The Importance of Energy Management

We’re living in the age of climate emergency. People have become keenly aware that just 100 companies have been responsible for 71% of global greenhouse gas emissions between 1988 and 2015, according to the CDP.


As a result, businesses and organisations are looking at ways to reduce their energy consumption and carbon emissions, both to cut costs and reduce the threat of energy price hikes – but just as importantly because consumers increasingly demand it from companies.


The answer is smart energy management – monitoring and controlling energy usage within a building or organisation to ensure it is used more efficiently. Here’s why firms need to embrace energy management:

1. It will reduce carbon emissions

Efficient energy usage can significantly reduce a company’s carbon footprint, lowering greenhouse gas emissions by as much as 40%. Carbon emissions are the main driver of catastrophic climate change, and high-polluting organisations also risk taking a big hit to their public relations, with consumers increasingly aware of the impact of greenhouse gases. Moreover, some jurisdictions impose carbon taxes on businesses, so taking steps to reduce emissions can considerably benefit your bottom line.

2. It will reduce costs

The more energy you use, the more money your business will spend on electricity – It’s as simple as that. With energy consumption comprising 50 to 60 per cent of operational costs an effective energy management strategy is essential to reducing costs. Even simple additions to your building such as LED lights, motion sensors and smart heating systems can make a huge difference, ensuring your business only uses the energy it really requires. In this way, most organisations can save around 25-30% of their fuel costs, according to a report by McKinsey.

3. It reduces risk

Rising energy prices or supply shortage pose enormous risks to businesses, particularly as energy consumption only increases. Energy management can reduce this risk by limiting the amount of energy a business uses. It’s a vital part of future-proofing your business, and as the price of oil rises, limiting the amount of energy it uses can significantly limit long-term costs.

4. It’s innovative

A large corporation trying to meet its energy management objectives will hire skilled technicians, train existing staff, develop systems to collect and analyse data about energy usage, and even create better alignment between different parts of the business. It’s a good way to demonstrate a firm’s responsiveness and innovation.


Embracing energy management principles can often result in significant costs. Replacing old and inefficient appliances and equipment, and installing smart meters and Internet of Things-enabled devices that react to heat and light levels can be expensive. But in doing so you can reap enormous dividends.


Furthermore, improving the sustainability and energy efficiency of your business is a guaranteed route to good press. With young people taking to the streets in protests and floods, wildfires and heatwaves dominating the headlines, any positive environmental action taken by your business will win it serious plaudits and develop its green credentials. This, in turn, can strengthen your company’s market position.

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