Excluded from the board room
August 1st 2007

Despite energy issues dominating the current political and media landscape, leaders of medium sized businesses in the UK are not taking responsibility for energy management within their organisation, according to research by B2B consultancy energyTEAM.

Instead, this most vital of functions is delegated to less senior personnel – such as facilities managers, health and safety officers or operations managers – in two thirds of companies with over 50 employees.

energyTEAM's study reveals that only a fifth of managing directors (MDs) and CEOs are responsible for this activity. In 13% of organisations, energy management falls under the remit of the financial director or financial controller.This creates a risk that genuine energy saving measures must deliver return on investment within an unreasonably short length of time or fall by the wayside, rather than being seen a long term strategy.

Only in 3% of the companies surveyed was energy management highlighted as an issue handled by the entire board.Worryingly, a further 3% responded that no one in particular had responsibility for this function, while only 7% had a dedicated energy manager handling this activity.

The figures are even more pronounced when considering organisations by their size. In businesses with over 500 employees – arguably those with the greatest energy usage – only 3% of MDs or CEOs are responsible for energy management, rising to a meagre 14% in companies with 250 to 500 staff.

Brian Rickerby, joint managing director of energyTEAM, believes business leaders must play a greater role in the management of energy within their organisations.