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The Bottom-Line Benefits

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New research delves into corporate decision-making for energy-efficiency measures

With a heightened awareness of climate change and increasing evidence of global warming, both individuals and businesses are looking for ways to minimize their carbon footprints. However, for both groups, rising energy costs are also a motivating factor in reducing electricity and gas consumption.
Indeed, according to a new survey of North American business leaders commissioned by Johnson Controls, the majority of executives are starting energy-saving initiatives both to “green” the world as well as improve their bottom line.
The Johnson Controls Energy Efficiency Indicator focused on decision-making individuals from a wide range of facilities and locations. These executives tasked with making energy-management decisions within organizations were asked how they were responding to electricity and natural gas usage in the organization.
Among the results:
  • 52 percent of the executives surveyed said they decided to invest in energy-efficiency measures for cost-savings reasons.
  • 35 percent said cost savings and environmental responsibility were equal motivators. 13 percent said environmental concerns were the greater motivator for developing energy-efficiency measures or programs. 62 percent said their companies are focusing more attention on energy efficiency today compared with five years ago.

Greater Awareness, Greater Investment

Looking toward the future, 79 percent of respondents said they think electricity and natural gas prices will increase significantly within the next 12 months, with an average price increase of 13.25 percent anticipated. As a result, 57 percent expect to make energy-efficiency improvements during the same time period, devoting an average of 8 percent of capital expenditure budgets on energy-efficiency projects; and 64 percent anticipate using funds from their operating budgets, allocating 6 percent to energy-efficiency improvements.
With rising energy costs expected to be a continued driver for new-business initiatives, Johnson Controls plans to repeat the Energy Efficiency Indicator research annually.