Taylor Wimpey expects to save £38 million ($56.7 million) by 2020 after implementing a series of energy-efficiency improvements across its business and supply chain, according to the UK home builder.
The company worked with the Carbon Trust to develop the energy and carbon strategy, which identified an estimated £9 million ($13.4 million) in cumulative direct potential cost savings against future cost increases by 2020, and suggested measures to mitigate that risk.
The organizations say that by taking action on supply chain energy efficiency, Taylor Wimpey and its supply chain partners could mitigate against an estimated additional £3 million ($4.5 million) in annual material costs by 2015 and cumulative cost increases of £29 million ($43.3 million) by 2020.
Measures identified include behavior and process changes, as well as investment in equipment and system optimization and upgrades. The project explored a wide range of business areas, including how to improve the energy efficiency of show homes and the behavior of sub-contractors on-site, as well as engaging suppliers on operational efficiency to cut costs.
In addition to identifying direct energy and cost reduction opportunities across its own operations, Taylor Wimpey has also evaluated future risks. The company says this will help it reduce exposure to future energy costs across its operations and supply chain, including the impact of future energy costs on the building materials it buys.
Last summer, Nationwide, the UK financial institution and the world’s largest building society, announced it is using an online tool developed by the Carbon Trust aimed at changing the behavior of its 15,000 employees, in an effort to reduce energy use and cut carbon emissions.
Analysis published earlier this month shows businesses across the UK could save more than £3.7 billion ($5.6 billion) annually by investing in energy-efficient equipment.