Energy leadership delivers competitive advantage

Why should you be rethinking your attitude to energy? Our research shows that the organizations taking the lead are gaining an edge.

Benefits beyond cost savings

Organizations that have invested in advanced energy solutions are already seeing a wide range of benefits. Over two fifths have already experienced a significant reduction in energy costs. And organizations are reporting benefits that go way beyond that. These range from greater control and visibility to improved resilience of supply. Almost one quarter of companies say that it has improved their reputation, and a similar proportion report that it is providing additional revenue.

“The benefit is that we are in control of our energy market. It also delivers financial returns. We are getting a return on our investment plus good PR and corporate social responsibility (CSR) ... We realize that continuous improvements and continuous energy efficiency will make us better, so half of our energy efficiency comes from a small continuous improvement program and the rest from significant capital investment.”

Sustainability Manager, Manufacturer, Ireland

Figure 2: What have been the main benefits from your energy investments so far? [Base: 891]

Energy overhaul saves hospital $1.3M a year

St. George’s Hospital Trust is the largest healthcare provider in southwest London with 8,500 dedicated staff. It serves 1.3 million people and operates one of the busiest Emergency departments in London. The hospital had been relying on a 40-year-old energy center and was in need of an efficiency upgrade. Centrica Business Solutions created a new energy strategy for the hospital, which included a new energy center and combined heat and power (CHP), boilers, efficient lighting, heating, ventilation and air conditioning (HVAC) systems and a building management system (BMS). Over the course of the 15-year contract, the projected annual savings are more than $1.3 million. That’s money that can be invested back into caring for patients and educating medical staff. It will also save 6,000 metric tons of carbon a year—equivalent to taking 3,000 cars off the road.

Stories from energy leaders

Figure 3: How would you compare your organization’s current performance against similarly sized competitors for the following? [Base: Least advanced, 156; Most advanced, 132]

More committed, bigger benefits

The most advanced organizations are establishing formal strategies that establish how their investments in energy align with business priorities. These organizations are more likely than their peers to be performing well against a range of key business measures.

Energy leaders are:

2.5 times as likely to report themselves ahead of their competitors with respect to their financial performance and being efficient and well-run.
More than twice as likely to outperform their competitors in terms of being customer-centric and being a leading brand in their market.

“What we would like to do is to generate enough power to not only power a good portion of our building, but sell any we can’t utilize at a premium on what we are capturing it for ... All of us are on board: my senior directors, my employees, everybody in the company. I think we will lead by example. I think we will see a change in attitude to energy matters—we already are.”

CEO and Chairman of the Board, Retail, USA

Point of view: Make the case for energy leadership

Our research suggests that the organizations looking at energy as more than just another cost can achieve real business gains. The most successful energy leaders are the ones that can build a strong business case by showing how what they’re doing supports performance and growth. That’s going to increasingly mean establishing formal energy strategies that link energy investments to business goals.