Following the green road to profit, one step at a time

UNDER THE RADAR:David Burrows, Stepgreen

THERE'S NO doubt in David Burrows's mind about the business plan for his company, Stepgreen, over the next three to five years - he plans to help his clients reduce their carbon output by a total of at least one million tons.

If Stepgreen achieves that aim, it should boost the company's turnover to more than €1 million over the same period, even in the face of the economic slowdown, says Burrows (31), a three-times Olympic sailor and formerly an auditor with PricewaterhouseCoopers.

"We approach this very much from a business perspective: so whether our clients reduce their carbon footprint through behaviour change or through using new technology doesn't really matter. What matters is that they become more energy-efficient. That's how they'll improve their carbon output - and save money."

It's that link between a more environmentally friendly approach to business and a healthier-looking bottom line that Burrows believes will continue to convert even the sceptics.

"I'd say we're pushing a half-open door", he smiles.

"It's true that because we deal with the non-traded sector, companies whose carbon output is not controlled by legislation. Becoming more energy-efficient is discretionary, and any discretionary spend is certainly coming under pressure.

"On the other hand, more and more companies want to reduce their carbon footprint because they believe it will benefit them in terms of marketing, branding or PR, or because they feel it's part of their corporate social responsibility and their shareholders will expect it. That's especially true of market leaders.

"And while our recommendations to clients do sometimes involve capital spend, it's always proposed on the basis of a thorough cost-benefit analysis, a measured payback period and figures to support both the impact on the bottom line and the reduction in their carbon footprint.

"In a business environment, that's what makes a difference."

As a competitive sailor and a lover of the outdoor life, David Burrows has always been environmentally aware.

But it was during his time as an auditor that he realised that companies would ultimately have no choice but to factor the cost of their carbon emissions into their financial management.

Stepgreen was set up in 2007 to advise businesses and individuals on how to reduce their carbon footprints and how to offset the carbon emissions that can't be prevented. It scored a significant coup this year when it was chosen by the employers' organisation, Ibec, to offset the carbon generated by their first-ever carbon footprint conference - itself a sign of the business times.

"There are protocols for offsetting this type of event", Burrows explains.

"Firstly, we agree the emissions for which the organisers will take responsibility. Will they or will they not include travel, for example? This is a question companies have to face regularly: will they take responsibility for the carbon generated by their employees while they're sitting in traffic jams on their way to work?

"We make sure the event is held in the most environmentally friendly way possible, and that includes choice of location. We then calculate the carbon footprint the event will generate. And we offer the organisers a carbon balance portfolio, which allows them to offset the impact through a number of renewable energy projects run by Irish companies, such as biomass or forestry."

The fact is, maintains Burrows, that while Irish businesses are reasonably receptive to the economics of energy efficiency, as a country we're falling further than ever behind our Kyoto obligations - at the same time as facing new, even more ambitious EU targets.

"At the moment there isn't a carbon tax. But given those outside pressures on Ireland, in the future there could well be government incentives for companies working to reduce their carbon footprints.

At the very least, I believe that between now and 2020, many more companies will be brought within emissions legislation."