Schneider Electric Survey Lauds Efficiency Funding
Investment in Energy Efficiency Increasing as Business Leaders See ROI
ANDOVER, Mass. — Three-quarters of decision makers at U.S. companies have invested in energy-efficiency programs in the past 12 months, and more than half (56 percent) project their investment in energy efficiency next year will be more than last year, according to survey results released by Schneider Electric.
This represents a 12 percent increase in energy-efficiency investments and a 13 percent increase in projected investments in the past 12 months, according to a similar survey of energy leaders conducted by Schneider Electric in June 2013.
“Increased investment suggests business leaders are seeing a return,” said Laurent Vernerey, president and CEO, North America operations, Schneider Electric. “In fact, more than half [51 percent] of respondents said they realize at least a 25 percent return on investment [ROI] on efficiency initiatives. This type of return will drive more investment in efficiency applied across the enterprise — beyond energy consumption — as organizations find they must become operationally efficient to remain competitive and profitable in today’s environment.”
One potential driver of the increased investment is simply that a path to efficiency is now easier to measure due to a major trend emerging across the enterprise: the convergence of information technology (IT) and operational technology (OT). When asked about the biggest trends impacting business today, more than half (56 percent) of respondents cited this trend, with 61 percent saying that energy efficiency was its biggest benefit. Byproducts of increased efficiency, including cost reductions (48 percent) and optimized business processes (43 percent), were also reported as benefits.
However, respondents acknowledged this trend comes with its own set of challenges, including more complex technology management (55 percent), security (54 percent), and conflict between IT and operations staff (47 percent).
“The need for efficiency is increasing, as is the complexity of what companies can and should do,” Vernerey said. “To stay competitive, more and more companies today need expertise on issues, such as how to manage volatile commodity costs, balance sustainability pressures from governments, and modernize systems and infrastructure in a smart way.”
Publication date: 10/6/2014