Energy Management Efforts Can Yield Recognizable Benefits…If Companies Make Them Stick
Companies today must successfully navigate various challenges if they are to consistently realize strong financial returns and growth. Of these challenges, energy and environmental concerns are gaining in importance among the daily pressures that impact an organization’s performance, and they are driving many companies to improve how they manage their energy consumption and costs.
The volatility of energy costs continues to increase the urgency for companies to improve energy efficiency and management. While oil and natural gas prices have seen significant declines lately (largely due to increased production in North America), these and other energy costs are projected to steadily rise in the coming decades, according to the U.S. Energy Information Administration’s 2016 International Energy Outlook.
Also, governments and global institutions continue to develop public policies and regulations that increasingly require companies to more effectively manage their energy sources to reduce energy consumption and their environmental footprint. In addition to domestic clean energy regulations, international agreements such as COP 21, which establishes reduction targets for greenhouse gas emissions, and ISO 50001, which specifies standards for an organization’s energy performance, provide the goals that companies should achieve from their energy programs. However, they do not provide the process to effectively achieve them -- and sustain and improve them -- over time.