WITH rocketing fuel prices and the rising cost of living, everyone is feeling the pinch. This is not only causing concern among the general public but also among businesses across the UK, who are having to rein in their expenditure to meet a changing economic climate.

You might think that against this backdrop a company's focus on reducing its carbon footprint would be going down. But this is not the case and most global companies now view their engagement with the environment as the primary issue likely to impact on their corporate reputation during this year.

Yet many companies still think of energy as a fixed overhead, when saving it is actually one of the easiest ways to reduce costs and improve your reputation.

Simply by switching machines off after use or turning the heating down in warm weather, you can make real savings on your energy bill. Cutting it by just 20 per cent could add the same amount to your profits as a five per cent increase in sales.

It is now commonly accepted that every individual and business on this planet has a responsibility to make a difference locally.

It was with this in mind that, nine years ago, a group of mainly public sector bodies banded together to set up an awards scheme for all Scottish organisations – whatever their size – to encourage environmental best practice.

Now in their ninth year, the Vision in Business for the Environment of Scotland (VIBES) Awards are managed by a partnership of organisations including Sepa, the Scottish Government and Federation of Small Businesses in Scotland.

The awards are open to any business and organisation across Scotland that brings benefits to its bottom line through improvements to environmental performance.

The competition is free to enter and entries are assessed on the application form and site visits. Although the closing date of Friday, July 18 is fast approaching, it's not too late to enter this year's competition.

One Edinburgh company that has benefited from entering VIBES is Apex Hotels, which runs the Apex International Hotel in the Grassmarket.

By introducing a number of environmental initiatives, including championing the introduction of energy-efficient technology, Apex Hotels has managed to make savings of hundreds of thousands of pounds each year in energy use.

At a time when the business community in Edinburgh is beginning to feel the continuing effects of the credit crunch, it is worth bearing in mind that making environmental improvements can boost your company's credentials as well as making your bottom line accounts look a lot more attractive.

• Gillian Bruce is chair of the Vibes of Scotland Awards 2008