It’s a safe bet that energy costs will continue to rise

Volatility has characterized the energy markets in recent years. This situation is expected to continue, and will likely result in further price increases. Since energy represents a large portion of operating expenses for many organizations, rising costs negatively affect earnings, profitability, and valuations.

You can do something about rising costs

Many managers fully appreciate the impact energy use (or misuse) has on their bottom line and competitiveness. Yet in many companies, energy costs are viewed as an uncontrollable item in the expense column. That is clearly no longer the case. Since 1990, advances in material sciences, computing and manufacturing have been bringing to market sophisticated equipment that consumes significantly less energy, requires markedly less maintenance, and just plain works better.

Quantifiable results, attractive returns, positive cash flow

Energy conservation initiatives should meet your ROI benchmarks for capital projects. We propose initiatives that have direct, measurable financial benefits and will withstand the scrutiny applied to any investment. In fact, the majority of our projects yield very attractive IRR’s and simple paybacks and generate positive cash flow as soon as the conservation measures are implemented. From our long experience we know that energy conservation projects are green-lighted when they can be justified to your board, your management committee, or your CPA.

Conservation is a powerful brand equity builder

While the initial impetus to conserve energy may be financial, every conservation effort has a positive, measurable impact on the environment. The formula is simple: less energy consumed = less pollution emitted.

Environmental concerns are squarely on the agenda of American politics and culture. Your conservation initiative has the additional benefit of generating positive perceptions and goodwill among key audiences. This may not be quantifiable, but savvy companies recognize the value of associating their brands with caring for the environment (BP and Kinko’s, among many others) and go to great lengths to leverage this value.

We urge our clients to maximize their conservation investment by publicizing it to key audiences. We assist clients through the process of obtaining an EPA EnergyStar designation. And we will coordinate the message with your PR and communications staffs as needed.