An “Energy Management Practices” Approach to Setting Greenhouse Gas Reduction Targets

Abstract

With the ratifi cation of the Kyoto Protocol, the global drive towards
greenhouse gas emission reductions has been taken to a new level. Even
without U.S. ratification, American companies with global operations
will be impacted both at home and abroad. Historically, companies
have had ‘hunt for savings’ programs when energy prices were high,
and then reverted to business as usual when the prices receded again.
Looming regulatory requirements will force companies to put in place
business systems that will recognize and account for the true value of
energy. When this true value of energy (economic, environmental, and
social) is considered, the rate of return on energy efficiency programs
becomes more attractive.
For most companies, greenhouse gas emission reduction translates
to reduced energy consumption or increased energy efficiency. An initial
estimate of the savings potential of an operation is needed to set site
or corporate greenhouse gas emission reduction targets. A challenging
target that is reasonable and cost effective must also be defendable and
supported by senior executives. The One-2-Five ® Energy benchmark-
ing database is a very helpful tool when considering setting voluntary
reduction targets and developing a plan to meet those targets. By as-
sessing site practices against a 22-element framework for best practice
in energy management, a site or company can quickly understand the
magnitude of its energy and greenhouse gas savings potential.
This article will outline examples of how companies have used
the One-2-Five ® Energy methodology for setting reduction targets and
establishing an action plan for achieving those targets.