Organisations must adopt comprehensive energy management strategies that address various aspects of their operations. In this blog, TEAM Energy will explore how organisations can use their energy management strategy to inform and contribute to their net zero targets and transition.
The importance of data collection and management
Accurate data collection is the backbone of any successful energy management strategy. Organisations must ensure they have good quality data to support them in understanding their energy usage, using it as a key to compliance, streamlined budgeting, and achieving their carbon reduction targets. Data accuracy also provides complete portfolio transparency in the mission to drive down consumption.
By treating your energy and carbon data as though it is as important as financial data, organisations can ensure they are able to accurately report on their energy and consumption. Managing energy data through an automated system, instead of manually collecting it or keeping this data in spreadsheets, will mean that not only will an organisation be able to drive their energy efficiency, but they can also use the data to gain an understanding of their emission consumption.
Using monitoring and targeting (M&T), organisations can make informed decisions, optimise energy use and contribute to a greener future. By using an M&T framework, which is “you cannot manage what you cannot measure”, organisations can track, analyse and optimise energy use within their operations enabling them to reduce their energy consumption, lower costs and support their net zero targets.
How can sustainability reporting support your carbon reduction strategy?
Putting data at the heart of an organisation’s Carbon Reduction Plan, will support the measuring of its performance and tracking net zero goals effectively. By having a sustainability reporting framework, businesses can disclose their energy and carbon data, an action that is crucial for transparency and accountability within a business.
In a world where the expectations for compliance are changing and the pressure on organisations to report on their carbon reduction is increasing, creating a coherent and consistent sustainability reporting framework will help organisations meet evolving regulatory requirements and stakeholder and investor expectations.
Sustainability reporting frameworks allows organisations to track their progress, identify areas for improvement, and communicate their efforts to stakeholders. Effective reporting can also enhance an organisation’s reputation, attract environmentally conscious investors, and comply with regulatory requirements. Corporate sustainability reporting provides a public-facing platform to showcase the coordinated efforts needed to contribute to creating a more environmentally sustainable and socially equitable world.
Understanding Scope 3 emissions
Whilst reporting on Scope 1 and 2 emissions are important for an organisation, businesses should avoid only focusing on them, with Scope 3 emissions proving often the largest share of an organisation’s carbon footprint, the Scope includes all indirect emissions that occur in the value chain. These emissions stem from sources not owned or directly controlled by the organisation, these include, purchased goods and services, business travel, employee commuting and waste disposal.
For many organisations, the amount of emissions their suppliers produce has never mattered, the focus has always been on cost and the quality of service provided. However, with a net zero target to aim for, the importance of Scope 3 emissions has increased.
Addressing Scope 3 emissions requires a collaborative approach with suppliers, customers, and other stakeholders. By engaging with these partners, organisations can identify emission hotspots and implement strategies to reduce them. For instance, choosing suppliers with strong environmental credentials or encouraging current suppliers to commit to their own net zero targets.
Balancing cost savings with emission reductions
A common challenge for organisations is balancing the need to cut costs with the imperative to reduce emissions. However, these goals are not mutually exclusive. In fact, many energy saving measures can lead to significant cost savings. For example:
To help organisations understand what needs to be implemented into their operations and buildings to support with energy efficiency and in reducing carbon, businesses may benefit from an audit and survey. This can identify areas of energy and water waste and can advise on what can be improved upon.
By integrating cost saving measures with emission reduction strategies, organisations can create a sustainable business model that supports their net zero targets and saves on operational overheads in the long term.
Final thoughts
An effective energy management strategy that addresses Scope 3 emissions, leverages comprehensive data collection and sustainability reporting, and balances cost savings with emission reductions is essential for organisations aiming to achieve net zero. By taking a holistic approach and engaging with all stakeholders, businesses can make significant strides towards a sustainable future.
How TEAM can help
Balancing energy management and carbon reduction is what TEAM Energy does best.
Organisations that are committed to integrating their energy management strategy with their carbon reduction strategy to support them in achieving their net zero targets, would benefit from TEAM’s Sustainability and Energy Management Software: Sigma. Sigma can help your organisation efficiently establish and drive your digital energy management strategy, cut your carbon emissions, implement new processes and policies, streamline resource and reduce overheads, all within one system.
Through the use of Sigma, you can manage your energy and carbon consumption data, report on your carbon emissions, analyse your energy use, track the success of your projects, and budget and forecast for the future, making energy and carbon management easy.