In February 2023, think-tank Bruegel reported that a staggering €768 billion had been earmarked across European countries to shield consumers from rising energy costs. With more focus than ever on energy conservation, Simon Emeny, Director – Specialist Markets, Inspection Services at LRQA, outlines how auditing and inspection services may lessen the effects of such pervasive fuel shortages on a variety of manufacturers and processors in this article.
Quantifying the crisis
The energy crisis has become one of the most important business focuses in Europe, with governments putting in measures to shield consumers from the direct impact of rising prices. In Germany alone, it is estimated that almost €270 billion has been allocated by the government to curb the detrimental impact.
Energy supplies are being severely impacted by the Russia-Ukraine war. This is quantified by the 20.1% drop that was reported in the EU consumption of natural gas in the period of August-November 2022*.
As consumption drops and supply is closely monitored, it is ever critical that gas waste is avoided. The International Energy Alliance recently estimated that over 50 billion cubic meters of gas is wasted through leaks, flaring, and venting across the EU. With energy prices having a detrimental impact on operating costs, better management of oil and gas, and forward-thinking energy strategies are crucial to ensure the security of the fuel supply.
The European Commission has recommended using energy monitoring and control tools, along with energy audits, to highlight areas where businesses can improve efficiency. In the UK, energy regulator Ofgem is proposing initiatives to promote efficiency measures. Implementing a successful energy strategy in such pressured environments is a challenge, but one that is worth taking on to protect against potential fuel shortages.
Making changes
Greater attention is needed on how organisations can reduce energy consumption. With wasted gas and electricity costing more than ever, the focus must include all occupied commercial and industrial spaces. As part of this, some equipment, and even whole facilities, may no longer be fit for purpose.
The benefits of this improved energy focus will not just be for the here and now, with long-term environmental policies set to gain further traction. By taking immediate steps to improve energy efficiency and reduce wastage, businesses will be better able to survive the energy crisis and be well positioned to contribute to Net Zero and other environmental goals.
The question remains; what can businesses do to reduce energy? One of the first and most significant steps to take is the identification of waste points. It is often not clear where energy is being wasted, however, inspection services can help find them and make bespoke recommendations to help reduce the wastage found. Another key step business should take is to understand how to transition towards green energy. For this, auditing is a vital resource of information and assistance.
Auditing opportunities
One way to identify areas that need improving is by implementing a third-party auditing strategy. Audits are often crucial in understanding risks – both internal and external – that many companies face. Once completed, they equip companies with information needed to make good economic and environmental decisions.
A more immediate benefit of auditing is that they make it more feasible for organisations to manage their energy output. This is done, in part, by inspecting equipment and ensuring it is both fit for purpose and compliant with all relevant laws and regulations.
These audits can extend to suppliers and their equipment, too, giving peace of mind that processes will go without unfortunate surprises due to malfunctions. Supplier audits are essential in making sure that supply chains operate at the required standards. With a combination of inspections and audits, programmes can be designed to make sure that standards are met and maintained along an entire supply chain.
Organisation should also be making the switch to green energy a priority. ESG (Environmental, Social and Governance) strategies will be instrumental in creating a smooth transition, with audits playing yet another important part to keep businesses compliant with complex global and local regulations.
Looking forward
The energy crisis is becoming a pivotal moment for the current decade and the ramifications will be felt for years to come. Organisations must take immediate action to show they are able to conserve energy, whenever required. Third-party assurance, certification and inspection service specialists like LRQA can be a great ally. Offering support, information, strategies and training recommendations, third-party audits can help safeguard against risk in a tumultuous time and make the journey to green energy a smooth one.
For more information on inspection services, visit LRQA.com.
