clear ambition to enable businesses to improve energy efficiency by at least 20% by 2030, and we've put schemes in place such as the Industrial Heat Recovery Scheme and Energy Savings Opportunity Scheme to help businesses achieve this."

In a recent BBC report, a building owned by the Dutch arm of Rhenus in the Netherlands was identified as the world’s most sustainable industrial building.

Alphons van Erven, the company’s senior vice-president, asserts that even if environmental factors are not a driving factor for businesses to invest in sustainable practises and infrastructure, then profit and cost savings might be.

In a perfect summary of why it pays for businesses to embrace cost saving initiatives such as the Energy Saving Opportunity Scheme (ESOS) he explains: There can be profit in getting more productivity out of the building…Why wouldn't you invest money in it?"

Elmhurst Energy Consultancy works with many clients within the built environment to identify and implement cost saving practises, including carrying out ESOS Phase 2 reports, which are mandatory for large UK businesses . Our team of experienced consultants would be happy to talk you through the process and advise you how to best proceed. You can contact the team on 01455 883 259 or email: consultancy@elmhurstenergy.co.uk

Article published 15th August 2019

Elmhurst Energy Services Ltd. 16, St Johns Business Park, Lutterworth, Leicestershire, LE17 4HB

© Elmhurst Energy Services Ltd 2022. All rights reserved. Elmhurst Energy Services Limited is registered in England, Company Number: 06087105