Focus: Energy Efficiency

Making The Case For Energy Efficiency

A communication gap between the CFO and facility managers can mean missing out on good efficiency projects


For commercial building owners and facility managers, financially compelling investments in energy projects continue to represent an undeniable and yet untapped opportunity — estimated to offer $290 billion in net present value across the US commercial building sector, according to an article from Building Operating Management on the FacilitiesNet website.

 The motivation is there: As evidence, look to the nearly half of all Fortune 500 companies that have set at least one clean energy or climate target. But several market barriers have made it difficult for the large majority of commercial building owners to capitalize on this opportunity —particularly portfolio owners, who stand to benefit the most.

 These market barriers have been well documented. For example, Johnson Controls’ latest survey of more than 1,200 energy and facility management executives found that the most common barriers relate to financial capacity and technical expertise: lack of funding, uncertainty about savings and performance, insufficient payback or return on investment, lack of technical expertise to evaluate or execute projects, and lack of awareness of opportunities.

But at the core of these market barriers is one primary, overarching challenge that’s hampering the decision-making ability of commercial portfolio owners. This challenge can best be summarized as a language barrier consisting of two parts:

• A communication gap. Most existing energy project evaluation approaches have an inherent bias toward energy savings, and fail to adequately consider project economics and generate the kinds of business metrics that decision makers need.

• Lost in translation. Analyses are often fragmented and the multiple stakeholders involved in evaluating and executing energy projects (from building engineers and facility managers to portfolio managers and CFOs) tend to speak different languages based on their respective skill sets and priorities, making a comprehensive understanding of opportunities much harder to achieve.  

Read the full FacilitiesNet article.



August 7, 2020


Topic Area: Energy Efficiency


Recent Posts

Sunflower Medical Group Facing Lawsuit Following January Data Breach

The lawsuit seeks a jury trial, damages, expanded credit monitoring services and security improvements at Sunflower Medical Group.


Nemours Children's Health Opens New Location in Lake Nona

The nearly 8,000-square-foot facility will increase access to primary and specialty care services.


Enhancing Safety at Hennepin Healthcare with a Screening System

Case study: The system was able to detect 2,500 risk items in less than five months.


Healthcare Workers Outside Butler Memorial Hospital for Increased Workplace Safety

The picketing comes as the nurses and other healthcare staff experience increasing incidents of workplace violence.


TriasMD Set to Open DISC Surgery Center at Carlsbad

With construction finished, it is now being equipped and staffed to take on its first cases.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.