bottom line will be better funded
Corporate energy, also known as corporate environmental effectiveness, is the philosophy of using available energy within an organisation to produce non-toxic benefits and not reducing overall energy usage. Corporate environmental effectiveness is based upon the principal that: “the more you save, the more you grow.” The idea behind this approach is simple: the more energy you are able to conserve, the less you will need to borrow, and ultimately the less you will need to sell. It follows that if you conserve energy and do not need to borrow, your bottom line will be better funded. In the end, corporate energy saves money and profits for everyone.
Today, most large multinational companies are investing their resources in the areas of climate change and sustainability. Corporate energy transition is a critical component of these moves. A company which has a strong commitment to a “green” and “sustainable” corporate energy program will not only have increased productivity and improved company morale, but also help to decrease the likelihood of catastrophic climate change. Research has shown that corporate energy transition strategies that incorporate high levels of efficiency and renewable technology have significantly lessened the risks associated with climate change, whilst at the same time, increasing company profits.
cost-effective energy generation
Most large multinational companies today purchase power purchase from renewable energy sources, such as solar and wind power, and also utilise geothermal heat. Through research and stake sales, multinational companies have identified geothermal power as a potentially efficient yet cost-effective energy generation method. Because geothermal power is not an energy source which is consumed regularly, it presents significant challenges in terms of infrastructure, but because it can supply enough power to meet the company’s sustainability goals, the costs associated with installation are well worth it. Renewable power purchases can be obtained through a variety of different methods such as the purchase of power purchase from local authorities, the construction of large solar facilities, and the use of sustainable technology to generate power from sustainable energy sources such as solar power or wind power.
In addition to reducing greenhouse gas emissions, sustainable energy use reduces the reliance upon fossil fuels and minimizes the need for additional greenhouse gas emissions. One of the most obvious benefits of corporate energy efficiency programs is that a company will become more fuel-efficient. Increasing fuel efficiency helps to ensure that a company has a significantly lower need for imported oil, thereby decreasing the amount of money that is spent on shipping crude oil around the world. A company’s fuel costs will also be reduced if its engines are designed to run more efficiently, meaning that fewer harmful emissions are produced. It can also help to decrease the amount of noise and vibration produced by heavy machinery.
conserving resources for future generations
Another significant impact of corporate procurement strategies which focus on energy efficiency is that a company can be more “green” than others when it comes to purchasing services and products. For instance, it may be more “green” to purchase materials such as recycled glass, paper, and plastic than it would be to purchase the same products that contain lead, zinc, and copper. A company can be committed to renewable energy procurement strategies which focus on reducing one’s energy consumption while conserving resources for future generations. When these strategies are put into place, a company demonstrates its responsibility to future generations and becomes more ecologically responsible. As future generations are born, their knowledge about sustainability and conservation will increase.
Decades from now, people will be able to look back and identify with what the major corporations of today have done for sustainability. At the present time, it is vital for corporations to become more energy efficient. Corporate energy efficiency does not simply reduce costs; it also improves a company’s ability to protect the environment for future generations. Investing in renewable energy procurement strategies are an investment in the future and the welfare of future generations. Therefore, every large corporation should be thinking about corporate procurement strategies that are focused on sustainability.