by Dan Matthews - Monday, 22nd October 2007 -

Think reducing carbon means installing a hamster wheel in your server room? Think again. There’s a sensible, commercial case for going green.

Let’s get one thing straight: reducing your carbon emissions is not a very sexy subject. You want to launch new products, grow your infrastructure and boost profits, not build a compost heap.

But don’t dismiss the tree huggers’ whinging before you’ve heard them out; after all, they argue that you can be kinder to the environment and enhance your business in one fell swoop.

Let’s take a look at the stats. Businesses account for about 40 per cent of Britain’s carbon footprint – or 220m tonnes of CO2 per year, and the government reckons 25 per cent of this is wasteful. On their own, SMEs emit nearly 100m tonnes annually.

These figures will, no doubt, be cast over by numerous unsympathetic eyes. But Tom Delay, chief executive of the Carbon Trust, says you should take note.

His organisation, a private company subsidised with government money, is responsible for reducing British businesses’ carbon footprint. He does this not by appealing to entrepreneurs’ consciences, but to their sense of thrift.

“How much you save depends on the size of your business, industry sector and the steps you take to reduce emissions. But almost all businesses should be able to save money in the long run,” he promises.

Make no mistake; it’s not like winning the lottery. Some business owners who came to the Carbon Trust for advice on how to save energy and money five years ago are only just starting to see a return on their investment.

But Delay says there is a range of benefits that will improve your bottom line, but are hard to quantify. For example, if your business is in a supply chain or is customer-facing, then you should get more custom from an enhanced reputation.

A survey of 2,000 consumers published in August found that just under half would switch to lower carbon products if they could, while (slightly wrong-headedly) one in five would travel further to buy from a green vendor.

Climate change is throwing up a world of opportunities for innovative businesses too. A recent report by Shell Springboard concluded that the UK market for low-carbon technologies will be worth £30bn over the next 10 years.

“Climate change is a business opportunity,” Delay says. “Big corporates are under pressure to be squeaky clean, and that means their partners and suppliers must follow suit. Meanwhile, consumers are becoming more conscious of their impact on the environment.”

Jonathan Adnams, chairman of Adnams Brewery in Southwold, is heading a stream of business owners using green technologies to boost their brand. His slogan, “Beer from the coast”, has a wholesome image that he backs up with a responsible business plan.

“We’re a big entity in a small town, so we have to be a good neighbour. We host a regular beach clean-up and donate one per cent of our profits to local charities, which helps our reputation,” says Adnams.

“In terms of carbon reduction, we have a long-term sustainable plan. We invested in low carbon building materials and an energy recovery plant, which means a greater initial outlay but a better return for shareholders over time.”

You can limit the upfront cost by applying for government subsidies or taking on one of the Carbon Trust’s numerous funding packages. Planning permission for green installations like wind turbines and solar panels should be cheaper in future too.

Government ministers want small installations to qualify as ‘permitted developments’ which require no specific planning permission. It says this will slash the 16-week waiting period and the £1,500 bill for each application.

To apply for an energy survey and reduce your carbon footprint, check out the Carbon Trust’s website at www.carbontrust.co.uk.