As the European energy crisis starts to bite, we’ll be discussing how ethical and sustainable procurement can benefit businesses during this uncertain period, and what a move towards sustainability may mean for businesses and the energy industry going forwards.
There are a number of things driving the UK energy crisis including lower supply, low gas storage stocks, high European carbon prices and an increased demand for gas caused by the economy reopening after the pandemic. A lack of shipping capacity and reduction in truck drivers to export this commodity has also exacerbated the situation, complicated further by gas and nuclear maintenance outages.
The energy crisis is yet another challenge to navigate following the difficulties presented by the Coronavirus pandemic. From financial stresses resulting from soaring energy prices through to frustrating supply chain and stock issues – the UK energy crisis has had serious effects on businesses of all sizes.
The energy crisis is also closely linked with the environmental crisis. The current consumption model we rely on uses almost entirely non-renewable energy sources such as gas, coal, oil and uranium. As global trade continues to expand and as technologies develop, global energy consumption will carry on rising. Meeting this demand will require significant additional supply.
This could be bad news for our planet which is already facing a range of problems caused by climate change. Although strategies have been implemented to address this, such as the SDGs put forwards by The United Nations, and the goals of Net Zero outlined by COP26, the energy crisis threatens to undo any good work made and prevent these objectives from being achieved.
The methods we are using to source energy, and the rate at which we are consuming it, is simply not sustainable and something must change.
The rapid acceleration of the energy crisis and the extreme consequences it prompted has revealed glaring supply vulnerabilities.
It’s obvious that something must change in order to create a more efficient, robust and greener energy supply. For this to happen, investment should be made into new technologies and infrastructure that limits energy waste, reduces Co2 emissions but are still efficient and cost-effective.
A move towards sustainability is key. Some energy sources are totally renewable and unlike fossil fuels, do not emit greenhouse gases which harm the environment. Examples of sustainable and alternative energy solutions include hydropower, solar energy, biomass energy and geothermal energy.
In addition to implementing alternative energy sources, it’s also important that we collectively change our attitude towards how we use energy. Businesses and individuals should make the switch to sustainable solutions when they can and avoid waste as much as possible.
One method of making your business more energy efficient is through sustainable procurement. Prioritising sustainability in the supply chain means thinking about where your energy is coming from, how it is being sourced and in turn, making more sustainable and informed choices.
In addition to directly making a difference, you’re also impacting the market – driving up demand for more sustainable and innovative solutions. As more organisations embrace sustainable procurement and seek affiliation with ethical and environmentally aware businesses, this will put significant pressure on the energy industry to change.
As demand for green energy increases, the supply will inevitably increase – driving a green transition that could lead us to a more sustainable future.
Ethical and Sustainable Procurement Support from Gateway
Build a sustainable, successful future for your business and support the drive for green energy with support from Gateway Procurement.
From implementing the ISO20400 standard and going Net Zero, through to improving your wider environmental, social and economic responsibility credentials – we will support you in achieving your goals through ethical and sustainable procurement.
Using our expertise and access to speciality tools (like the supply chain emissions calculator from Axiom), we will work alongside you and your business to integrate sustainable practices across your operations and throughout the supply chain to advance your organisations sustainability.
Unlocking best value through collaboration™