Evaluating the Economic and Social Benefits of Energy Efficiency

Energy efficiency, sustainability, and green aren’t just trendy buzzwords – they represent a conscientious and cost-saving practice that successful businesses embrace in increasing numbers. In the past, the manufacturing and industrial sectors have developed strategies to increase energy efficiency.

Fremont, CA: Energy efficiency, sustainability, and green aren’t just trendy buzzwords – they represent a conscientious and cost-saving practice that successful businesses embrace in increasing numbers. In the past, the manufacturing and industrial sectors have developed strategies to increase energy efficiency. Recently, though, commercial companies have begun making great strides in this more environmentally and financially responsible direction.

Businesses that take the plunge are seeing fantastic investment returns and inspiring other companies to prioritize energy efficiency in the future.

Financial Benefits of Energy Efficiency

1. Reduce Utility Costs

Energy efficiency's most apparent financial benefit is reducing your business’s utility costs. According to the Environmental Protection Agency (EPA), energy-efficient buildings that have earned the ENERGY STAR label use less energy than average buildings by 35 percent. Reduced energy costs mean increased profit margins, which should incentivize any business to invest in energy efficiency.

2. Increase Productivity and Health

In every measure, productivity goes up when energy waste goes down. Reducing your costs while maintaining the same production level means doing more work or manufacturing more products for the same energy usage. Energy efficiency initiatives have the potential to boost employees’ productivity by enhancing their working environment and even their health.

3. Comply Better With Regulations

The EPA is the government body entrusted with determining and enforcing environmental regulations on individual, governmental, and commercial entities. Complying with the EPA’s rules and recommendations is necessary for any company seeking energy efficiency. While delving into the many rules and regulations the EPA has in place may be intimidating, it is worthwhile for legal and financial reasons.

4. Reduce Waste

Unfortunately, the U.S. wastes more energy than any other country. In some respects, the U.S. marketplace is fixated on making vehicles, appliances, and other products more efficient. Investing in more energy-efficient systems and raising employees' awareness of your business will save energy by default.

The Social Benefits of Energy Efficiency

1. Make Your Brand Stand Out

Energy efficiency can significantly improve your brand image because many consumers prefer to do business with companies acting ethically toward society and the environment. Aside from factors like the ingredients or materials used in a product, the energy efficiency of the manufacturing process is a crucial aspect of whether the product can be considered green.

2. Appeal to More Potential Employees

Beyond attracting socially responsible consumers and clients, energy efficiency makes your company a desirable career choice for potential job applicants. Millennials, in particular, emphasize a company’s corporate culture, social awareness, and environmental activism.

3. Satisfy Shareholders

Energy efficiency can also indicate more significant aspects of your business that appeal to shareholders, like the fact that you’re open to embracing new technology and dedicated to running your business more effectively. Financial gains, less waste, and good social standing mean greater returns for shareholders with the good sense to invest in companies that actively pursue energy efficiency.