Energy leadership and why it is important to have an energy strategy

1. Energy leadership and why
it’s important to have an
energy strategy

2. Energy leadership
delivers competitive
advantage
The way organizations view energy is changing. The most forward-thinking
are taking more control of how they source, use and manage energy. We’ve
developed a model which describes the four stages of energy leadership.
Energy leadership matters because leaders significantly outperform
their peers on many business measures. In terms of approach to energy,
organizations fall into one of four stages.
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3. Stage 1
– Least advanced
These organizations see energy purely as a cost
of doing business.
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4. 51%of organizations surveyed fall
into this category.
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5. Stage 2
– Fairly advanced
These organizations have begun to consider the
role of energy more broadly. Energy is no longer just
a cost of doing business.
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6. 25%of organizations surveyed fall
into this category.
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7. Stage 3
– Very advanced
These organizations are likely to have a formal
energy strategy. They also continuously measure
energy use, seeking opportunities for improvement.
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8. 16%of organizations surveyed fall
into this category.
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9. Stage 4
– Most advanced
These organizations have a longer-term energy strategy in place. They
employ a dedicated energy team to plan, implement and maintain
the corporate strategy and supporting systems. They also have energy
specialists who plan, implement and manage their energy infrastructure.
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10. 8%of organizations surveyed have
achieved this level.
JUST
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11. What do these levels
look like?
These headline groupings are interesting – but what do the
organizations which fall into each category look like?
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12. Least advanced
These organizations are:
Least likely to consider energy
as a source of competitive
advantage or to be using smart
technology to drive efficiency.
Least likely to have dedicated
energy resources.
Least likely to see the
link between sustainability
and brand.
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13. What can
they do to
improve?
View energy as a strategic asset.
Create a formal energy strategy.
Introduce continuous energy
measurement.
Introduce energy resiliency provisions
to avoid outages/shortages.
Build partnerships with energy suppliers.
Recognize the link between green
energies and their brand identity.
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14. Fairly advanced
These organizations are:
More progressive in
their attitudes.
Moving beyond
considering energy
exclusively as a cost of
doing business.
More likely to have
dedicated energy staff.
More likely to see
the link between
sustainability and
their brand.
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15. Create a formal energy strategy.
Introduce continuous energy
efficiency monitoring.
Deploy energy resilience measures
to cope during outages.
Build partnerships with their
suppliers.
Increase buy-in at the C-suite level.
Strengthen their focus on green
energy initiatives.
What can
they do to
improve?
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16. Very advanced
These organizations:
Are more likely to have
a formal strategy.
Measure energy usage
on a continuous basis.
Have approaches
in place to reduce
energy risk.
Use energy efficiency
solutions more widely.
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17. Develop a stronger link between their
energy strategy and business goals.
Increase use of dedicated specialist
professionals.
Invite more C-suite execs to assist with
setting energy strategy.
Strengthen energy measurement
provisions.
Deploy advanced solutions to improve
energy resilience.
Deepen partnerships with suppliers.
What can
they do to
improve?
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18. Most advanced
The most advanced energy leaders:
Have the
most
progressive
attitudes
towards
energy.
Are the
most likely
to have a
formal energy
strategy.
Are the most
likely to have
a dedicated
energy team.
Are the most
likely to be
continuously
measuring
energy.
Are the most
likely to
see energy
providers as
partners.
Have a
broad range
of senior
stakeholders
more likely to
be involved in
setting energy
direction.
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19. 8%still have room for
improvement.
Still room for improvement
THIS
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20. If they are to keep their competitive advantage, energy
leaders should focus on:
Prioritizing energy as a route to
deeper efficiency and growth.
Obtaining buy-in from the
C-suite for the energy strategy.
Strengthening supplier
partnerships.
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21. Does your energy
strategy really
matter?
In a word – yes. Having an energy strategy will
help you to become an energy leader.
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22. A good energy strategy
Demonstrates C-suite
level support.
Defines targets and
commits to improving
how energy use is
monitored.
Shows how you’re
going to meet your
targets.
Shows stakeholders
why it’s a good idea.
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23. 2.5x
more likely to be
achieving strong
financial performance.
Energy leaders are:
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24. 2.3x Energy leaders are
2.3x more likely to
be a leading brand
in their market.
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25. Are you ready
to become an
energy leader?
Complete this Energy Leadership
Assessment to see how you can
move your maturity levels.
FIND OUT YOUR LEVEL OF ENERGY LEADERSHIP
Source: The Energy Advantage Report, Centrica Business Solutions. Statistics based on a six-country
survey of more than 1,000 energy decision-makers in large organizations. 25