Uncovering the hidden revenue stream in becoming more energy-efficient

There are a lot of good reasons to take a hard look at energy efficiency these days- reducing energy costs, securing LEED credits, and being socially responsible, to name a few. But there is another benefit that many building owners are not capitalizing on: managing your carbon footprint to improve energy efficiency. The American Clean Energy and Security Act was passed by the House earlier this summer. Love it or hate it, the passage of any climate change related bill will change the way businesses need to think about this issue. Before the passage of this bill, the Environmental Protection Agency had already estimated that over 30,000 firms will be measuring their carbon emissions annually. The point of view on carbon tracking has changed from "show me a number" to "show me what you can do with that number." In other words let's not just do this for the sake of the exercise, but let's put in place a uniform, auditable measurement methodology that can influence decisions. Enterprise Carbon Accounting Not surprisingly, the methodologies to compute carbon reductions have become increasingly robust over the past few years as reporting standards have matured. The gold standard in carbon tracking is called "enterprise carbon accounting." In the past, measuring a carbon footprint was important because it was a good indicator of wasteful operations. It also acted as a useful common "language" to compare the sustainability of operations across various buildings, and businesses. As an organization, if you're pushing energy efficiency but not tracking it in a way that allows you to quantify and audit the savings, then there is money being left on the table. So whether you are reducing the energy you use directly or buying from cleaner sources of energy, carbon accounting can help you get ahead of the pack. Further, with pending legislation, there is an even more valuable reason to consider a rigorous, robust carbon accounting methodology: it can generate a new revenue stream in tradable credits. So what does all of this mean for your building or company? If you want to use carbon measurement as a tool to root out waste in your organization, or if you want to benefit from these developing markets by trading an offset, then you have to assess and manage the energy you use directly by improving your operations or indirectly by considering where you source your energy from. Here are some tips on where to start: * Engage with your employees: Employees bring knowledge about operational efficiencies and a passion for doing something that benefits the wider community. Bring them into the process. * Benchmark within your organization: Compare performance against other buildings or across floors in your building to identify energy efficiency measures that can be shared. * Get a handle on your existing carbon footprint: Your industry will drive what part of your business contributes highest to emissions. For a building owner or property manager, electricity, steam, and gas used will typically make up the majority of your carbon footprint. * Add a few new metrics to your decision making: Consider carbon metrics alongside traditional financial metrics when reviewing the viability of energy efficiency projects. (i.e., carbon dioxide equivalents saved over the life of an energy efficiency measure). For building owners and managers it's important to be aggressive not just in implementing energy efficiency, but in tracking it as well. * Take advantage of existing data: Tools such as monitoring-based commissioning can automatically read the data in your building management system to provide real-time insight into your building's performance. This can directly be translated into an up-to-date carbon footprint. There are a number of different tools available to develop a footprint and integrate carbon assessments into project evaluation. What's important is that a system is established to measure and manage this footprint. When this happens, across the board benefits can take hold, such as energy savings and operational efficiencies that feed the bottom line, as well as tradable offsets and a more eco-friendly image that can contribute to the top line. Sangeeta Ranade is an energy efficiency business development manager and Jay Nihalani is the director of carbon solutions with EnerNOC, New York, N.Y.