Theresa Banta

Top 4 Advantages of Investing in Energy Management Managing a business is a full-time job. It is a never-ending cycle of optimizing operations and managing costs. Salaries, permitting fees, and raw material costs are unavoidable. Yet, there is one expense that many businesses can reduce with less effort: energy costs. Effective energy management has several advantages. Among them are: a) reduced operational cost and b) lowered carbon emissions. Here are the top four benefits that companies can gain by investing in energy management. 1. Reduced operational cost According to the US EPA, energy use can decrease up to 30% without any investment. These initiatives involve changing how people look at energy. Of course, hitting more gains entail minimal investment in energy management. In the case of Kimberly Clark spending USD 350,000 for retrofitting one fabric mill was smart. They enjoyed a utility rebate that brought down energy cost to USD 257,000. Furthermore, the project yielded USD 160,000 each year and paid for itself in less than 2 years. 2. Lowered carbon emissions Carbon emissions is a hot topic today. Companies are scrambling to find out how much emissions they are generating daily. A smart way of mitigating carbon emissions is practicing energy management. Why? An energy management program is a push to make sustainable choices. A company can switch to renewable energy. They can buy energy-efficient equipment or maximize natural day-lighting. Energy management is a great way for businesses to discover solutions. An example is installing an energy efficient telemetry system for data gathering. Companies can track their actual consumption and use the data for all sorts of things. It could be carbon offset estimation of each energy efficiency measure. 3. Optimized operation Cutting down energy costs frees up some capital for improving the business. It can be through equipment upgrading or allocating the money for employee wellness. Boosting a business to the next level is always easy with extra capital at hand. Furthermore, optimized operations often create a win-win scenario for all stakeholders. 4. Enhanced company brand Investing in energy management has significant impact to a company’s brand. Sustainability is no longer a buzzword nor a fad. Companies that make their operations more sustainable reap rewards. Customer loyalty and respect is a benefit that impacts profitability. Given these benefits, it is surprising that energy management is not adopted widely. Several barriers hinder the adaptation of this practice. One is the limited understanding of decision makers about what energy management is. Another is difficulty in choosing what tools and best practices suit the business. A third barrier is having a "going green is expensive" mindset. Several companies like Kimberly Clark are proving that energy management lower costs. Since the beginning, the manufacturing sector has been leading the energy management trend. They understand how an energy management strategy benefits their operations. Now, commercial businesses are starting to feel the pain of soaring energy bills. They are desperate for sound solutions to keep moving. In any industry, top executives tend to focus on the core business. They leave the technical stuff to the facilities manager. Utilities are often left to the back-office staff and taken for granted as soon as bills were paid. But, energy is an emerging headache even for top executives. The energy chunk in total operating costs is increasing and is too hard to ignore. The key to help top executives understand energy management better is to make it relatable. Increased productivity is one benefit that they understand well. An enhanced company image will convince them to consider an energy management strategy. Overall, energy management is more than just cost savings. Making energy management relatable supports significant environmental and economic gains for the business.