Page 54
Last year in Paris, the world saw an unprecedented level of international agreement on the need to limit the effects of climate change. To the large enterprises responsible for consuming most of the world’s energy, COP21 sent a clear message – change is coming, whether they are prepared for it or not.As the world reconvenes for COP22, it is time to talk about what businesses are doing in response.Going forward, the ensuing policies, regulations, and legislative efforts to reduce greenhouse gas emissions will undoubtedly force businesses to react. But the rising pressure to reduce their environmental impact is not the only trend making it more important for businesses to think differently about energy. Investors are putting more value on environmental and sustainability metrics, while increasingly prevalent millennials have shown a clear preference for businesses that can demonstrate a commitment to sustainability when deciding what products to buy or where they’d like to work. These forces are converging to make energy management more valuable to a business’ long-term performance. Just a few short years ago, the only consequence for businesses that ignored their energy consumption was immediate and financial; they spent too much on their monthly energy bills. Today, energy has evolved into a significant factor in a business’ brand reputation, ability to mitigate risk, and resilience in the face of a natural disaster or other unexpected disruption to energy supply. Even the immediate financial value has evolved. Emerging technologies like the Internet of Things enable unprecedented visibility into operational efficiency, while alternative energy sources and an evolving energy market continue to change the economics. Those that are ill-equipped to capitalize on these developments risk falling behind their competitors in the long term.Most corporate executives and board members are aware of these trends and the impact they can have on their business. A 2015 survey of more than 3,000 investors and enterprise managers worldwide conducted by MIT Sloan Management Review and The Boston Consulting Group found that 90 per cent of respondents agreed that sustainability strategy is “essential to remaining competitive.” However, only 60 per cent said their organization has a strategy in place.What we have is a gap between the recognition of the need to act and the ability to do so effectively at the enterprise level. This reality was the driving force behind the Unified Approach to Energy Transformation, a framework for instituting successful energy strategies developed by EnerNOC, PwC, and Winston Eco-Strategies earlier this year. After analyzing energy practices at some of the world’s leading enterprises, we determined that successful strategies incorporate these four strategic principles:Integrate energy management into the fabric of their company to manage energy in a more coordinated and strategic mannerElevate their business performance using energy intelligence software and data analyticsCapitalize on advances in the energy markets and new technologies available to them“ ENERGY HAS EVOLVED INTO A SIGNIFICANT FACTOR IN A BUSINESS’ BRAND REPUTATION ” Pictured: Tim HealyTIM HEALY, CHAIRMAN AND CEO, ENERNOCTACKLING THE GAP BETWEEN AWARENESS AND ACTION054 SUSTAINABLE ENERGY
