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Energy Managers: Efficiency Not Taken Seriously by Top Brass

Some 31 percent of British energy managers say energy efficiency is not being taken seriously by their bosses, according to a report by Siemens.

But the feeling is not replicated at boardroom level – 83 percent of directors believe that energy management matters are being paid enough attention, according to the Siemens Green League report, Edie Energy reports.

Despite energy being a significant factor of most businesses’ bottom line, 27 percent of board directors didn’t know how much the company’s energy bill was and 18 percent said that they did not know how much they would invest in energy over the next three years, the web site reports.

Some 30 percent of board directors blame a lack of perceived return on investment for their company’s lackluster investment in energy-efficiency measures, according to Edie Energy.

Earlier this year, Siemens acquired Pace Global Energy, a company that combines strategic enterprise consulting with energy and carbon management. Pace Global, a 36-year-old company, manages more than $5 billion in energy spend for 200 clients around the world.

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3 thoughts on “Energy Managers: Efficiency Not Taken Seriously by Top Brass

  1. As an Energy manager I share the report’s frustrations with the challenge of getting energy efficiency projects funded. However energy spend for most non-industrial companies is an extremely small element of the cost of doing business. It’s only 3% of the yearly employee costs, so that makes it very hard to substantiate financially. What is needed is a new philosophy where business does it because it’s the right thing to do. Idealistic I know.

  2. As soon as you star making the case that it is the “right thing to do” then credibility starts to wane. If it falls within the finanical framework it will sell it’s self. If it doe not then the spin off efficiency gains must be incorporated in the BCA. makes financial sense then

  3. Paul,
    I work for a company called Locus Technologies and we sell software to help manage not just energy consumption data but also other sustainability and ehs metrics.

    I agree with what you are saying in reference to total spend and the small % but keep in mind that % can still be a large number. I am curious if the ROI could be justified to show potential cost reductions beyond what it costs to purchasea tool, what is the concern? Even if it is a small number, long term savings potential should be pretty clear.

    I am sure you are all familiar with mantra you can’t manage what you can’t measure. While it is believed to be X, how do you know? industry averages dont necessarily mean you are average.

    Energy usage can also be valuable in measuring the success of other operationally effiecent aspects. If you have made six sigma type changes and you can see a direct reduction in the energy consumption while increasing or maintaining the quality and production it can provide some useful insights. Or if you have upgraded the building to be more energy efficient, are looking for LEED certification, or trying to adhere to some of the ISO standard, this is pretty much a requirement.

    Also, in company CSR reports that is information many customers, consumers, investors, vendors, suppliers, and potential investors want to see. In fact at some of the folks like Walmart or others they strongly encourage/mandate that information is reported on for them. As the scopes get deeper, this and other information might be needed to help win deals.

    These are just a few of the reasons I have heard thrown around at various companies. Perhaps they could help you or spark an idea. Good luck with your efforts.

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