Climate action, the last piece in Ireland’s economic puzzle

As the cost-of-living crisis continues to challenge Irish businesses, Climeaction explain how sustainable practices such as streamlining supply chains and reducing waste can lead to savings of 15% to 20%

Paul Murphy, climate actions solutions lead, Climeaction, with Joe Aherne, CEO of Leading Edge Group.

Rising costs across the Irish and global economies are chipping away at consumer and business confidence. Consumer sentiment dropped in the last few months of 2022 and varying studies have shown that consumers are spending less in 2023. Rising prices are expected to continue into 2023, which will impact business performance and increase the costs for investment in capital programs. 

Although Ireland’s resilience in the face of global turmoil, as a small and open economy, places us in a better position to deal with the downturn, the impact on capital programs will be felt in some companies here.

Climate action in business can help mitigate the economic challenges caused by sustained inflation and the ongoing energy and cost of living crisis. By implementing improved business practices and investing in energy efficiency and renewable energy, businesses can reduce their operating costs, increase efficiency and create new opportunities for growth. Climate action also helps to address the issues of energy security, supply diversification and affordability, which are critical for the continued growth and competitiveness of the Irish economy.

Furthermore, government and private sector investing in critical infrastructure such as housing and supporting services like water and energy can also support economic and population growth, as well as attract more investment and talent. Additionally, a proactive approach to climate action aligns with the EU regulations on Corporate Sustainability Reporting Directive (CSRD) and sets a higher standard for Environmental, Social and Governance (ESG) practices.

If a company is capital constrained, there are options to enable continued progression towards their targets. Investing in operational excellence for climate action can be a cost-effective and efficient way for businesses to reduce their carbon footprint and mitigate the effects of climate change. Operational excellence refers to the ongoing improvement of business processes and operations to increase efficiency, reduce costs, and improve performance.

In contrast to capital investments, such as the installation of new equipment or technology, operational excellence focuses on optimising existing systems and processes. This can include implementing energy-efficient practices, streamlining supply chains, and reducing waste. By focusing on these small but significant changes, businesses can achieve significant savings on energy costs and reduce their environmental impact without the need for large capital investments. Based on our experience at Climeaction and analysis of over 300 business audits, we can say that typically savings of 15% to 20% can be saved through these type of projects alone. The investment here is time to develop capacity, skills and processes to enable the unlocking of these savings.

One of the key benefits of operational excellence is that it allows businesses to identify and address inefficiencies that may not be immediately apparent. This can include reducing energy consumption, improving resource utilization, and reducing waste. By identifying and addressing these areas, businesses can realize significant cost savings while also reducing their climate impact.

Another advantage of operational excellence is that it can be implemented relatively quickly and with minimal disruption to business operations. This makes it an ideal solution for businesses that want to take action on climate change but may not have the resources or time for large-scale capital investments. Another option for capital constrained business is Energy Performance Contracting (EPC) or a new approach called Carbon Performance Contracting (CPC) developed by our team at Climeaction.

Carbon Performance Contracting (CPC) is a cost-effective and efficient way for businesses to reduce their carbon emissions and costs, while also improving their environmental performance. CPC is a performance-based approach in which a carbon service company (CSCO) designs, installs, and maintains carbon-efficient equipment and operational systems, and guarantees a certain level of carbon reduction.

One of the key benefits of CPC is that it allows businesses to upgrade their carbon-emitting systems and processes without the need for large capital investments. The CSCO seeks finances, designs, installs, implements, operates and maintains the carbon-efficient equipment and processes and the savings generated by these measures are used to pay off the investment over time. This makes it an accessible solution for businesses of all sizes, regardless of their financial resources.

Another advantage of CPC is that it allows businesses to reduce their carbon emissions and costs while also improving their environmental performance. By upgrading to carbon-efficient equipment and systems, businesses can reduce their carbon footprint and contribute to the fight against climate change.

CPC also provides a guaranteed level of carbon reduction, which helps businesses to budget for carbon mitigation and plan for the future. The CSCO is responsible for ensuring that the carbon-efficient equipment and systems continue to operate as intended, and will be held accountable for any shortfall in the guaranteed reduction. This guarantees a certain level of return on investment and helps businesses to plan for the future with more certainty.

Finally, CPC also allows time and knowledge poor large businesses to access the latest carbon-efficient technology and expertise. CSCOs are experts in carbon reduction and have the knowledge and resources to design and implement the most effective carbon-saving solutions for any given situation.

This process is self-funding with carbon saving projects resulting in cost savings, increased outputs, increased sales, improved operational performance - all of which continues to fund the continuous improvement efforts. The business has access to a team of experts on different areas of their business climate challenges and the results are consistent and verifiable.

This product is called Climate Action as a Service (CAaaS) and is already in action across 5 of Ireland’s largest industrial manufacturing facilities, delivering thousands of tonnes of carbon savings and millions in cost savings to our clients.

To learn more about how we can help your large manufacturing company achieve their goals contact us on [e-mail]

Climeaction is an award winning Climate Action Solutions company based in Cobh, Co. Cork, with over 300 customers across the SME and Large Industry sector. Their team has a combined experience of over 100 years in Climate Action. 2023 will see their team double and expand their operations across the Atlantic.

Learn more at www.climeaction.com