Energy & Environmental Management Program - The Importance of Corporate Commitment

Energy & Environmental Management Program
The Importance of Corporate Commitment

The Key to Success
Corporate commitment is the key ingredient to a successful energy and environmental management program.
Most organizations most likely will need to dramatically change its culture in order to achieve and sustain meaningful results from an energy and environmental program.
To create change, there must be COMMITMENT.

How do you convince senior executives that energy and environmental management is worthy of corporate commitment?
Just follow the 5 essential steps described in this presentation...

Essential Steps to establish Corporate Commitment
Define the magnitude of annual energy & environmental related expenditures
Set goals and objectives
Allocate adequate resources to manage energy & environment
Document policies and procedures
Establish financial parameters for capital investment in energy and environmental management projects

1. Define the Magnitude of Annual Energy & Environmental Related Expenditures
You want to define the size of the “energy and environment business” within your organization.
How much does the company spend annually on electricity, natural gas, fuel etc.?
What is the percentage of this expenditure relative to sales or controllable operating costs?
How much money is spent annually maintaining energy assets such as boilers, chillers, rooftops, lighting etc.?
How much money is spent annually on capital upgrades or replacement of these same systems?
How much labour time is already devoted to management energy and energy assets ?

2. Set Goals and Objectives
Establish concrete targets, objectives and timelines for the energy and environmental management program.
Goals & objectives:
reduced operating costs
increased productivity
increased profitability
reduced environmental footprint
improved employee awareness
improved customer image
Goals & objectives should contribute towards the long-term sustainability of the organization

3. Allocate Adequate Resources to Manage Energy and Environment
A good rule of thumb would be to allocate 3 to 5% of the annual energy and environment related expenditure towards the program.
Appoint an Energy Manager or Champion as well as internal and/or external resources dedicated to assisting in procurement, accounting and energy efficiency.

4. Document Policies and Procedures
Provides consistency and standardization – creates a seamless process to follow.
Policies and procedures will help guide the overall energy and environmental management program towards achieving its goals and objectives.

5. Establish Financial Parameters for Capital Investment
Must define if and to what extent capital will be made available to fund energy and environmental projects.
Can’t spend money if there is no commitment to fund.
These terms must be understood before any project development work is initiated.

Last words…
Some Last Words…
Present your business case to senior executives and prove the importance of corporate commitment towards energy and environment within your organization
Establishing corporate commitment will increase the probability of successfully implementing an energy and environmental management program

Thank you!
Presentation by: Energy Advantage
http://www.energyadvantage.com
About Energy Advantage
Energy Advantage provides total energy management solutions to our customers’ sustainability challenges, delivering them ‘best results’ in managing their risks, reducing their costs, and enhancing their reputation within the markets and communities they serve. Our company is fully independent from energy commodity and equipment suppliers. We sit with our customers on their side of the table, providing objectivity in seeking and developing the best solutions to their energy and environmental challenges. With a depth of expertise in the energy and energy related environmental areas, we have been providing notable North American organizations with effective energy management solutions for over 12 years.

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Energy & Environmental Management Program - The Importance of Corporate Commitment

by Energy Advantage on Sep 03, 2009

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Energy & Environmental Management Program - The Importance of Corporate Commitment — Presentation Transcript