Energy efficiency as a Key Driver of Successful Business Outcomes

From The Energy Alliance Group of Michigan

When the relationship of a strong energy strategy and successful business outcome is clearly understood, energy will never be ignored or overlooked as “just another cost of doing business.”

“..a small group of leading edge companies report they now see energy as a key business value driver, and are deploying new technologies and strategies to turn energy into competitive advantage.” — Harvard Business Review

An awareness of the benefits associated with a business energy strategy is on the rise as noted by Harvard Business Review. Listed below is a small sample of the many benefits:

1. Productivity increase – a small increase in overall staff productivity from improved comfort, reduced noise or better lighting often generates revenue that dwarfs the marginal benefit of efficiency upgrades.

2. Reduced maintenance – accounting benchmarks often take into consideration only the “first costs” of efficiency projects. A reduction in maintenance is ignored even though it yields dramatic dividends via a long term expense reduction and increased production uptime.

3. Building value – According to the U.S. Department of Energy, “The average commercial building wastes 30% of the energy it consumes.” Reducing waste increases Net Operating Income (NOI) which drives a building’s market value.

4. Increased occupancy – “Environmentally friendly office buildings have higher rents and occupancy rates as well as more satisfied tenants.” Professor Avis Devine

5. Competitive advantage – anything a business can do to reduce costs and improve efficiency typically builds a competitive advantage. “The choices a company makes about its energy sourcing and consumption can profoundly influence its cost structure.” Harvard Business Review

6. Improved cash flow – wasted energy represents money that is already being spent. Reducing wasted energy improves cash flow and the savings, along with energy specific financing, can then be used to pay for the upgrades with no additional expense. Since in many cases the energy savings are greater than the entire cost of the project, essentially it is a “free” upgrade.

Read the complete article at http://bit.ly/EAG_SavingEnergy

Energy efficiency as a Key Driver of Successful Business Outcomes posted first on Green Energy Times