In the current economic climate, it would be easy for companies to sideline energy-efficiency measures and instead focus their attention on driving sales. But small and medium-sized businesses in the UK account for around 20% of the UK's overall carbon emissions and are facing increasing pressure from customers, investors and stakeholders to tackle the issue of climate change. And with small firms currently missing out on potential energy savings of £1.3bn per year, cutting energy consumption has never been more important.

There is still a common misconception among small companies that energy-saving measures will not bring about sufficient savings to justify the time and resources invested. Carbon Trust research has found that nearly a quarter believe their business could only save between 1-4% on their energy bills, when in fact the average figure is more than double that, at 10%.

Although some companies may find a lack of expertise a barrier to taking action, there are many resources available through organisations, such as the Carbon Trust, which provide step-by-step help to make the most of the opportunities presented.

Indeed, taking the first step into energy management is an easy one, and many businesses may already be involved without realising it. The key is to make energy management a part of day-to-day business and as structured and robust as possible from the outset.

The benefits include not only reducing the organisation's impact on the environment, but saving resources and directly impacting the bottom line. Since 2005, the Carbon Trust has helped smaller businesses save almost 1m tonnes of carbon and implement more than £100m of direct cost savings, proving that energy efficiency really does deliver not just environmental but also significant financial benefits.

Initial steps
If you're going to take steps to reduce your carbon footprint, you first need to understand it.

‘Small and medium-sized businesses in the UK account for around 20% ofthe UK's overall carbon emissions and face increasing pressure fromcustomers, investors and stakeholders to tackle the issue of climatechange'
The term carbon footprint is commonly used to describe the total amount of carbon dioxide and other greenhouse gas emissions for which an individual or organisation is responsible. The full footprint of an organisation encompasses a wide range of emissions sources from direct and indirect use of fuels and includes such activities as employee travel or emissions from other organisations up and down the supply chain.

When calculating the carbon footprint of an organisation, it is important to try and quantify as full a range of emissions sources as possible to provide a complete picture of its impact. To cut through the confusion and help organisations get to grips with their carbon impact and what it means, businesses can download a footprinting guide available from the Carbon Trust website.

Once you know what's involved, you need to measure your company's carbon footprint. A new online carbon calculator, launched this year on the Carbon Trust website, helps businesses to do just that. A company enters details of its energy usage and other potential emissions sources, including fuel and vehicle usage, electricity bill data and employee travel. This produces a footprint that spans the whole supply chain. The calculator uses common footprinting concepts in line with widely accepted reporting approaches such as the Greenhouse Gas Protocol. Once calculated, the carbon footprint can be used to set benchmarks and measure progress as well as being documented in annual reports.

It's particularly important that any energy-saving measures are tailored to the size and sector of the company. For example, while reducing lighting seems an obvious starting point for all firms, a retailer will need advice on how to maximise its display lighting while a factory might want to know how to make the most of natural light. The Carbon Trust produces a range of free energy-saving guides tailored for the needs of specific sectors, again available on the website.

Armed with this insight, an action plan can be created, detailing what energy-saving measures are going to be put in place and by who. It is incredibly important that all people - from the boardroom to the shop floor - are engaged in this process. Research commissioned by the Carbon Trust last year revealed that two-thirds of UK employees were keen to help their organisation cut its carbon emissions, but less than a fifth felt their company was doing enough. The message is clear that employees want to help, but need guidance so get them involved at every step of the way.

Essentially, staff need to be encouraged to print less, switch off lights and turn down the heating, so guidance on energy saving needs to be communicated in a clear and engaging manner. Posters can be downloaded from the Carbon Trust website, reminder stickers can be placed on light switches and top tips posted on the staff intranet. With staff feeling the pinch at home too, many energy-saving measures implemented in the workplace can also be utilised by employees in their own homes, further increasing the benefits.

Organisations that have energy bills of £50,000 a year or more on one site can apply for a carbon survey. This involves a visit from a specialist consultant who can help measure an organisation's carbon footprint and, crucially, identify ways to reduce it by making recommendations tailored to specific business objectives. On average, 10% of energy used by businesses could be saved through more cost-effective measures, which can lead to substantial cost savings that go straight to the bottom line.

Spreading the word
With staff engagement and an action plan in place, the next move is to engage stakeholders and customers. There is increasing demand from consumers for businesses to take environmental action, but this is coupled with an increasing concern about "greenwashing". Recent Carbon Trust research has revealed that very few consumers understand the climate change commitments made by businesses, while increasing numbers are sceptical about organisation's claims to "go green".

‘Research commissioned by the Carbon Trust last year revealed thattwo-thirds of UK employees were keen to help their organisation cut itscarbon emissions, but less than a fifth felt their company was doingenough'
Businesses that want to be able to credibly demonstrate their environmental achievements to suppliers, customers and stakeholders should consider applying for third-party accreditation. Earlier this year the Carbon Trust launched the world's first carbon certification scheme to enable businesses to prove they are taking effective action on climate change. The Carbon Trust Standard requires an organisation to measure its footprint, manage its emissions and make real carbon reductions year-on-year. It's the only award that unequivocally demonstrates to consumers and procurers that a business is delivering year-on-year carbon reductions.

All organisations, of all sizes and eventually in all countries, can apply for the Carbon Trust Standard. Achieving the standard will enable businesses to be more competitive, build a reputation for taking action on climate change and, importantly in the current market, reduce energy bills. For more information visit www.carbontruststandard.com.

In today's challenging economic climate, businesses must ensure they are looking to make cost savings in the right places. Implementing simple and low-cost energy-efficiency measures will have a significant impact on energy bills, engage staff and improve an organisation's overall reputation. While small businesses may feel they lack the time and expertise, help is out there. Improving energy management and reducing energy bills is quite simply a win-win opportunity.

Hugh Jones is solutions director at the Carbon Trust. For more information on how to measure and reduce your carbon footprint visit www.carbontrust.co.uk or call the Carbon Trust advice line on 0800 085 2005