Energy management, we can say, is actively observing the consumption of energy resources and deciding how to make it efficient. 

Why is it important for businesses? To reduce costs as well as provide a positive image by reducing carbon footprint. It also ensures a long term limit free future for the firm. Compliance, on the other hand, is basically following a set of rules. 

Compliance Benchmarking Explained

Benchmarking is comparing an organization’s values, rules, and other things with other organisations. Therefore, compliance benchmarking is a term used to refer to the concept of measuring the usage of energy resources by an organisation and listing the findings so it can be compared with others. 

This can in turn play an important part in energy management by certain key benefits which we will explore in detail in the next part of this post.

Benefits of Compliance Benchmarking

Energy Compliance Benchmarking is important for a couple of reasons such as improved efficiency, alignment of goals with regulatory bodies etc. It provides enormous benefit to the whole business industry as well as individual businesses. 

Most importantly, for any organisation to have a sense of efficiency, it’s important to have a measure to compare their output against. In essence, the main purpose of benchmarking compliance strategies against industry standards is to achieve a grander image in terms of efficiency, productivity etc. of one’s own organisation. 

With this, compliance benchmarking also has a multitude of benefits which we are explored below:

• Enhanced Regulatory Alignment: Businesses can align their own usage of energy against the set standard by governmental bodies. Doing that helps them avoid potential risky cases as well as put out a positive image of the business.
• Risk Reduction: Not only does a Business avoid risk from governmental intervention by compliance benchmarking but also reduces the risk of unsustainable practices as well as loss of customer base due to a negative image. Therefore, risks are greatly reduced when energy compliance is benchmarked against the industry.
• Performance Enhancement: Businesses will also notice that because standards have been put in place after a certain amount of research, benchmarking energy consumption against those standards will result in more productive output. That is, less energy will be utilized for maximum production therefore improving the performance of an organization as well.
• Cost efficiency: Last but not least, benchmarking compliance of energy also results in the most efficient way to manage energy resources. That means reduction and efficiency of costs.

It is an agreed thing that compliance benchmarking has benefits. However, implementing it throughout any organisation can be a hefty task. Therefore, there are certain strategies which are proposed and usually agreed upon in the community which can make the process of implementing benchmarking more smooth and easier.

Steps to Implement Compliance Benchmarking 

We have already established that benchmarking can be crucial in making energy management sustainable as well as provide multiple benefits for businesses. In this section of the post, we are going to discuss how to implement compliance benchmarking.

Firstly, it is important to analyse current energy management strategies and compliance. This would include going over data points such as energy bills, inventory size, a comprehensive review of current policies, and discussion of the current compliance requirements. Then the organisation should move onto surveying sites or any physical place. There, an organisation conducts its business activity as well as hire an energy auditor to gather a more comprehensive analysis of energy consumption. 

Once all the data have been gathered, it should be properly analysed to evaluate energy consumption requirements and compare it against current compliance requirements. Next step for any organisation would be to partner up with a benchmarking company. This is important to find out about different benchmarking metrics and which is most suitable for a said organisation. 

After selecting the benchmarking metrics, the organisation can move towards the final stage of implementation: actionable steps. For this, two teams can be designed. One whose job is to go over the planned benchmarking, devise an action plan accordingly, and follow upon it. 

However, the other team must be there to overview the plan to ensure everything is smoothly done as well as find gaps where certain benchmarking metrics can be improved in order to make energy management even more sustainable.

Challenges and Solutions

While benchmarking is beneficial, businesses might face some challenges implementing it. Let’s break down the most common challenges and how they can be resolved.

1. Data Gathering

Data analysis of energy consumption, compliance requirements, and benchmark policies can be very tricky to analyse. Furthermore, it might be difficult to even compile enough data in order to reach a comprehensive evaluation of the most efficient energy consumption option due to poor record keeping. 

This can potentially result in incompetent benchmark strategies which can hurt a business severely. Therefore, it is important that a centralised team is hired to gather all the data before analysing it. 

It is also imperative to make sure that the data collected is of quality, substance, and relevant. Another solution would be to computerise all the data so it is safe, secured, and all in one place.

2. Benchmarks

Perhaps the biggest problem businesses will face when implementing benchmarks is the sole selection of benchmarks. Let’s assume an industry is pretty new to a country, there are only a few firms operating. In a scenario like this, benchmarks are somewhat absent so there’s a lack of available benchmarks. Interestingly the opposite can take place too. 

For example, an industry might have a lot of small firms operating within it which makes selection of a particular benchmark out of the many available difficult to analyse. 

Lastly, benchmarks work best when used within the same structure types. In essence, applying a benchmark of a certain industry on another might result in epic failure! To avoid all of this, research is necessary. 

Researching governmental data, industry data, and benchmarking organisations can provide a clearer image. Furthermore, for the absence of benchmarks, research into not only industry in a certain region should be done but also on the national and international level. It is to gain a more comprehensive image so a properly evaluated benchmark can be chosen.

3. Complexity regarding Compliance

It is difficult to keep a track of updated energy compliance requirements which can make benchmarking even more difficult. Every new requirement requires the entire process to take place again; from data analysis to application of data and selecting and setting the appropriate benchmark. Thus, it will be difficult to implement a new compliance into the benchmark process seamlessly. 

This will put a burden on resources as well invite internal resistance within an organisation. However, luckily, solutions for this problem exist as well. Existing resources, including staff, can be catered to respond quickly to benchmark and compliance changes through training. 

Moreover, third-party energy consultants or experts in compliance can be hired. They are well informed about compliance changes and can help in a smooth transition every single time!

Conclusion 

Energy compliance Benchmarking can be a great way to make energy management sustainable. This is beneficial to businesses increasing their productivity and enhancing their image. Implementing benchmarks can be a hefty task but through proper policies, strategies, and organisational structure, it is an achievable aim which could be beneficial to businesses in the long run. 

Towards the future, it is imperative to realise the detrimental effects of inappropriate energy management. Such management does not only harm the environment but waste crucially important resources resulting in heavy negative externalities. 

In the future, there’s a hope and a push from businesses as well as policymakers to introduce benchmarking as part of every business plan in order to enhance sustainable energy management.

Additional Resources

While this post provides a detailed outlook on the role, purpose, and benefits of energy compliance benchmarking, reading more into the technique can help. 

For this, Energy Management in Buildings by ASHRAE along with the Lean Six Sigma black belt handbook can help tremendously. It is also advised to look into websites such as ‘energy star portfolio manager’ and research papers on energy performance benchmarking strategies. 

To conclude, benchmarking compliance for energy management against industry and governmental standards can be a secret way to merge both, business development and sustainability, making both achievable at the same time.