Something for Nothing! Reducing corporate energy bills with Dr Martin Blake

Energy is currently a cheap commodity and even with smart energy procurement most organisations could be wasting up to 40% of their spend. With the guaranteed dramatic increases in energy costs, business leaders are increasingly more accountable to their Stakeholders to implement sound business strategies to transform their energy and cost base through integrated carbon reduction strategies, more efficient use of energy and also meet the growing requirements for reporting and meeting government targets.
As leaders, you constantly want more evidence that investments in corporate sustainability will create tangible returns. However, all too often investment opportunities get missed when soft business cases are presented without the correct data, forecasting and financial modelling to establish the true investment potential.
Take the UK's Royal Mail as an example. One of the biggest property owners, employers and logistics & distribution companies in the world, in 2006 they embarked on an energy transformation journey that saved them £35m a year, reducing their energy spend by 45%. Dr Martin Blake, then Head of Sustainability for the Royal Mail Group, took a radical net ˆ zero cost ˆ approach to finding external investors and developed an innovative gain-sharing investment approach.

Investment Grade Marginal Abatement Cost (MAC) curves
Using MAC curves in a corporate setting is a comparatively new technique and requires access to energy and investment data, combined with technical informational and risk & costs modelling.
When skilfully developed, a MAC curve is an extremely informative investment tool that allows you to accurately evaluate between projects and to balance ROI with carbon reduction, regulatory and financial targets.

Category:

Education

Tags:

• Dr
• Martin
• Blake