Energy Management: Concrete Actions CEOs Can Take Now
Building capabilities to ensure that everyone is energy-aware can help strengthen and drive an organisation towards strategic energy management goals. Approaches to improving capabilities often differ, depending on the energy management maturity of the company. Elevating good competencies that spot energy inefficiencies to improving operations substantially so that inefficiencies rarely occur takes time and planning depending on the size of the operation and budgets allocated.
However, there are some concrete actions that CEOs can take now to improve energy management relatively easily and quickly.
You can't control what you can't measure
As energy costs and investments increasingly influence a company's profit and loss, monitoring and measuring energy expenditure is a crucial step in a company's ability to influence and control energy use. Upgrading or installing better energy metering systems and re-evaluating energy supply agreements are cost-effective ways to improve the visibility of energy use. Improve measurement and testing methods by using energy-reading devices that collect data and can be analysed in real-time. These 'smart' tools allow companies to build a more accurate picture of their energy use over different periods, helping to identify energy patterns and problems that enable better management of operations.
Explore energy conservation mechanisms
The most effective energy conservation mechanisms will not impact productivity or production targets. Simple approaches can include analysing energy performance data and re-establishing baselines, to conducting brainstorming sessions between the workshop floor and management on initiatives to improve day to day operations. For example, this could be regular leak monitoring exercises to analysing how much hydrogen or nitrogen a plant is consuming. Once monitoring mechanisms are in place, it's easier to assess what actions to take to improve outcomes, such as boosting equipment maintenance programmes or shorter interval controls. It's an approach that requires improving operational excellence rather than implementing intensive change.
Elevate energy as a strategic driver
Energy investments can significantly impact the company's asset footprint and have an substantial CapEx price tag. Hence, reconsidering the set-up of your asset footprint can play out as an important competitive advantage. This includes the ability to control, measure and put in place mechanisms that improve energy use by establishing an energy management framework visible across the organisation. By elevating energy as a strategic business driver, leadership immediately demonstrates a commitment to reaching targets. Once established as a core business concept, developing a framework that puts in place mechanisms to achieve energy targets and set and monitor key performance indicators improves accountability to all stakeholders. It also highlights how better energy management can improve operations across different levels of the organisation.
"Nominating energy 'champions' who are directly accountable can help strengthen energy management ideas and initiatives deeper within the organisation."
Empower employees
Any energy management plan is only as good as its operators. So nominating energy 'champions' who are directly accountable can help strengthen energy management ideas and initiatives deeper within the organisation. Empowering employees to own and deliver plans also gives them the confidence to put forward new energy-saving ideas based on (often untapped) front line operational knowledge. Involving a broader set of stakeholders in energy management plans demonstrates a company's commitment and ambition to reducing energy use.
Avoid a silo mentality
Often a significant barrier to implementing new ideas is the existence of organisational silos where there is a general lack of connection between different business functions and operations and has a general de-stabilising effect on business operations. When evaluating energy opportunities, it's essential to take an inclusive and multidisciplinary approach. Additionally, by taking a horizontal approach to evaluating opportunities across commercial, technical, environmental, health and safety teams, energy management can be vetted and appropriately assessed based on cost, ease of implementation, and operational impact, as well as environmental criteria.
4 thoughts to consider in your energy management strategy
In a world where environmental sustainability is an increasingly essential investment metric, organisations need to adopt a more efficient approach to managing their energy consumption.
So what tactics can companies take to improve energy management strategies easily and quickly?
Thought #1:
Obtaining a complete picture of energy use is crucial to developing an efficient energy management strategy. Using smart tools that collect data and measure usage can identify energy patterns more accurately.
Thought #2:
Improve operational disciplines to help identify energy inefficiencies such as water leaks and equipment maintenance. Putting in place simple mechanisms such as shorter interval controls can support and improve energy management strategies.
Thought #3:
Develop a clear framework that gives visibility to energy management strategies and highlights commitment to targets set. Adopting energy management as a strategic business driver gives weight and importance to strategies to give a clear competitive advantage.
Thought #4:
Implement a horizontal strategy that involves all levels and disciplines of the organisation to ensure energy conservation ideas move from test phase to implementation. Taking a multi-disciplined approach improves success.
"Adopting energy management as a strategic business driver gives weight and importance to strategies to give a clear competitive advantage."
Join the movement
Environmental sustainability is imperative and has become a key focus for all organisations. dss+ has supported small and large companies worldwide to strengthen, develop and implement strategies to improve environmental objectives and keep businesses operational safely.
Using this experience, we have developed a framework for organisations to clearly and efficiently manage energy. As Environmental, Social and Governance (ESG) priorities take centre stage, we invite you to join the movement on preparing your teams for managing energy consumption together.
Business leaders
