Increasing Risks for Business from Energy Use

BUSINESS face increasing financial, legislative and reputational risks associated with energy use, so warns a new white paper commissioned by utility giant npower from the London School of Economics (LSE).

Organisations need to put in place effective plans now to reduce their exposure to future risks, this is the key finding of the white paper, “Energy Risk Management for UK Business.”

Samuel Fankhauser, author of the paper and principal research fellow at the Grantham Institute on Climate Change and the Environment at the LSE stated:

“The risks faced by UK business related to energy will continue to grow. Energy price volatility and increases, reputation and price risks from carbon regulation, and increasing regulatory and technological complexity all combine to ensure energy will continue to pose a significant risk for UK businesses moving forward.”

The white paper follows statistics in the latest npower Business Energy Index, which revealed that businesses rank energy as posing greater risk to them than health and safety, credit and security.

To address this concern and to stress the importance of immediate action, npower commissioned the London School of Economics to produce the white paper to provide a guide to current energy risks and forecast how they will grow in the future.

David Cockshott of npower explained:

“Our aim in commissioning the white paper was to reveal the risks energy poses to businesses, show how they are likely to change in the future and ultimately, how organisations can manage these risks.”

Businesses and organisations need to consider energy issues at board level and implement effective management strategies to become energy efficient, lessening the risk to their business and budgets from future legislation, rising energy costs and the impact of environmental responsibility.

Tuesday 16th November 2010

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