EaaS — Providing businesses with a competitive edge
For any business entity, staying ahead of the competition is one of the ingredients of success. To keep up with the competition and not fall behind requires constant innovation, and being ahead requires thinking that goes beyond. One of the most followed business philosophies is that of Kaizen — the Japanese method of incremental, but constant innovation. The efficiency of a company involves efficiency in all aspects of its functioning, and energy efficiency is one of the critical ones.
Apart from reducing expenses, having a low carbon footprint and sourcing energy from renewables burnishes the green credentials of a company. In a world grappling with climate change, customers and investors want to engage with companies that coexist with the environment and are not against it. And increasingly, countries are pushing for greener ways for businesses to operate. Energy as a Service (EaaS) helps companies transition to such an operation, without impacting their expenses.
One of the fixed expenditures that most businesses have is that of energy. From powering operations to office appliances, energy ends up impacting the bottom line in small or big measures. It was an overlooked area for improving efficiencies and reducing the cost of operations except for those businesses having a substantial expenditure on energy. However, even when other businesses wanted to reduce their energy use, there didn’t exist many options to assist in this endeavor.
Energy use can be reduced, made more efficient, and greener, in a number of ways. Discovering the spots where energy usage can be reduced, finding areas where efficiencies can be gained, investing in retrofits, gathering and using data to optimize energy use, and powering operations through renewable energy such as solar required significant expertise and investments.
For larger companies that embarked on this, allocating resources and personnel was not difficult, especially as it provided benefits in the long run. However, for smaller businesses, these are outside the area of their expertise as well as their budgets.
With the evolution of EaaS, smaller businesses have the same access to expertise and innovations that larger businesses have, thus allowing them to focus on their core business operations. Smaller enterprises no longer have to worry about inefficient energy infrastructure, or being behind larger businesses in having access to efficient equipment. With EaaS solutions, they know that they have access to the best expertise and the latest technologies.
Having a zero-emissions business operation doesn’t just help with better finances, but also in helping a business stand out from its peers. With rising awareness about climate change and its impacts, customers are aligning themselves with businesses that have the least impact on the planet. This has multiple facets to it, and energy is one of the most important ones. Companies that get their energy from zero-emission sources such as solar and wind are thus able to attract customers who place great value on sustainability. An increasing number of businesses are thus signing on to Net Zero pledges, and committing to reducing their emissions to zero across their operations. Such commitments require businesses to be aware of areas where they can reduce their energy use, and be able to generate energy in real estate available through renewable energy or sourcing clean energy generated elsewhere. This requires expertise and installations which are hard to deal with for businesses on their own but is something that EaaS provides with ease, thus enabling companies to position themselves as responsible actors.
Apart from customers, investors are also beginning to see the benefits of investing in companies that are sustainable in their operations. The rising number and scale of Environmental, Social, and Governance funds (ESG funds) and similar funds show that risk calculations go beyond financial risk to analyze how other ecosystems might impact the operations, and hence the robustness of a business. And a critical component of any such investing is the environmental impact of a company and its energy efficiency.
While a business might be in sound financial health at the moment, a poor performance on the environmental front means that it might face challenges in its operations at a later period. And these are risks that are weighed when valuing a business. To ensure that they don’t lose out on investments, businesses need to reduce their emissions while increasing their energy efficiency. And EaaS provides this capability with ease, and helps a business to position itself for the future without impacting finances in the present.
Energy security is thus not just something that is in the minds of countries, but businesses as well. Any disruption in energy access impacts the operations of a business adversely, and businesses need help securing the way they obtain their energy. Energy as a Service is an ideal way for any business to improve its finances, position itself better, and show that it is a responsible actor, and do so without having to worry about having access to the right expertise or a lack of finance.