Businesses are fighting back against the energy crisis with sustainability at the core of the reaction, according to research from Ayming, the international innovation consultancy.

energy crisis forcing companies to take cost-cutting action

The sudden and dramatic increase in energy prices is causing companies to seek ways to bring costs down. In a survey of 846 businesses across 17 different countries, Ayming’s research found that 77% of firms are changing their business to counter energy costs. Over a quarter (26%) of total respondents described those changes as radical.

This has kickstarted a range of transformation and R&D programmes. The most popular tactic is to look for energy efficiency savings, which 44% of businesses are doing. However, people are also turning to more advanced and drastic strategies, such as looking to alternative energy sources, which 33% of businesses are doing, or looking for alternative materials – such as those not derived from fossil fuels – which 30% of businesses are doing.

Similarly, businesses are rethinking supply chains, both in terms of where they source materials, with 30% sourcing materials more locally, and how they transport them, with 30% looking at their logistics.  

Mark Smith, Partner: Innovation Incentives at Ayming UK, says: “The rise in energy costs is so significant that, in a matter of weeks, some businesses have gone from a reliable profit to losing money. You can’t simply wait and hope for costs to go down. Survival often now depends on minimising the damage to the bottom line, which has jolted companies into action. People are now evaluating every possible option and implementing significant changes both to bring their energy consumption down and to minimise their exposure to expensive fossil fuels.”

Njy Rios, Director: Innovation Incentives at Ayming UK, explains the significance: “Companies weren’t previously motivated to change at this scale due to the large upfront costs. Reducing your energy consumption can be really expensive, but the crisis has flipped that on its head. Now, the cost of doing nothing outweighs the cost of investment. In that way, the energy crisis is a natural catalyst for green action and sustainable innovation.”

Considering the vast upfront investments needed and the fact that profits are being squeezed, Governments have a responsibility to support businesses by providing funding. However, when asked if they believe they have sufficient funding, only half of respondents said they were receiving the funding necessary to navigate the crisis.  

Smith says, “Governments must ensure they have a wide range of support mechanisms to stimulate the energy transition, including R&D tax credits, grants, and subsidies. However, in light of the crisis, there’s also an argument to expand funding to any and all projects that reduce a company’s carbon footprint. So not just technical R&D but straightforward re-organising like localising manufacturing. That will provide immediate benefits both to the economy and environment.” 

Further data and insight can be found in the full report: The International Innovation Barometer 2022/23.

TECH NEWS RELATED

Several US States Open Investigation Into Crypto Lender Genesis: Report

State regulators are turning their attention to troubled crypto firm Genesis Global Capital for potential securities violations.

View more: Several US States Open Investigation Into Crypto Lender Genesis: Report

Dogecoin Gets Double-Digit Black Friday Pump

While the rest of the crypto market is sleepy from turkey, the original meme coin is on a rocket-ride today.

View more: Dogecoin Gets Double-Digit Black Friday Pump

Crush your growing list of books to read with Headway Premium

It’s kind of expected that professionals will keep their education and skills on the cutting edge throughout their career. But that’s sometimes easier said than done. Can’t find time to read up on the latest trends in your industry? Then try the Headway app on for size. And since ...

View more: Crush your growing list of books to read with Headway Premium

Freedom’s Loyalty Plan offers 30GB for $30

The closest regular plan to the Loyalty Plan is a $45/30GB plan

View more: Freedom’s Loyalty Plan offers 30GB for $30

Pitch Deck Teardown: Juro’s $23M Series B deck

Back in January, Natasha covered Juro’s Series B round, which added $23 million to its coffers. Juro aims to put an end to contract negotiation madness, moving the workflows out of Microsoft Word and a handful of other sub-par tools to an all-in-one, web-based platform for contract negotiation-to-signature workflow. It ...

View more: Pitch Deck Teardown: Juro’s $23M Series B deck

Telus adds $75/100GB Black Friday plan

The plan previousl featured $85/50GB, but now includes 100GB of data and a $10/mo bill credit for 24 months

View more: Telus adds $75/100GB Black Friday plan

The BMW 3.0 CSL is a 553 hp, 1-of-50 Tribute to BMW M's Racing History

The 50th year of BMW M ends with a manual transmission and an inline-6.

View more: The BMW 3.0 CSL is a 553 hp, 1-of-50 Tribute to BMW M's Racing History

New ransomware attacks in Ukraine linked to Russian Sandworm hackers

New ransomware attacks targeting organizations in Ukraine first detected this Monday have been linked to the notorious Russian military threat group Sandworm. Slovak software company ESET who first spotted this wave of attacks, says the ransomware they named RansomBoggs has been found on the networks of multiple Ukrainian organizations. ...

View more: New ransomware attacks in Ukraine linked to Russian Sandworm hackers

Meet 5 startups working to harness the Earth’s heat to save the planet

Canadian carriers lock their doors, does it change the experience?

Vice Society ransomware claims attack on Cincinnati State college

Black Friday: Get up to 50% off iPad stands, Apple Watch bands and more

Musk aims to relaunch Blue on December 2 with manual verification

Has the FTX mess iced venture interest in crypto?

Get the Beats Solo 3 Wireless headset 60 percent off for Black Friday

Rogers offering $75/mo 100GB plan for Black Friday

Binance launches proof-of-reserves system for BTC holdings

Black Friday: Tell us how you really feel

Clean, compact MacBook Air rig makes most of tiny desk [Setups]

Street Fighter punches into Fall Guys

OTHER TECH NEWS

Top Car News Car News