American Gas - August/September 2011 - (Page 5)

industry insights in the knoW As Sustainability Goes Mainstream … Energy services companies can help energy-minded customers overcome their perceived greatest hurdle to going green: upfront costs. ou don’t have to look far to see that more and more companies are promoting their products based on energy efficiency, renewable resources, clean energy and sustainability principles. A 2009 Siemens Industry Inc. and McGraw-Hill Construction study confirmed this phenomenon. The “Greening of Corporate America: The Pathway to Sustainability—From Strategy to Action” study revealed that sustainability has shifted to become a core component of business performance in corporate America. In fact, the study found that 75 percent of responding firms are engaging in sustainability activities, which they view as consistent with their company’s profit mission. With the mainstreaming of sustainability activities in corporate America, corporations are more frequently asking companies like Siemens for energy-efficient solutions. The same trend is occurring in publicly owned facilities at the municipal, state and federal levels. Energy costs are largely responsible for driving interest in these projects, but other factors, like changes in technology, are also promoting sustainability projects. The figure on the next page shows the key drivers of sustainability in today’s marketplace, as uncovered by the Siemens/McGrawHill Construction study. The study projected that 2011 will be a “tipping point” for sustainable building practices: This year, more large companies will be dedicated to sustainability than not. In other words, energyefficient and sustainable building practices have now become standard among large companies and public facilities. Additionally, this trend is expected to shift to other smaller businesses. Y Why Businesses Are Going Green Businesses and public facilities expect a variety of benefits from sustainability programs and green building initiatives. Chief among these benefits is the desire to reduce operating costs through environmental efficiencies that generate energy savings. In some cases, the upfront costs of the energy efficiency improvements can be a deterrent to implementing energy-savings projects. In these cases, working with an energy services company (ESCO) can help. When companies engage an ESCO to implement energy efficiency improvements, they partner to uncover strategies that are designed to reduce the consumption of all utilities, including electricity, natural gas and oil, and water, through an energy services performance contract. The ESCO monetizes the savings based on current utility rates, creating a revenue stream that helps the customer pay for the upfront costs of the project over time. Today’s market offers a wealth of energy-efficient, sustainable and even LEED-certified products to use during project implementation, as well as energy management systems that can help companies and public entities make the most of their investments in energy-efficient building initiatives. When projects are guided by an energy services performance contract, the savings are guaranteed, ensuring the work that’s done is effective and helps generate energy cost savings. These benefits can be a potential boon to entities still recovering from the global recession, but implementing these sustainable solutions is not without challenges. The corporaAmericAn GAs rEginA durgA is a sales executive for siemens industry inc., Building technologies division, Energy and Environmental solutions. august/september 2011 5

Table of Contents for the Digital Edition of American Gas - August/September 2011

American Gas - August/September 2011
Contents
President’s Message
In the Know
Industry News
Safety First
Is Now the Time for NGVs?
NGVs for America
The Drive to Succeed
Peer Pressures
Vendor News
Marketplace
Advertisers’ Index
Places to Be
Noteworthies
Jobline
Facts on Gas

American Gas - August/September 2011