Sustainability: business, life, environment

Many companies have long been committed to reducing their energy consumption and emissions as part of an environmental or risk management policy.  These policies are often communicated at a high level but often are not translated into sustainable action at the ground level.  As an energy consultant, it is encouraging to see many companies in today's economic environment are now seeing real value in the execution of a comprehensive energy management plan.

Leading businesses are focusing on the high impact areas and implementing strategies that engage employees, suppliers, customers, and other key stakeholders.  Companies are reevaluating their sphere of influence to determine new opportunities.  Areas in review include:

•    Energy reduction programs
•    Evaluating energy sources
•    Utilizing offsets

Traditional energy evaluation has focused on a company’s internal operations.  More progressive companies are also looking at energy across the entire value chain.  Energy reduction focused organizations realize:

•    Operational efficiency is directly related to energy reduction.
•    Stable operations reduce cost and establish creditability with business sustainability stakeholders.
•    Supply chain efficiencies are directly tied to energy consumption, specifically in supplier operations and logistics.

An increase in renewable energy options has opened the door for businesses  to evaluate and manage their energy sources.  Companies are taking the next step in energy management decision making by evaluating renewable options.  According to a 2008 report by KPMG, large multinational organizations, who have made public commitments to reduce their footprints, are implementing renewable energy sourcing policies.

The final step in an energy management program is to offset the remaining fossil fuel based energy consumption of the organization.  Offsetting reduces emissions external to a company's own operations.  Many companies are choosing to offset their remaining emissions by funding equivalent CO2 savings elsewhere. 

At Taiga Company, we advise clients that a comprehensive energy management plan is an important part of an overall business sustainability plan.  Internal and external reduction efforts will result in cost savings across the value chain.  In addition, the engagement of key stakeholders will create alignment in the organization and improve the company’s sustainable business credibility.