Why Energy Efficiency

Organizations that embrace energy efficiency not only give themselves a competitive advantage over their competitors, but also better manage their energy costs, which are increasing faster than other expenses, giving them a low-risk, predictable return.

Energy efficiency doesn't seem important to many businesses, so often it doesn't even register as a possibility, much less priority as a way of improving the company's bottom line. Entering new markets or developing new products seems to get more attention than adopting energy efficiency. One UK study reveals that a 20 percent reduction in energy consumption can have the same economic benefit as a 5 percent increase in sales. The Conference Board briefing discussed two reasons for not considering energy efficiency when thinking of ways to improve the businesses' bottom lines: executives are often unaware of the cost benefits of energy efficiency, and they are looking for faster financial returns than are often experienced by investing in increased energy efficiency, which is a long-term investment.

Some reasons executives should pay attention to energy efficiency include generating low-risk, solid returns on investment; improving financial performance because of savings incurred from energy conservation; and striving to achieve societal goals of energy security by reducing dependence on imported gas and oil, improved air quality, and climate change mitigation. Executives must start looking at long term investments and actions, not just short-term, to ensure a stable business and society.

Investing in energy efficiency is an ECOnomically Sound decision.