Hybrid working: Businesses reduce energy usage by 20%

Hybrid working has enabled businesses to cut energy usage by a fifth as they replace large city centre office spaces with smaller, more energy-efficient spaces, according to new research released on Monday.

Co-working firm IWG, along with brands like Spaces and Regus, surveyed more than 500 leaders and facility managers at businesses that have adopted hybrid working policies.

The findings revealed that average energy consumption in those companies has fallen by 19% since the introduction of hybrid working policies, benefiting both the environment and their bottom line.

The study, undertaken ahead of World Earth Day today, demonstrates significant environmental and economic benefits for businesses transitioning away from expensive city centre offices towards hybrid working models that require smaller, regional offices and co-working buildings in strategic locations close to where employees live.

Almost half (44%) of those surveyed have reduced their traditional office space by a quarter, leading to reduced energy consumption and operational costs.

A further 19% have achieved even greater reductions, slashing office space by 26-50%. A resounding 84% said hybrid working has been key to reduction of their company’s overall energy usage and carbon footprint.

A further energy reduction predicted as 79% of businesses said they intend to explore additional avenues for reducing energy consumption, such as downsizing their existing office spaces or facilitating access to flexible workspaces.

“The global shift to hybrid working is not only bringing strong productivity and financial advantages to companies and work-life balance improvements to employees, but significant environmental benefits too. This latest research confirms that businesses that have adopted the hybrid model have already reduced their energy usage significantly,” said Mark Dixon, CEO of IWG. 

Smaller, regional flexible workspaces boast higher occupancy rates and consequently lower emissions per employee. An earlier IWG survey showed that only one in five would commute more than 30 minutes daily, while 60% want to work within 15 minutes of home.