July 23, 2008 - Energy efficiency is now the number one cost-cutting priority for U.K. businesses, and no wonder - a new study estimates that British firms waste a staggering 2.5 billion pounds ($5 billion) annually thanks to poor energy practices.

In a survey conducted by the Carbon Trust, most business leaders polled say that the credit crunch is a direct contributor to moving energy efficiency up their agendas. Twenty percent say that reducing carbon emissions has become more important in the last six months than 9% who say it has become less important.

“Our research shows that energy efficiency measures, not job cuts or salary freezes, are the cost-cutting steps businesses are considering first during this economically challenging time," says Hugh Jones, Solutions Director at the Carbon Trust. "It’s an encouraging sign that wise companies are realizing that cutting carbon and being green is the easiest way to make a business lean."

The Carbon Trust believes that the 2.5 billion pounds of wasted energy (equivalent to 13% of the total energy bill of the U.K.'s private sector) could easily be reduced over the next 12 months by taking simple measures in the workplace, such as switching off lights and computers at night and fixing air leaks.

"With companies increasingly feeling the pinch, this is a welcome reminder that saving carbon also saves money, says Phil Woolas, Minister of State, Environment."