Why Boards Should Consider Energy Data Analytics
In order to improve corporate governance, boards need to consider implementing energy data analytics.
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In order to improve corporate governance, boards need to consider implementing energy data analytics.
As companies look for ways to improve energy management to save money and boost sustainability, they can turn to standards such as ISO 50001 and Superior Energy Performance (SEP) that provide frameworks for increasing energy efficiency.
Investors are increasingly focusing on sustainability, and they are putting pressure on companies to change accordingly.
Most businesses readily concede they are spending too much on energy. Unfortunately, just as many miss out on a myriad of energy analytics advantages and fail to develop an energy strategy that gives them a competitive advantage.
Energy is no longer just a fixed cost that your business incurs. By performing energy analytics, invaluable insights can be derived to inform operations, risk management, compliance, manufacturing, among other departments. As a result, organizations should look to incorporate analytics and energy services for businesses that connect usage and cost to the larger picture of business energy management as a competitive advantage.
When a company looks to grow, it often has to make investments such as hiring more staff or moving into a bigger office, with the hope that the cost of doing so is ultimately less than the benefits these investments provide. Yet many companies overlook an energy investment opportunity that would also improve the bottom line of their business.
While it might seem like businesses have little choice in how they receive electricity, emerging technologies (like energy storage solutions) are allowing organizations to tap into local energy sources to gain greater control over their energy usage and costs.
Companies are no longer just evaluated based on financial metrics like revenue and balance sheet strength. Instead, investors are increasingly looking at sustainability factors, which ultimately play a role in the company’s performance, considering how events like resource scarcity would hurt certain businesses or how certain sustainability initiatives like better energy management could improve profitability. Sustainable investing is now here to stay for good.
Four energy-related bills have been approved by committees within Connecticut’s General Assembly, and if passed by the State Senate and House and ultimately become law, they will bring further collaboration between CT energy companies and legislators to create a more competitive energy strategy for the state.
By now, everyone from shop floor worker to CEO intuitively understands that saving energy delivers dollars to the bottom line. But cost avoidance only begins to showcase the benefits of modern energy efficiency technologies. Non-economic benefits of energy efficiency often accompany financial savings.