Economy Seven Article - Clinton Devon Estates

Yes, there is a case, but perhaps not always for the reasons people think.
 
Good business anticipates and responds to the interests of its stakeholders. Those interests now include growing concern for issues around global warming, resource use and the environment generally.
 
This affects all businesses. As the Harvard Business Review recently pointed out: “investors already are discounting share prices of companies poorly positioned to compete in a warming world”.
 
We are aware that we need to ensure Clinton Devon Estates adapts to the changing priorities of its stakeholders. If we don’t we will find ourselves poorly positioned.
 
We know that in 10-15 years the Government is likely to be taxing/regulating energy and waste more stringently than it is now. Also that energy prices are likely to be higher.
 
Similarly, our customers increasingly require goods and services with a green tinge, whether that be responsible food production or more efficient heating systems on tenanted properties.
 
To meet that need and be ahead of the curve, we have placed resource efficiency, resilience and environmental issues at the core of our overall strategy. Responsible stewardship and providing for future generations are now two of our key themes.
 
In practice, that means we work hard to ensure our finite cash resources are put to the most effective use in terms of delivering a successful and sustainable future for our business. That can involve some tough decisions.
 
For instance, in some of our tenanted properties we have replaced oil-based heating systems with wood or biomass burning alternatives. It’s a popular change given the current price of heating oil.
 
Unfortunately, at present, the economic case only stacks up when a routine boiler replacement is needed. Such economic calculations can change over time as the Government introduces new incentive schemes.
 
We have begun, carefully, to move into new areas where we hope to develop profitable and sustainable businesses by capitalising on the changing energy environment. For example, an under-used barn converted into a woodchip store is now acting as a hub to distribute biomass to a number of customers including Devon County Council and Paignton Zoo.
 
We have substantial biomass assets on the estate so it makes sense to turn them into a business if the opportunity is there. Similarly, we have invested in a technology company, New Generation Biogas, seeking to serve the anaerobic digestion market.
 
Such adaptation is the key to successful business and that now means responding to the green objectives of all our stakeholders (Government and consumer). The challenge is the current, remarkable speed of change and making sure our business is adapting quickly enough.