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What does energy savings meanto business?

 Jan 14, 2015

2014 proved to be exciting for the energy scene in the U! "n one hand,

#arge organisations are re$uired to report on their greenhouse gas emissions

%&andatory 'reenhouse 'as (eporting) and carry out energy assessment

%*nergy +avings "pportunity +cheme) covering at #east 0- of their tota#

energy consumption! .ompanies not comp#ying /ith the mandatory

assessments and reporting /i## be ned and named and shamed!

"n the other hand, po#iticians are asing energy companies to freee their

energy tari3s, "'*& re$uesting the .ompetition and &arets uthority%.&) to investigate a##egations of over anti6competition and excessive

proteering! With four of the #arge e#ectricity generation capacity shut,

7ationa# 'rid %28 "ct 2014) announced a #o/ ris of a b#ac out this /inter 9

assuming the temperature this /inter is no #o/er than #ast year! :aving said

that, the report did not prec#ude the possibi#ity of grey outs %partia# b#ac

outs) if a severe /inter is experienced in the U!

 ;his is a perfect opportunity to revisit the #ong forgotten, yet, free#y avai#ab#esource of energy< energy savings! (esearch suggests that /e possess

techno#ogies and capabi#ities to use =2->1 #ess energy and up to 25->2 of

these can be saved /ithout ma@or capita# costs and changes to business

practices! :o/ever, according to the Anternationa# *nergy gency %A*), /e

are on#y achieving an energy eBciency of s#ight#y #ess than 1->C per annum!

s such, there is a #arge scope to save energy and it brings benet to the

environment, individua#s, organisations, and the country as a /ho#e! "n the

surface, this artic#e appear to be Dpreaching to the convertedE! Af you /ere to

read /ith an open mind, it may contain ne/ insights to add to your energy

saving arsena#!

*nvironment

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Fue to the /ide coverage on media, schoo#s, and the pressure groups at

every c#imate re#ated conferences, the environmenta# benets of energy

savings is /ide#y no/n< reduction in ." emissions! ;here are some

controversies on the imp#ication of increasing ." concentrations in the

atmosphere!

+ome say the evidence speas for itse#f and the e3ect of c#imate change is

rea# and observab#e! "ther say the data, taing into consideration of

historica# trends, is not so c#ear! ;here are a#so some /ho criti$ue the

invo#vement of 7'"s and government in nancing andGor appointment of

scientic personne# that direct#y or indirect#y inHuencing the ndings!

"ne thing is for certain< no one or body is criti$uing the fact that /e areconsuming more energy, #eading to a rise in ." concentration in the

atmosphere! ;his is an uncha##enged fact! ;here are reams of data, oBcia# or

other/ise, sho/ing this as a matter of fact! What is #ess common#y no/n is

that /e are consuming resources avai#ab#e on this p#anet at a rate of 1!5

p#anet!>4

:ere #ies the rea# issue< there is on#y one p#anet earth and a## resources /e

consume comes from the p#anet! When it runs out, there are no more! Iet, /eare consuming p#anetary resources 50- faster than it can be regenerated! An

addition, the other p#anetary resources having a ro#e to regenerate energy

sources are at ris too< biodiversity #oss c#imate extremes change in #and

use accumu#ation of greenhouse gases fresh /ater ocean acidication

oone dep#etion and nitrogen and phosphorus consumption!>5

 ;hus, saving 25- energy %1) reduces the $uantity of ." emitted to the

atmosphere %2) more of the existing energy sources is avai#ab#e for the

future %C) a##o/s ." accumu#ation to stabi#ise and %4) a##o/s p#anetary

scientist more time to better assess on the e3ect of ." and deve#op methods

to adapt to c#imate change!

Kusiness +urviva#

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"ne ey factor in business surviva# is comp#iance /ith the #a/s of the #and,

the most recent being *nergy +avings "pportunity +cheme %*+"+)! or a

revie/ of *+"+, p#ease see A balanced view to ESOS compliance, What can

the U #earn from ustra#ia /hen it comes to energy eBciency?and Can ISO

50001 be achieved in 12 Months?Figure 1 sho/s the natura# gas and e#ectricity prices bet/een 200C and

2014! ;he average natura# gas price has increased by 1LC- in the #ast 10

years! An the same period, the average e#ectricity price has gone up by 21L-!

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igur

e 1< verage U of natura# gas and e#ectricity price bet/een 200C and

2014!Source Adapted !rom "epartment o! Climate Chan#e$s Industrial #as

 prices in the E% !or small& medium and lar#e consumers and Industrial

electricit' prices in the E% !or small& medium& lar#e and e(tra lar#e

consumers )both dated 25 Sept 201*+,

With the average cost to bui#d ne/ oi# /e##s and renery risen by 10 fo#ds

over the #ast decade>L, the capita# cost is going to continue to rise as

commercia##y avai#ab#e sources of fossi# fue#s are dep#eted!

 ;he energy cost for many organisations in the U is typica##y 10 9 15- of its

tota# operating cost! ;his means that a 25- energy reduction cou#d resu#t in a

2!5- direct cost savings! Ancidenta##y, to mae the same margina# prot, the

organisation /ou#d need to se## 25- more products or servicesM

 ;here is another driver for energy savings< the impact of energy through its

supp#y chain! s many carbon footprint studies have sho/n, the energy

component of each individua# company re#ative to the tota# in its supp#y chain

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is rather sma##! An the case of Wa#ers .risps, energy it consumes accounts

for C0- of its supp#y chainsN!

ssuming an organisation has a ra/ materia# manufactured by ve

companies in its supp#y chain! ssuming a#so that each organisation passes

their cost savings to its customer, the net e3ect of a 2!5- savings in each

organisation /ou#d be 12!5- savings to the end6customer! .onverse#y, if no

energy savings are made, an annua# rise of energy price by 2!5- cou#d /ipe

out an entire supp#y chain as they are no #onger ab#e to sustain the cost of its

operations!

.ountry Kenets

Fue to the #ac of p#anned investments in po/er p#ants in the #ate 2010s,

acce#erated p#ant c#osures due to end6of #ife assets, "'*& predicts that the

excess capacity for U is in the region of 2 9 C-!>= An p#ain *ng#ish, this

means that, assuming there is no natura#, c#imatic changes andGor

catastrophic fai#ures in the net/or, and U shou#d have 2 9 C- excess

capacity over the next fe/ years, there is no ris of b#ac outs and grey outs!

Af any of these incident occurs, as in the /inter of 2011 6 201C, the ris of

b#ac outs and grey outs increases!

 ;he U needs to decarbonise the po/er net/or by bringing do/n the ."

emissions from over 500 gGWh to #ess than 50 gGWh by encouraging O1!2

tri##ion private sector investment %u#timate#y paid for by the consumer)!>8

 ;o bring in ne/ e#ectricity capacity is a#so not a matter of months! At taes

severa# years before ne/ capacity can be brought on#ine in a safe,

environmenta##y secure and comp#iant manner! *ven if money is no ob@ect

and the U 'overnment commissions ne/ po/er p#ant no/, it on#y generate

usefu# po/er by #ate 201!

:aving said that, e3orts to bui#d environmenta##y friend#y energy sources and

at the same time, ensure it is a3ordab#e to a## are not compatib#e! *very time

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the energy companies dec#ares a prot, there is a pub#ic outcry about

excessive proteering and immora# executives in the energy companies and

government promising interventions to curb prots! Private sectors do not

invest un#ess they can mae a prot! ;he existence of the t/o conHicting

energy po#icies has deva#ued uti#ity companies by more than 50- of its va#uesince Jan 200!>

25- energy reduction /ou#d immediate re#ease 25- of current#y uti#ise

capacity! ;hat /ou#d means that the U cou#d to#erate hasher /inters /ithout

b#ac outs and grey outs! At /ou#d a#so mean that rather than investing O1!2

tri##ion on an ad hoc panic manner, there are more time to carefu##y identify

and assess feasibi#ity in an environmenta##y sustainab#e and nancia##y sound

manner!

Persona# 'ains

or each individua#, the benets of energy savings are three6fo#d!

irst#y, organisations can have a more protab#e operations and remain open

for business! "rganisations /ith #o/er operating cost are better e$uipped to

to#erate and absorb demanding customer demands and cost uncertainties! An

the case /here the organisation are among the rst movers in energy

savings, energy savings cou#d a#so provide the competitive edge against its

competitor! ;hus, eeping peop#e in emp#oyment!

+econd#y, no organisations /ants to invest in countries /ith fre$uent bro/n

outs and b#ac outs! At creates @obs and gives peop#e more options to remain

in emp#oyment! An addition, energy savings he#p to create a sustainab#e

environment that attracts business investments! At a#so creates a ne/ sector

of specia#ist energy savers and gives an a#ternative option for emp#oyment!

 ;hird#y, as many psycho#ogist and socio#ogist /ou#d attest to the e3ect of

sma## /ins! Ky taing an active ro#e to save energy and the benets it entai#

can #ift the moods and attitude of peop#e! *ven a sma## action or tiny progress

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can #ift the out#oo of each individua# person! s the saying goes, happy

peop#e maes good $ua#ity products or provides good $ua#ity services! ;he

resu#t mu#tip#ies!

Kringing common sense into commonpractice

Af, someho/, a## U and *U corporations imp#ement energy eBciency and

reduce energy consumption by 25- /ithout ma@or capita# expenditure, /e

%1) pro#ong the supp#y of fossi# fue#s, %2) immediate#y save 25- from our

energy costs or 2!5- o3 our operating costs, %C) re#eases 25- energy

capacity and stay a/ay from b#ac outs and grey outs, %4) peop#e are happierand more productive as a resu#t!

 ;hatNs i##ing four birds /ith one stone< by each saving 25- of its o/n energy

consumption! Whi#e the benets are rather common sense, it is not common

practice! ;here are many issues in the /ay of organisations /anting to save

25- of its energy consumption! An next monthNs post, /e /i## examine the

ey issues and ho/ organisations can address them!

n abridged version of this artic#e appeared in 2degrees 7et/or as D*nergy

eBciency< AtQs common sense so /hy isnQt it common practice?E and in n$a

Ansight as DWhat does saving energy mean to U p#c?E

it "ung is an experienced energy manager at *nergy *Bcien<o#ogy, board

member of *nergy &anagersN ssociation, and dvisory member of 2degrees

7et/or! :e is the author of *nergy &anagement in Kusiness< ;he &anagerNs

'uide to &aximising and +ustaining *nergy (eduction %'o/er) and *nergy

udits< ;he ey to Fe#ivering (ea# *nergy (eduction %K+A)!

>1 .u##en, J&, ##/ood, J&, and Korgstein, :, D(educing energy demand<

What are the practica# #imits?E, J *nviron +ci R ;echno#, 2011, 45%4), pp1=116

1=18

>2 *nvist P, 7auc#er, ;, and (iese, J, 2008! What countries can do about

cutting carbon emissions? &cinsey Suarter#y, 7o!2, &cinsey R .ompany!

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>C *nergy ;echno#ogy Perspectives 2008, Anternationa# *nergy gency< Paris,

2008

>4 +charmer, ", and aufer, ! 201C! Teading from the emerging future<

rom ego6system t eco6system economies! +an rancisco< Karrett6oeh#er

Pub#ishers!

>5 (ocstrm J, +te3en W, 7oone , et! a#!, 200! P#anetary boundaries<

*xp#oring the safe operating space for humanity! J *co#ogy and +ociety, 14%2)<

C2!

>L Fobbs, (!, "ppenheim, J!, ;hompson, !, et! a#! 2011! (esource revo#ution<

&eeting the /or#dNs energy, materia#, food, and /ater needs! &cinsey

'#oba# Anstitute! 7ovember 2011! &cinsey R .ompany!

>= o#oathis, .! 2014! *#ectricity capacity assessment report 2014! C0 June

2014! "'*&!

>8 therton, P! 2014! *U and U energy po#icy under severe stress!

presentation by Peter therton of Tiberum .apita# at the :ouses of

Par#iament! 2L &arch 2014!

> therton, P! 2014! *U and U energy po#icy under severe stress!

presentation by Peter therton of Tiberum .apita# at the :ouses of

Par#iament! 2L &arch 2014!

Kringing discip#ine to energy

saving Jan 14, 2015

We exp#ored four /in6/in reasons /hy energy reduction is essentia# for the

environment, business surviva#, country, and persona# gains! An theory,

commerce and industry cou#d a#so save 25- of its energy consumption /ith

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re#ative #o/ e3ort! An practice, /e are achieving #ess than 1- energy savings

year6on6year! ;here are many reasons for this poor resu#ts in energy savings<

1! Diferent job unctions in an organisation have difering

interest on the company asset. Fesigners, maintenance, operations,

nance, o/ners, uti#ities, etc! have di3ering interest and drivers on thesuccess of the company! or examp#e, operations team /ants to run the

asset as #ong and possib#e! &aintenance team /ants to asset to stop for

good $ua#ity maintenance! Anter6departmenta# conHicts a#so extends into

/ho Do/nsE andGor Dis responsib#e forE energy savings!

2! Senior managers paying little attention to energy savings

initiatives. "n average, energy cost is bet/een 5 9 15- of the

organisations tota# operationa# cost! ;he biggest cost component is

typica##y human resources and ra/ materia#s! +enior management, the

group of peop#e that have the most no/#edge about its business and

fu## authority to direct the organisationNs e3orts, treats energy as a

re#ative#y unimportant xed cost and re#egates the energy savings tas

to @unior emp#oyees!

C! Leaving junior employees to ght upwards or authorities and

resources.&any senior managers a#so expects the @unior emp#oyees or

externa# service provider to navigate the organisations po#itica# and

socia# structures, disarm a## technica# and non6technica# barriers, and

manage energy up/ards into and inc#uding the activities of seniormanagers! ;his is a very big tass and one that senior managers expect

magic to happen! Very often, this is a ma@or stumb#ing b#oc!

4! dding margins or comort in e!uipment specication. dding

margins for DerrorsE is a very common phenomenon! Peop#e do it for a

variety of reasons ranging from the need to cut cost to adding additiona#

comfort that the e$uipment purchased /i## do the /or! or examp#e,

the engineer cou#d specify for a 15 W pumping duty but the actua#

insta##ation ends up more than t/ice the sie by the rounding up and

safety margins of consecutive peop#e approving the siing, i!e! the

senior engineer, engineering manager, purchasing coordinator,

e$uipment sa#esman and e$uipment manufacturer!

5! "mplementing poorly conceived opportunities or

improvement. ;he #ac of senior management support and guidance,

coup#ed /ith the need to create $uic resu#ts #ed many @unior emp#oyees

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to focus pure#y on technica# opportunities /hich does not invo#ve or

need inputs of other emp#oyees! or some, the pro@ects may be poor#y

dened or have not taen into consideration of other organisationa# or

operating re$uirements! +ome techno#ogica# so#utions may have its

return on investment a3ected by other opportunities!L! Stuc# in a perpetual cycle o perectionism. #ternative#y, the

 @unior emp#oyee, fearfu# of maing the /rong decisions andGor incurring

the /rath of senior management, get stuc in a psycho#ogica# need to

be very accurate in their ca#cu#ation or constant#y maing minor t/eas

on the action p#an! "rganisation are unab#e to progress /ith energy

eBciency initiatives because they are chasing perfectionism!

 ;hese issues are very common in commerce and industry! At a#so means that

organisationsN e3orts to maximise energy savings /hi#e minimising

investment cost is hampered!

 ;he ve aspects to managing energy

Very fre$uent#y, these issues are a#so poor#y understood and passed o3 as

organisationa# po#itics andGor incompetency! .ontinua# conHicts resu#ts in

things do not get done in a manner that is benecia# to the /ho#e

organisation! +ome be#ieve that these are re#ated to the organisationa#dynamics and structura# issues! :o/ever, no one studied them, assessed

ho/ to go about unpicing these issues, and are #eft it Das isE!

:arvard Kusiness (evie/ na#ytica# +ervices>1, *conomist Ante##igence

Unit>2, and .rane#d Kusiness +choo#6inancia# ;imes>C found broad#y

simi#ar insight into the reason /hy organisations are s#o/ is saving energy!

.arefu# ana#ysis of these issues can revea# ho/ these issues cou#d be

reso#ved!

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Fig

ure 1$ %op reasons organisation are not investing in energy

savings.Source "ata adapted !rom Cran-eld .usiness School/inancial

imes stud',

 ;he .rane#d6; survey found six of the nine reasons for organisationsN

s#uggish attitudes and uptae on energy savings are due to interna# issues!

 ;he six bu##et points described in the previous section are mere#y

manifestations on the issued top managers described as barriers! ;o disarm

the barriers faced by organisations and acce#erate energy savings re$uire a

di3erent mode#< the ve aspects of managing energy!

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Figure &$ Five aspects o managing

energy.

pp#ying a good management system

+ix of the nine barriers sho/n in igure 1 has its root in poor #eadership or the

management team giving #ip service to energy savings! ccording to *d/ards

Feming, over 0- of a## organisationa# issues arise because of the systems

and structura# processes peop#e put in p#ace!>4 "ver time, these conscious

decisions fades into forgotten memory, remain uncha##enged and accepted asfacts!

"n#y 22- of directors surveyed agreed that they fu##y understand their

businessN strategies and is comp#ete#y a/are of ho/ their business creates

va#ue! =4- of them a#so nger point themse#ves for the emphasis on short6

term nancia# gains and under6emphases its #ong6term duciary duties!>5

s a resu#t, a signicant ma@ority of boardrooms do not ta# about energy! "fthose that do, t/o6thirds of them have more than 10 di3erent focus, /ith a

se#ect fe/ having more than C0 initiatives on one goM>L ;op management in

an organisation needs to dene and tae the he#m for a set of coherent

action p#ans to address energy savings! Without this, the midd#e

management and business units /onNt and fragmentation begins!

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.entra# to this is the app#ication of a good governance! ;here are many

management systems avai#ab#e< John ottersN .hange &anagement, (obert

ap#an and Favid 7ortonNs Ka#ance +corecard, *d/ards FemingsN P#an6Fo6

.hec6ct @ust to name a fe/! ny good management system have severa#

bui#t6in features that bring to the fore issues that need to be addressed! ;hese are<

• Use consistent #anguage

• Who#e rm invo#vement

• ##ocate responsibi#ities and resources ear#y

• .ha##enge estab#ished assumptions

• Antegrate into dai#y operations

• Uti#ise appropriate performance measurements

• Antegrate into #ife cyc#e

• .ontinua# improvement

• +et stretched but achievab#e ob@ectives

 ;ogether, these features brings focus and structure for senior managers to be

active#y invo#ved, using a consistent and unied /ays of /oring to bring

about continua# energy savings!

"rganisation need to understand the fundamenta# princip#es of management

systems! good and thorough understanding of these features embedded in

a## good management systems a##o/ organisations to have a consistent and

unied /ays of /oring! or those seeing externa# assurance, the same

/ays of /oring can be extended to inc#ude additiona# $ua#ity features %A+"

001), additiona# environmenta# features %A+" 14001), additiona# energy

features %A+" 50001), etc!

.hoosing the right too# and techni$ues at

the right time and p#ace

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s externa# staeho#ders have #itt#e inHuence over the numerous

organisationa# issues having an impact on energy saving, the attention has

been to focus on creating energy eBcient techno#ogies! Universities and

techno#ogica# organisations chased to the most eBcient products! Anstitutions

and associations form #obby groups to speed up imp#ementation and di3usionof techno#ogies! 'overnments and 7'"s constant#y come up /ith po#icy

stics and carrots to mandate energy eBcient techno#ogy uptaes!

:o/ever, the use and promotion of energy6eBcient techno#ogies are on#y

achieving a fraction of its potentia#! +urveys by the Anternationa# *nergy

gency reported that #ess than 1- savings has been achieved year on year!

>=

s a side e3ect of techno#ogy6focused energy savings, many of the

#anguages and termino#ogies used are very scienticGengineering in nature!

signicant ma@ority of the genera# pub#ic and organisations 9 concerned /ith

their o/n business activities 9 are #ess /e## versed in energy and in

techno#ogy! Phrases #ie Dhigh eBciencyE, DpremiumE, DgreenE, DsmartE, and

DecoE are mere#y Db#ac boxesE to mae the organisation more energy

eBcient!

An addition, a #ot of service providers a#so ca##s their service o3ering by many

combinations on naming conventions! +ome common naming conventions

other than an assessments are< audits, survey, assessment, revie/,

examination, aien, treasure hunt, diagnostic, etc!

 ;his has created a #ot of confusion by organisations on /hat is the exact

scope and de#iverab#e in an energy audit! Ky inference, the price comparison

of energy audits! ;he Fepartment of *nergy and .#imate .hangesN %F*..)

*nergy *Bciency +trategy documents>8 four ey barriers to/ards /ide

adoption of energy eBciency and energy audits! ;/o of the four barriers has

it root in varying methods and naming conventions in identifying

opportunities for improvement!

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Kased on avai#ab#e too#s and techni$ues, there is a technica# abi#ity to reduce

energy consumption by up to =C-!> An addition, up to 25- of the savings

can cou#d save /ithout ma@or capita# costs and changes to business

practices>10 and can be found in eight opportunities<

1! 'ood maintenance

2! Ansta##ing correct#y

C! +ie e$uipment to match demand

4! ;urn o3 /hen not re$uired

5! "perate e$uipment to match demand

L! Ad#e time

=! Ansu#ation

8! :eat recovery

An order to maximise the energy savings potentia# and minimise investment

cost, senior managers need to identify and use the right too#s and techni$ues

at the right time! ;here is no right /ay or /rong /ay to choose the too#s<

energy accounting, auditing, benchmaring, or performance contracting! ;he

important thing is to match the right too#s at the right time and p#ace! Using

the right too# at the /rong time, cou#d mean that the organisation either %1)

does not get the necessary information to mae investment decisions or %2)cost the organisation signicant amount of money for the information

needed!

Using information to convert energy

consumption from Dxed costE to Dvariab#e

costE

or many organisation, energy cost represents the third or fourth #argest

portion of their operating costs! An the U, a typica# gure of 5- 6 15- comes

to mind! ;he bigger, and fre$uent#y more cha##enging, cost component are

human resources and ra/ materia#s!

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.oup#ed this /ith the be#ieve that %1) managing energy is something

regu#ation Dapp#y to themE rather than an important Dpart of operationa#

managementE, and a#so %2) the a#ien6#ie #anguages used in energy savings,

many senior managers conc#ude that energy is a DxedE cost! +uch a

menta#ity creates t/o ma@or issues<

• +enior manager de#egates the tas of energy to #o/er #eve# emp#oyees,

choosing to concentrate on other more pressing business!

• Amp#ementing recommendations andGor incorporating energy eBciency

become a comp#iance activity rather than an opportunity!

&ore than 50- of organisations do not have corporate ob@ectives and tass

re#ated to energy! An addition, #ess than 20- of the senior management tae

fu## advantage of the nancia# benets from saving energy in the

organisation!>11 .orporate target and initiatives to save energy become

fragmented and #ac #ustre!

 ;o counter this phenomenon, organisations need to vie/ energy as a variab#e

cost, a commodity that varies /ith the organisationNs business activity!

*nergy base#ines a##o/s the organisation to vie/ energy in proportion to its

business activity and sho/ that imp#ementing energy saving

recommendations changes the base#ine! or organisation /hose energyconsumption donNt vary /ith its business activity, it presents an opportunity

to examine the phenomenon and begin to understand /here energy in used!

rmed /ith a #ist of recommendations, senior managers a#so need to tae

into account the other benets energy savings can bring to the organisation!

 ;hese additiona# tangib#e %e!g! maintenance, product improvements, $ua#ity,

throughput, schedu#ing, better /or environment, etc!) and non6tangib#e %e!g!

sta3 motivation, #o/er sta3 absenteeism, va#ue for c#ients, #o/6cost supp#ychain, attracting top ta#ents and investors, #o/ering cost of capita#, brand

reputation, maret share, etc!) benets can be gained from the imp#ementing

energy saving recommendations!

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Kringing peop#e in the $uest for energy

saving

s /ith a## organisationa# initiatives, peop#e is centra# for energy savings to

occur! Without active e3orts to design and faci#itate the smooth

imp#ementation of energy saving recommendations, they are consigned to

the she#ves and doomed to become D@ust another initiativeE! *ngaging

emp#oyees can be mean that they are cooperative to faci#itate energy

savings initiatives! *ngaging them /rong#y cou#d a#so mean that nothing gets

imp#emented!

t the heart of authentic engagement is about ho/ each person in theorganisation re#ate to one another, the under#ying assumptions about each

otherNs ro#es and responsibi#ities! At is a#so about the /ay the organisation

addresses the issue of trust, fear of conHict, #ac of commitment, avoidance

of accountabi#ity, and inattention to every aspects of organisation hea#th!

Without authenticity in peop#e engagement, corporate ob@ectives and targets

become vague, become meaning#ess, and if not carefu# drives the opposite

behaviour than intended! Peop#e /ithin the organisation prioritise facing faceand avoids accountabi#ity and responsibi#ity! 'roup thin and oBce po#itics

sets in!

 ;here is no secret formu#a in engagement, no go#den cha#ice and certain#y no

si#ver bu##et! At is a## about app#ying common sense< do onto others /hat

youNd expect others to do to you! Af you donNt #ie to be treated in certain

/ays, then donNt do it to others! +enior #eaders and management teams have

a #arge ro#e to p#ay in setting the sty#e of emp#oyee engagement!

Kring it a## together

 ;he mu#tip#ier e3ect brings a## four aspects together! "rganisations /ho #acs

accountabi#ity creates an environment /here oBce po#itics pro#iferates!

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+enior management /ho active#y participates in maing energy savings /or

creates an environment /here ideas for energy savings continues to be

found! ;his is a#so an opportunity to continua##y revie/ and rene/ the

organisations e3orts in energy saving< to #earn from things that didnNt do /e##

and to nd better /ays for imp#ementation!

or organisations to be successfu# in maximising and sustaining energy

reduction, senior managers need to understand the ve aspects at p#ay! ;he

ey is to focus on being competent in each of the ve aspects to tap into

synergistic e3ects!

'enera# consensus from various researchers indicates that organisations /ho

are competent in a## aspects of managing energy saves t/o time moreenergy or achieves their target at ha#f the time! An addition, organisation /ho

app#ies the four aspects described a#so achieve benets in other areas of the

business< *KA;, gro/th in enterprise va#ue per boo va#ue, gro/th in net

income per unit sa#es, $ua#ity output, #o/er in@uries, and energy consumption

compared to their competition!

n abridged version of this artic#e appeared in 2degrees 7et/or as

DKringing discip#ine to energy saving initiativesE, and in n$a Ansight asDKreaing do/n barriers to energy savingsE!

it "ung is an experienced energy manager at *nergy *Bcien<o#ogy, board

member of *nergy &anagersN ssociation, and dvisory member of 2degrees

7et/or! :e is the author of *nergy &anagement in Kusiness< ;he &anagerNs

'uide to &aximising and +ustaining *nergy (eduction %'o/er) and *nergy

udits< ;he ey to Fe#ivering (ea# *nergy (eduction %K+A)!

>1 ;he future of energy! :arvard Kusiness (evie/ na#ytica# +ervices!

:arvard Kusiness (evie/< &assachusetts, 201C

>2 +ustainabi#ity insights< Tearning from business #eaders! "ctober 201C! ;he

*conomist Ante##igence Unit!

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>C .ombining prot and purpose< ne/ dia#ogue on the ro#e of business in

society! "ctober 2014! .rane#d University +choo# of &anagement and

inancia# ;imes!

>4 .ovey, +!(! 2004! ;he 8th habit< rom e3ectiveness to greatness! Tondon<

+imon R +chuster!

>5 Karton, F! and Wiseman, &! 2015! Where boards fa## short! :arvard

Kusiness (evie/, Jan 2015!

>L Konini, +! and +/art, +! 2014! .rin#in# discipline to 'our sustainabilit'

initiatives! &cinsey Suarter#y! ugust 2014!

>= *nergy ;echno#ogy Perspectives 2008, Anternationa# *nergy gency< Paris,

2008

>8 Fepartment of *nergy and .#imate .hange! 2012! ;he energy eBciency

strategy< ;he energy eBciency opportunity in the U! 7ovember 2012!

> .u##en, J&, ##/ood, J&, and Korgstein, :, educin# ener#' demand 3hat 

are the practical limits?, J *nviron +ci R ;echno#, 2011, 45%4), pp1=1161=18

>10 *nvist, P, 7auc#er, ; and (iese J, 3hat countries can do about cuttin#

carbon emissions, &cinsey Suarter#y, pri# 2008

>11 Konini, +! and +/art, +! 2014! .rin#in# discipline to 'our sustainabilit'

initiatives! &cinsey Suarter#y! ugust 2014!