Many companies are achieving success towards their energy savings goals in managing energy across the enterprise. Yet many others that are seemingly interested in pursuing energy savings are unable to succeed in their goals. Dramatic differences are observed in actual energy cost and consumption reduction achieved by companies even if they belong to the same industry or markets. What could explain such big performance gaps?
Many companies do not have, nor do they create high-level positions for energy management. Lack of such senior positions, backed by executive support can be a major reason to why some companies cannot capture year-over-year energy savings.
Does anybody you know own the “energy budget” in your organization? While there is usually a tremendous amount of rigor, process. and scrutiny for travel expenses within the company, energy costs are often overlooked and lumped into an “uncontrollable overhead” category. Many people do not realize that energy costs may be their second or third highest variable cost next to labor and materials.
Appointing people to high level energy management positions is a first important step for companies to show commitment to energy management initiatives. Since energy savings opportunities typically exist everywhere with the company, the savings achieved by that role should pay for itself in less than a year, and in most cases in five to six months.
If your company or business unit promotes Sustainability, advocating for an energy management position can be a great way to underline the importance of energy conservation while benefitting from the energy visibility and savings a dedicated focus of these positions can bring.