No one disputes the engine behind global economic growth is the energy provided to power businesses, but to the capitalists that energy represents large profits. From generation to distribution, procurement, and infrastructure, it is treated as a necessity in life rivaling water. Without energy, we would have no lights, AC, Internet, transportation, and many more things impacting our daily life. What is not commonly discussed nor popular, is how efficiently are you consuming your energy?
Business has commonly treated energy as a fixed cost for decades. You do not have the ability or means to track, impact, and change your consumption, so basically have to live with it as part of your cost structure. What is slowly gaining momentum and starting to get commercialized is that Energy Efficiency provides the cheapest, most sustainable, and quickest solution to meet your energy demand, while driving improvements in bottom line dollars as well. Various international energy associations and committees have stated energy efficiency can play the largest role mitigating climate change through reducing carbon emissions. This impact is stated to be larger than nuclear, renewable energy, solar, and all other means combined.
Simply put, technology capabilities have evolved to the place where energy should no longer be treated as just another fixed costs. CFO’s now have the ability to manage energy like any other business unit, through efficiency and financial KPI metrics. The current challenge posing hurdles in front of major business though, is that it is not an easy sell politically nor popular with mainstream media. Since energy waste is not tracked by the business nor correlated to dollars, it takes a back seat to large energy infrastructure projects that create marketing buzz, jobs, and advance political agendas, but the facts should suggest otherwise. Although not the popular decision, well run organizations have control over their energy efficiency maximizing returns on their consumption and managing energy waste, so this begs the question: Is your company managing its energy efficiency?
– Xavier Navarro
Director, Business Development