Here at Greensaver, we promote energy efficiency solutions for companies across the province of Ontario. In this insight, we will discuss a question we receive regularly from business owners across the province: Why is energy efficiency important for businesses?
Save Businesses Money
Implementing energy efficiency measures can save businesses vast amounts of money. Take ArcelorMittal – the world’s largest steel producer – which saved $257 million in one year from installing energy-efficiency technologies. In Canada, businesses, industries, and institutions would save $3.2 billion per year by investing in energy efficiency.
On average, commercial buildings waste 30% of the energy they consume. Therefore, reducing that waste by investing in energy efficiency can lower operating costs. Inside buildings, companies that replace desktops with Energy Star models can expect to save $831 per computer.
Investing in energy efficiency accrues higher up-front costs. However, in the long run, it makes economic sense to do so.
A Stronger Economy: Better for Business
As well as saving businesses money, investing in energy efficiency is beneficial to the Canadian economy. In 2017, the Canadian government created the Pan-American Framework on Clean Growth and Climate Change to meet its emissions targets. Implementing all energy efficiency measures in the framework would add 118,000 full-time jobs to the Canadian economy, increasing GDP by 1%.
Energy efficiency is also considered by the International Energy Agency as a vital industry to help global economies rebound from the COVID-19 pandemic.
Overall, the stronger the economy, the better for businesses as consumers have more disposable income. Therefore, all types of companies benefit from the improved economic growth that investing in energy efficiency brings.
Corporate Social Responsibility and Energy Efficiency
These days, it is not enough for companies to focus solely on profit; consumers expect businesses to care about the world around them as well.
Energy efficiency and the environment fall squarely within this category. 58% of US consumers consider the company’s environmental credentials before purchasing, according to a survey of 58,000 people by the National Marketing Institute. Therefore, companies that invest in energy efficiency can demonstrate their sustainable credentials and attract more customers.
Investing in energy efficiency as part of Corporate Social Responsibility also helps businesses hold onto employees. Many workers need a reason to work somewhere besides merely earning money. If they feel a company helps make the world a better place, they will be proud to work there and more likely to stay.
Regulation of Companies
To avoid catastrophic climate change levels, we must limit global temperature to no more than 1.5C above pre-industrial levels. Energy efficiency has a vital role to play, and the United Nations has set a goal of doubling the rate of improvement in energy efficiency by 2030.
Consequently, governments worldwide will increasingly mandate businesses to be more energy efficient to help hit the target of keeping warming below 1.5C. The earlier that companies begin to become more energy-efficient, the easier it will be to adapt to the ever-stricter regulation that will inevitably come.
Climate change will cost the world’s largest public companies up to a trillion dollars over the next four years. In truth, no business – big or small – is safe from climate change, and all must adapt. Money saved through investing in energy efficiency measures can be used to pay for the increasing costs of doing business in the age of global warming.
Conclusion: Energy Efficiency is Very Important for Businesses
There are various reasons why energy efficiency is essential for businesses. While it may cost more up-front, the long-term benefits of investing in energy efficiency measures far outweigh the initial outlay. Greensaver is proud to have worked with businesses across Ontario to reduce environmental impacts and energy costs.