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The risk no one’s managing

Every well-run organisation understands the importance of risk management. Identifying, avoiding, and mitigating risk is second nature in finance, operations, and governance. Yet when it comes to energy, that discipline often disappears.

For decades, energy was treated as a relatively stable cost and a guaranteed resource. Prices rarely moved enough to matter, and supply was assumed to be secure. So few organisations built the same level of systems or scrutiny around energy that they did around financial or operational risk.

That complacency is now becoming a liability. Who’s managing the risk connected to the energy that keeps your operations going?

A new landscape of risk

Energy risk today looks nothing like it did a generation ago. The shift from fossil fuels to electrification has created new dependencies — and new vulnerabilities.

Oil and gas once offered security of supply. Now, as demand for low-carbon electricity accelerates, networks are struggling to keep up. Utilities are imposing caps on the amount of power they can guarantee, and access to electricity — once taken for granted — is no longer guaranteed.

It’s easy to say, “Let’s use energy more efficiently.” But that’s impossible without the right structures, frameworks, and insight into how energy is actually used. Without accurate data or reliable reporting, efficiency slips quietly. Equipment drifts from design performance. Processes waste energy unseen. What starts small becomes costly — unnecessary spending, wasted capacity, and growing exposure to energy volatility.

And that brings us back to the real issue: risk. When supply is limited, waste isn’t just inefficient. It’s unsustainable.

Managing energy as a core business risk

Energy can no longer be excluded from the risk framework. Understanding where it comes from, how it’s used, and how it might be managed is fundamental to operational continuity.

And managing energy starts with visibility. Reliable data systems, clear forecasting, and regular reporting are the foundation of control. When organisations treat energy with the same rigour as finance — structured systems, auditable data, and forward-looking planning — they not only reduce waste but build resilience.

Because if something is essential to keeping your business running, it deserves to be managed like every other critical risk.

Why energy risk now sits on the CFO’s desk

Access to capital now depends on clarity.

Banks, investors, insurers, and regulators are no longer waiting for organisations to act voluntarily on sustainability. They’re setting the terms. If a company can’t show credible, verifiable data on its carbon and energy performance, its ability to borrow, insure, or attract investment will start to tighten.

That responsibility now lands with the CFO. Frameworks like the IFRS sustainability standards are reshaping how business value and risk are measured, and energy data sits right at the centre. The quality of that data will decide whether a sustainability report holds weight — and whether a company can prove it's managing risk responsibly.

The missing link in financial governance

Most finance leaders assume their organisations already have reliable data. But in reality, energy and associated carbon information is often scattered, incomplete, or unverifiable. It sits in different systems, owned by different teams, and is rarely audited. That gap leaves sustainability disclosures exposed and puts credibility on the line.

Finance teams are used to basing every decision on solid evidence. Forecasts, budgets, and cash flow all rely on structured, traceable data. Energy performance should be no different.

Without the same discipline as shown to the financial aspects of the business, decarbonisation plans are just educated guesses.

From compliance to control

Financial planning and decarbonisation are connected. Every spending decision affects both cost and carbon. Managing that balance takes the same structure and accountability that finance already applies to reporting and risk.

Energy data needs to be treated like financial data: it must be consistent, auditable, and ready for scrutiny. Achieving that means linking finance, operations, and sustainability around shared standards and integrated systems.

Technology helps close the gap. Real-time monitoring, scenario planning and reporting tools can turn energy performance into something measurable and dependable — a financial metric that informs investment decisions, supports compliance, and protects access to capital.

Clarity as a measure of value

Energy risk is financial risk. Treating it that way builds resilience and trust, both with regulators and with the market. Clear and reliable energy data is no longer a nice-to-have; it is a must-have.

Clarity now defines credibility. And credibility decides access to capital.

What does comfort and air quality actually cost you?

Things as simple as simultaneously heating and cooling adjacent spaces leads to waste - and reduced comfort. Only one in five buildings has a control system regulating heating, cooling, ventilation and hot water generation. And still most of these buildings operate at a Class C energy efficiency level. The ones without control systems are worse again, operating at efficiency grades of E, F or G.

How sustainable practices pay off in more ways than one

Reducing waste leads to a lower base of energy usage - and that only brings benefits. If you’re in the market for a new house, would you go for a townhouse with a D-BER certification, or would you rather invest in a sustainable A-rated property? Many would most likely choose the A-rated property. There’s less maintenance, little investment and lower risk.

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finance

Bridging the gap between those setting the sails and those steering the ship

Transparent, tangible information can be powerful in the hands of those with the responsibility and resources to implement change. The right information, paired with the right knowledge and expertise, becomes valuable insight.

Do offsetting schemes lead to false carbon neutrality?

In an era where the threat of climate change looms over us like a dark cloud, we must take responsibility for our role in carbon emissions. However, the term "carbon-neutral" has become a buzzword that is often misused by companies looking to appear environmentally conscious without actually making significant reductions in their emissions. Some might call it a greenwashing tactic - but we wouldn’t dare be that bold.