Can energy management boost industries bottom line?

Energy management looked minor compared to investing in new product development or a new marketing campaign. But now, with the price of energy going up, energy management is becoming more interesting for commercial industries and manufactures.

According to new research by Aberdeen Group, 105 manufacturing executives were surveyed about their energy and carbon management strategy and asked to identify best practices for reduced energy usage and GHG emission, as well as reduce operating cost. Approximately, 66% of the respondents noted that the strongest force behind the manufactures strategy is about operating cost. Second –highest motivator -about 50% of the respondents- focus on compliance with energy and carbon regulations.

The Ceres Roadmap for Sustainability reported that there are 20 keys expectations that were related to governance, stakeholder engagement, disclosure and performance. One of those keys is achieving a 50% improvement in energy efficiency and a 25% lower carbon foot print by 2020. It was the best way to reduce carbon foot print resource in the 21st century. They added that information technology can be combined with strategic action and organizational structure to take a high leverage energy and carbon management. Obviously, analyzing the information technologies for managing the financial effects of the decisions, on the benchmark of company’s performance is necessary.

‘’Aberdeen’s report cited a number of key business capabilities that characterize the leading companies in energy and carbon management:

• Establishment of a “formal energy and carbon program” with executive sponsorship and cross-functional support and execution
• Development of an “enterprise-wide framework” providing “a clear understanding of the organization’s energy management programs”
• Establishment of “maintenance schedules  and alerts” based on the real-time condition and energy efficiency of  particular assets
• Adjustment of production schedules based on energy costs’’.

Perhaps  energy management  will begin to utilize similar  rigorous standards as those applied  to financial reporting. Organizations should start to look at carbon and energy as a second currency.

Categorised in: Energy, EPA