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CERTIFICATE PROGRAM
Developed by:
With generous support from:
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ENERGY CHANGE LEADERSHIP &PERFORMANCE ASSURANCE
COURSE INSTRUCTOR: Patrick Crittenden, Ph.D.Director, Sustainable Business Pty Ltd.
COURSE 1
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COURSE INTRODUCTION
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COURSE 3: GENERAL RESOURCES
Textbooks:The Energy Efficiency Handbook, Eighth Edition . Doty, Turner.
Websites:
US DOE EERE Website – eGuide for ISO 50001:•
http://www1.eere.energy.gov/energymanagement/Australian Government’s Energy Efficiency Exchange website –Business Case and Beyond project
• ht
tp://eex.gov.au/energy-management/the-business-case-and-beyond/
PDFs:
BetterBricks 2011, The High Performance Portfolio Framework:Energy Management Strategies for a Competitive Office Market ,BetterBricks, Northwest Energy Efficiency Alliance.Efficiency Valuation Organization International PerformanceMeasurement and Verification Protocol (IPMVP) (EVO)
http://www1.eere.energy.gov/energymanagement/http://www1.eere.energy.gov/energymanagement/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://www1.eere.energy.gov/energymanagement/
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PDFs (continued):• Paciorek, S., Egan, D. & Jabaji, R. 2010, Vornado’s Energy
Information Portal , The Steven L. Newman Real Estate InstituteWhite Paper Series, Fall 2010
• Crittenden, P. & Lewis, H. 2012, 'Influencing financial decisionson energy efficiency: six key strategies to build managementsupport', paper presented to the American Council for an Energy-Efficient Economy Summer Study on Energy Efficiency in Buildings ,Pacific Grove, California, USA.
COURSE 3: GENERAL RESOURCES
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MANAGING TO PERFORMANCE TARGETS:PART 1
WEEK 1
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WEEK 1: LEARNING OBJECTIVES
Understand the concept of change leadership, and recognize the role it canplay in setting and achieving energy performance targets.
Be able to identify the key stakeholders in a development – including thosewho may not have a direct property interest therein, but whose interestsmust be considered in any decision-making process.
Recognize the importance of coordinating the sometimes conflictinginterests of a diverse group of stakeholders in order to achieve mutually-beneficial outcomes.
Appreciate the major components of energy and asset management systems,including the critical ISO 50001 framework.
Know the different participants of an effective energy management team,what roles they must play, and how they can work together to achieveresults.
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WEEK 1: READINGS
The Energy Management Handbook , Chapter 1: Introduction
The Energy Management Handbook , Chapter 14: Energy SystemsMaintenance
Win the Energy Challenge with ISO 50001 – International Organization forStandardization (ISO).
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1. ENERGY CHANGE LEADERSHIP
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CHANGE MANAGEMENT VS.CHANGE LEADERSHIP
Change Management • Minimize distractions and impacts of change; focus on individuals and groups
that may be resistant to changing the way things are being done.Change Leadership
• Leverage the driving forces, visions and processes available to fuel large-scale
transformationSource: John Kotter .
Cherry blossoms in Spring. Photo: CJBVII, via Wikimedia Com’s.
http://www.forbes.com/sites/johnkotter/2011/07/12/change-management-vs-change-leadership-whats-the-difference/http://www.forbes.com/sites/johnkotter/2011/07/12/change-management-vs-change-leadership-whats-the-difference/http://www.forbes.com/sites/johnkotter/2011/07/12/change-management-vs-change-leadership-whats-the-difference/
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CHANGE LEADERSHIP& ENERGY MANAGEMENT
1. Many stakeholders can and will influence decisions.2. Cost-effective technical improvements may be overlooked because they arenot well understood: This can lead to a low take-up rate.
3. Energy Management Teams can modify behavior within an organization.Need to provide the required motivation and training
4. Energy Management Systems (EnMS) can offer a systematic approach to
improvement that is not possible through traditional management.5. Buildings are complex systems; this complexity includes the array of
different stakeholders.
Midtown Manhattan at twilight. Photo: Massimo Catarinella, via Wikimedia Commons.
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6. Optimal energy performance requires attention to the social system aswell as the technical system.
7. Change leadership requires an understanding of stakeholder perceptionsand needs, as well as implementation of effective strategies to:
a. Align incentives
b. Develop awarenessc. Create an environment in which positive action is enabled.
8. Energy change leaders drive improvement through political skills andeffective communication techniques .
Patrick Crittenden, University of Technology, Sydney. Image: a 19 th century map of San Francisco, Calif .
CHANGE LEADERSHIP& ENERGY MANAGEMENT
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2. STAKEHOLDERS
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WHAT IS A STAKEHOLDER?
A stakeholder can be defined as:
“Any group or individual who can affect or isaffected by the achievement of an organization’s
objectives.”R. Edward FreemanStrategic Management: A Stakeholder Approach1984
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POTENTIAL STAKEHOLDERS
Source: WBCSD, 2009, p.12.
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STAKEHOLDERS: ANALYSIS AND STRATEGY
Five key questions:
1. Who are the people and groups that can influence energy useand investment decisions?
2. What is the current level of stakeholder awareness of thebusiness benefits of energy efficiency?
3. To what extent do stakeholders currently support (or hinder)energy efficiency improvement?
4. What more could key stakeholders be doing to better supportenergy efficiency improvement?
5. What can you do to develop their awareness and support?
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SeniorManagement
Accounting andFinance Operations
Tenants
(1) WHO ARE THE PEOPLE AND GROUPS THAT CAN INFLUENCEENERGY USE AND INVESTMENT DECISIONS WITHIN YOURORGANIZATION?
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
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(2) WHAT IS THE CURRENT LEVEL OF STAKEHOLDER AWARENESS OFTHE BUSINESS BENEFITS OF ENERGY EFFICIENCY?
Try to consider each stakeholder’s level of awareness.
You might already know the answer but it can be useful to check. How?
Ask your stakeholders (or their representatives) directlyConduct a written or web-based survey of the same peopleAsk a third party who understands the interests and concerns of yourstakeholders (or their representatives)
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
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(3) TO WHAT EXTENT DO STAKEHOLDERS CURRENTLY SUPPORT(OR HINDER) ENERGY EFFICIENCY IMPROVEMENT?
Which tasks is each of the identified stakeholders is already doing?Understand the methods for funding/financing efficiency improvements.
Review recent energy management projects and consider who wasinvolved in the decision-making process.Look at business case proposals that were not successful. Find out why theprojects did not go ahead.
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
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(4) WHAT COULD KEY STAKEHOLDERS BE DOING TO BETTERSUPPORT ENERGY EFFICIENCY IMPROVEMENT?
In order to influence different stakeholders, it is important to understandhow they can help to achieve successful energy management.
For example, you might want to have:
Senior managers sign off on an energy management policy or plan.Tenants become involved in a building environment and energy team.Financial staff become more involved in the development of businesscase proposals to ensure that they are more successful.Your operations team review energy data on a more regular basis and
to act when they identify anomalies.
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
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Provide regular briefings on the business case for energy efficiency and theprogress that has been made
Work with a corporate sponsor
Establish or re-establish an energy management team
Develop an energy policy with support from senior management
Resources• Review material from course 1 and 2 to develop your case
•
See DOE eguide for USI 50001Step 1.2https://ecenter.ee.doe.gov/EM/SPM/Pages/Step1_2.aspx
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
DEVELOPING AWARENESS & SUPPORT: SENIOR MANAGEMENT
https://ecenter.ee.doe.gov/EM/SPM/Pages/Step1_2.aspxhttps://ecenter.ee.doe.gov/EM/SPM/Pages/Step1_2.aspx
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Brief them on the business case for energy efficiency
Include information on innovative financing options
Highlight benefits of tapping into special funds that might otherwise beunavailable
Ask for meaningful input
Additional Resources
Article: How can accountants help with energy efficiency?(http://www.greenbuildingsalive.com/discussions/2012/10/11/how-can-accountants-help-with-energy-efficiency/)See training material developed for the Leadership and Change for EnergyEfficiency project (http://www.business.uts.edu.au/energyefficiency/)
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
DEVELOPING AWARENESS & SUPPORT: ACCOUNTING & FINANCE
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Highlight how improved energy management can help address currentbuilding issues – e.g. climate-control complaints from tenants
Involve them in an energy audit if it is being undertaken by externalconsultants
Provide training to build skills and reduce uncertainty
Incorporate energy efficiency concepts into positive descriptions andperformance management reviews
Suggested ResourceCase study: The GPT Group Trainingwww.environment.nsw.gov.au/.../eneftraining/120107EETGPTcs.pdf
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
DEVELOPING AWARENESS & SUPPORT:OPERATIONS MANAGEMENT TEAMS
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Brief tenants on the business case for energy efficiency
Provide information about what tenants can do
Provide information on energy use and costs where data is available
Resources• Case study: Vornado’s Energy Information Portal:
http://www.baruch.cuny.edu/realestate/pdf/Unprecedented-Visibility-
Vornado-White-Paper.pdf
Source: Patrick Crittenden, University of Technology, Sydney.
STAKEHOLDERS: ANALYSIS AND STRATEGY
DEVELOPING AWARENESS & SUPPORT: TENANTS
http://www.baruch.cuny.edu/realestate/pdf/Unprecedented-Visibility-Vornado-White-Paper.pdfhttp://www.baruch.cuny.edu/realestate/pdf/Unprecedented-Visibility-Vornado-White-Paper.pdfhttp://www.baruch.cuny.edu/realestate/pdf/Unprecedented-Visibility-Vornado-White-Paper.pdf
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OBTAINING FUNDING: PROJECT LEVEL
Six Key Strategies to improve success in obtaining funding for energy efficiency
See:
htt p://eex.gov.au/energy-management/the-business-case-and-beyond/
For a description of the
strategies supported by casestudies and tools
http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/http://eex.gov.au/energy-management/the-business-case-and-beyond/
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Piggyback on current business trends
Solve another identified problem through an energy efficiency project
Use the need to comply with regulatory requirements to catalyse change
(1) LINK YOUR PROJECT TOBUSINESS PRIORITIES
Review:
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-
business-case-six-strategies/link-your-project-to-current-business-priorities/
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/link-your-project-to-current-business-priorities/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/link-your-project-to-current-business-priorities/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/link-your-project-to-current-business-priorities/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/link-your-project-to-current-business-priorities/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/link-your-project-to-current-business-priorities/
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You can’t work in silos. Get the right peoplewith different expertise involved. It is the
only way to build a credible business case for a project.
(2) INVOLVE THE RIGHT PEOPLE
Review:
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/involve-the-right-people//
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/involve-the-right-people//http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/involve-the-right-people//http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/involve-the-right-people//http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/involve-the-right-people//http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/involve-the-right-people//
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Use existing communication forums such asmanagement meetings
Use the right ‘business speak’Use clear and focused messages and questions
(3) COMMUNICATE WITH DECISION-MAKERSEARLY IN THE PROCESS
Review:
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-and-communicate-with-decision-makers/
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-and-communicate-with-decision-makers/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-and-communicate-with-decision-makers/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-and-communicate-with-decision-makers/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-and-communicate-with-decision-makers/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-and-communicate-with-decision-makers/
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“Thinking about a project from a risk perspectivehelps you reduce the chance of unforeseen thingshappening…it demonstrates that you havethoroughly thought the project through.”
Sustainability Manager, The GPT Group
(4) IDENTIFY AND MANAGE PROJECT RISKS
Review:
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-project-risks-and-develop-strategies-to-
manage-them/
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-project-risks-and-develop-strategies-to-manage-them/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-project-risks-and-develop-strategies-to-manage-them/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-project-risks-and-develop-strategies-to-manage-them/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-project-risks-and-develop-strategies-to-manage-them/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-project-risks-and-develop-strategies-to-manage-them/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/identify-project-risks-and-develop-strategies-to-manage-them/
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Product qualityGreenhouse gasreductionsOH&SCorporatereputation
Tenant comfort Cost reduction
Salvage valueMaintenancebenefitsDeferred capitalexpenditure
(5) CONSIDER ALL BUSINESS COSTS &BENEFITS
Review:http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/describe-and-quantify-all-business-costs-and-benefits/
http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/describe-and-quantify-all-business-costs-and-benefits/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/describe-and-quantify-all-business-costs-and-benefits/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/describe-and-quantify-all-business-costs-and-benefits/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/describe-and-quantify-all-business-costs-and-benefits/http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/describe-and-quantify-all-business-costs-and-benefits/
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Research & Development tax breaks
Government funding
Energy performance contractingInternal energy funds
(6) IDENTIFY FUNDING OPTIONS
Review:
http://eex.gov.au/case-study/the-gpt-group-energy-performance-contracting-for-cogeneration-and-energy-efficiency-initiatives-at-530-collins-st-melbourne/#The_GPT_Group_Energy_performance_contracting_for_cogeneration_and_energy_efficiency_initiatives
_at_530_Collins_St_Melbourne-7
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3. ENERGY ASSET MANAGEMENT SYSTEMS
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ENERGY ASSET MANAGEMENT SYSTEMS
What are they?Energy asset management systems (EnMS) are programs thatprovide frameworks for integrating energy and asset managementinto an organization’s regular management practices.
Strengths
Applying recognized standards can provide transparency andcredibility to an organization’s approach.
Limitations
Management systems can lead to a focus on documentation and“box -checking” rather than a wholehearted approach to
optimizing outcomesThe elements of standardized systems are necessarily general, andmay not be readily applicable to specific organizations
Source: Patrick Crittenden, University of Technology, Sydney.
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Suggested approach
Be aware of the components of relevant management systemsConsider the pros and cons for your building/portfolio/organizationAdopt the approach that is best and combine it with a change
leadership strategy to maintain a focus on driving stakeholderengagement with a focus on beneficial business outcomes
Source: Patrick Crittenden, University of Technology, Sydney.
ENERGY ASSET MANAGEMENT SYSTEMS
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EPA’s ENERGY STAR GUIDELINES FOR E.M.
The Energy Star Guidelines for Energy Management comprise the mostwidely adopted Energy Management model in the United States.
Developed by the U.S. Environmental Protection Agency in 1991
Purpose: to provide a framework for organizations to achieve energy
savings goalsBased on the concept of continuous improvement
Contains a step-by-step road map: Seven major steps
Based on best practices from the nation's leaders in energy management
Source: U.S. Environmental Protection Agency.
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BETTERBRICKS HIGH PERFORMANCEPORTFOLIO FRAMEWORK
Initiative of the Northwest Energy Efficiency AllianceSupported by utilities throughout the Pacific Northwest Objective: to provide an Energy Management framework within which organizationscan assess and improve the performance of their entire portfoliosUtilizes a five-step process for monitoring, controlling, and conserving energy within
an organization’s portfolioRegional in scope of implementation – Important because of its success
For more information, see:
http://www.betterbricks.com/commercial-real-estate/tools/high-performance-portfolio-framework
Source: BetterBricks
http://www.betterbricks.com/commercial-real-estate/tools/high-performance-portfolio-frameworkhttp://www.betterbricks.com/commercial-real-estate/tools/high-performance-portfolio-frameworkhttp://www.betterbricks.com/commercial-real-estate/tools/high-performance-portfolio-frameworkhttp://www.betterbricks.com/commercial-real-estate/tools/high-performance-portfolio-frameworkhttp://www.betterbricks.com/commercial-real-estate/tools/high-performance-portfolio-framework
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ISO 50001
A framework for Energy Management Systems (EnMS)Created by the International Organization for Standardization (ISO)More widely implemented in Europe than in the U.S.Specifies requirements for establishing, implementing, maintaining andcontinuously improving an organization’s EnMS
Purpose: To enable a systematic approach to Energy Management Specific objectives:
Help organizations continually reduce energy useProvide a framework for reducing energy costsProvide a framework for reducing an organization’s carbon footprint
Source: International Organization for Standardization (ISO).
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4. ENERGY MANAGEMENT TEAM
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WHO BELONGS ON THEENERGY MANAGEMENT TEAM?
Energy Manager• Responsible for coordinating the energy management (EM)
program.Energy Management Committee
• TechnicalSeveral persons with a strong technical background toprovide technical assistance for the manager and plant-level people.
• SteeringChosen from all major areas of the company to help guideprogram activities and help communicate through all levelsof the organization.
Maintenance Staff • Must be included, since they are most familiar with energy-related
maintenance costs and can help prioritize tasks.
Source: Patrick Crittenden, University of Technology, Sydney.
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ENERGY MANAGEMENT TEAM:KEY FUNCTIONS
Purchase or supply energy at the lowest possible cost
Ensure energy is used at the highest possible efficiency
Utilize the most appropriate technologies to meet organizational needs
Source: Patrick Crittenden, University of Technology, Sydney.
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WEEK 1: IN-CLASS EXERCISES
I. What are some of the major goals of Energy Managementframeworks? How are these common to the approaches of EnergyStar, Better Bricks, and ISO 50001? How might they differ?
II. What role do stakeholders play in the development of an effectiveEnergy Management System (EnMS)? Describe the process ofstakeholder analysis and its objectives.
III. Who are some of the key players of an effective energymanagement team? Why do they need to participate, and whatpurpose does each serve?
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WEEK 1: HOMEWORK
1. Consider the Imperial building in our portfolio,including its primary uses, and its occupants (asbest you can). Then, identify the stakeholderswhose interests would be affected by changes atthe site, and consider the conflicts and sharedbenefits that might arise. Finally, discuss howchange leaders could involve them meaningfully
in the process2. Among the identified stakeholders, what level ofawareness would you expect to find about thebusiness benefits of energy efficiencyimprovements? To what extent do thosestakeholders currently support (or hinder)energy efficiency improvement? What more could
key stakeholders be doing to better supportenergy efficiency improvement?3. What could you do to develop their awareness
and support?