Five Strategic Measures for Future-Proofing Your Business Energy Needs

The Imperative of Energy Efficiency in Business

Energy efficiency isn't just an environmental concern; it's a business imperative. As companies strive for sustainability, they also uncover opportunities for cost savings and improved operational performance. According to the International Energy Agency (IEA), global energy intensity – a measure of the energy efficiency of a nation's economy – improved by 1.2% in 2018. However, this rate is less than the 1.7% improvement seen in 2017 and well below the average 3% improvement consistent with the IEA's Efficient World Strategy. This indicates a significant opportunity for businesses to capitalize on energy efficiency measures.

Planning for an Uncertain Energy Future

Scenario planning is a time-tested strategic tool that helps businesses anticipate and prepare for potential future risks. It involves identifying possible future scenarios and developing strategies to navigate them. For instance, Shell's use of scenario planning in the early 1970s allowed it to adapt swiftly to the oil crisis, propelling it from the eighth to the second-largest oil company within two years.

The GBN workshops outlined four potential energy futures:

The Same Road

• Continuation of current energy and environmental trends, including climate change concerns.

The Long Road

• A significant shift in economic, geopolitical, and energy dynamics.

The Broken Road

• A disruption of current systems by a severe, unforeseen event.

The Fast Road

• Early and decisive action on energy efficiency and climate risk leads to positive outcomes.

Proactive Steps for Energy Strategy and Management

The business leaders involved in the GBN workshops examined the impact of these scenarios on their companies' energy strategies. They concluded that businesses should adopt the following five robust steps to ensure energy success:

1. Master Energy Efficiency Fundamentals

• Cultivate a culture of energy consciousness through leadership and expert guidance.
• Set clear goals, track energy performance, and establish accountability across the organization.

2. Adopt a Long-Term and Wide-Ranging Perspective

• Consider energy costs, usage, and supply in major strategic decisions, such as technology choices and facility locations.
• Look at the entire Energy Value Chain, from supplier inputs to customer outputs.

3. Seek Business Transformation Opportunities

• View energy management as a catalyst for growth and innovation.
• Aggressively pursue and promote new products and services that leverage emerging energy technologies.

4. Develop Contingency Strategies

• Prepare for various scenarios, including fluctuations in energy prices and supply, extreme weather events, and regulatory changes.
• Actively manage risk exposure and have ready response plans.

5. Personal Action

• Encourage corporate leaders and employees to adopt sustainable practices both at work and in their personal lives.

About EcoGreenHotel

EcoGreenHotel LLC is a company committed to advancing sustainability in the hospitality industry. They offer a wealth of resources, including information, tools, checklists, and insights into current trends through their website EcoGreenHotel.com. In 2009, they launched an online marketplace for eco-friendly products and services at EcoGreenHotelStore.com. Beyond online resources, EcoGreenHotel provides bespoke consulting services for energy efficiency and sustainability certifications, such as LEED, Green Seal, and Energy Star. They also offer marketing services to promote properties that have achieved certified levels of sustainability. For more information, contact EcoGreenHotel at info@EcoGreenHotel.com or call 888.229.0213.

The strategies and insights discussed in this article are based on the work of Erik Smith and Peter Schwartz in their article 'Energy Strategy for the Road Ahead' published by the Global Business Network. The full text can be found here.